By Edwin Mauluka

Leader of Opposition in Parliament, Simplex Chithyola Banda, has delivered a mixed assessment of the Mid-Year Budget presented on Friday by Minister of Finance Joseph Mwanamvekha.

Chithyola said that while some budget measures have the potential to steer the country toward economic growth, others burden already-struggling Malawians through an expanded tax regime. He cited the suspension of government recruitments and promotions, as well as the uniform increase of Value Added Tax (VAT) to 17.5 percent, as decisions that will negatively impact citizens.

“Simply put, they are overtaxing Malawians who are already suffering from economic challenges,” he said.

Chithyola, who is expected to deliver his official response to the budget in Parliament on Monday, argued that freezing hiring and promotions will have long-term consequences.

“If they cannot recruit people now, if they cannot promote people now, in 2030 our government will recruit Malawians and we will also promote Malawians because we believe that recruitment, promotion and employment provide disposable income to a lot of Malawians whose income largely depends on employment,” he said.

Despite his concerns, the opposition leader acknowledged positive elements in the budget. He noted that the statement incorporates several development initiatives originally introduced under the Malawi Congress Party (MCP) administration.

“You have heard of diaspora engagement; you have heard a number of measures on how to expand the revenue base. So, it is a continuation of the same budget,” observed Chithyola. “Mostly, it is a resumption of what we presented before in the House.”

Chithyola also pointed to measures affecting the emerging mining sector. He stressed that addressing the projected budget deficit will require increased investment in production across key sectors to generate revenue and stimulate economic activity.

He added that despite existing challenges, there are “flickers of hope,” particularly in the new administration’s focus on mining, agriculture, tourism, and diaspora engagement.

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Photo of Chithyola above by Edwin Mauluka