The World Bank has provided the additional support to Malawi worth 80 Million Dollars (about 140 Billion) to support the budget execution, improve resource mobilization and implementation of Malawi Finance Management strategy.
According to the press statement released earlier today, the bank says, the funds will be unlocked upon the achievements of indicators such as an increase in domestic value-added tax (VAT), revenue collection, decreases in variance between approved budget and expenditure outturn and an increase of contract data accessible by citizens.
Meanwhile, the World Bank Country Director for Malawi, Zambia, Zimbabwe, and Tanzania, Nathan Belete said the programme will help resolve the challenge of limited fiscal space and low forex reserves in Malawi despite the a new IMF program and the recent world Bank DPO series.
He further said the package will serve as a platform for harmonized planning, coordination and utilization of resources for service recovery and will complement the extended credit facility programme signed with IMF and World Bank Policy Financing.
However, Minister of Finance Simplex Chithyola Banda confirmed the development as a way to create a solid foundation for their fiscal governance and sustain policy reforms throughout the span of the PFM strategy implementation.
