The Chakwera led government has effected an 8 percent salary adjustment for civil servants in the proposed budget which comes against cancellation of an industrial action in December last year.

In the 2023-2024 budget, wages and salaries are estimated at K897.00 billion, representing 23.2 percent of total expenditure and 5.9 percent of the country’s GDP.

At this level, wages and salaries represent 30.4 percent of the recurrent expenses.

Government has also approved introduction of transport allowance to all civil servants effective April 2023 with a provision of K39.1 billion for this purpose.

According to Finance Minister Sosten Gwengwe, another Special allowance is being considered and will be announced once the due processes have been concluded.

Honorarium for chiefs which has not been revised in the longest time, has been doubled with a provision of K3.16 billion to cater for the change.

Treasury has also allocated K8.9 billion for recruitment of primary and secondary school teachers and an additional K4 billion for general recruitment in various Ministries, Departments and government agencies (MDA)’s.

The education and skills development sector has gotten the lion’s share with an allocation of a total of K603.36 billion in the 2023/24 financial year representing 4 percent of GDP and 15.6 percent of the total budget.

K455.10 billion representing 3.0 percent of GDP and 11.8 percent of the total budget, respectively has gone to the agriculture sector.

The health sector has been allocated K330.18 billion in the 2023/2024 fiscal year in   ensuring a healthier population to positively contribute to Malawi’s social economic growth and development.

An allocation of K246.29 billion, representing 6.4 percent of the total budget and 1.6 percent of GDP respectively has gone to the Transport and ICT Infrastructure Sector.

The Governance and Rule of Law sector has been given K125.94 billion, which is 0.8 percent of GDP representing 3.3 percent of the total budget.

These resources will cater for wages and salaries and operations of oversight institutions including Judiciary, Anti-Corruption Bureau, Office of the Ombudsman, Law Commission and Malawi Human Rights Commission.

Government has extended the duty free disposal of motor vehicles after 5 years, currently being provided only to legislators, to other individual beneficiaries with similar privileges such as Judges, diplomats, senior government officers and returning residents.

Last year Government removed taxes on some solar products in order to promote the use of clean energy in support of its initiative of addressing deforestation as well as reducing the strain on hydroelectricity and aligning with development policies such as the Malawi 2063, National Energy Policy and National Charcoal Strategy.

In continuing with the same spirit, the Government is removing import duties on gas appliances such as cookers and hotplates.

Some of the tax measures implemented include: the removal of the 40 percent income bracket in the Pay As You Earn (PAYE).

2025 being an election year and realising that Malawi cannot fund her polls using one financial year, the country’s electoral body has received an increased allocation.

“To this end Malawi Electoral Commission has been allocated K45.95 billion to start initial preparation processes. We thank the EU for showing commitment to partner government in this very important democratic and governance exercise and I call upon other partners to come forward and ensure that 2025 delivers a credible election”.