By Painkiller Social Network
BLANTYRE-(MaraviPost)-There’s one thing I’ve noticed in President Peter Mutharika’s government needs to be worked on timely.
The Mutharika’s Democratic Progressive Party (DPP) administration is working hard to implement what we call a feasible Fiscal Consolidation Policy, aiming to cut down on unnecessary government expenditures.
Mutharika has already merged some ministerial positions to reduce the number of ministers a commendable move toward trimming public spending.
But as we all know, economics is a tricky field, it behaves almost like a human being walking barefoot.
When we walk, we move one leg forward while the other follows creating progress. The same principle applies when running an economy, both legs must work together. In this economics case, those legs are fiscal and monetary policy.
Now, here’s where the drama lies. While the DPP government is working tirelessly to cut down the inflated budget inherited from the Lazarus Chakwera administration, it seems their focus is too heavily placed on fiscal consolidation forgetting the crucial role of monetary policy.
As a result, we are now witnessing prices of basic commodities continuing to rise little by little.
If the monetary side is not restructured soon, we will all feel the heat.
From the knowledge and wisdom I have gained from my Party President, Dr Dalitso Kabambe who is also an economic engineer I strongly advise the government to adopt a combined economic growth strategy where both fiscal and monetary policies are properly adjusted and implemented in harmony.
When that happens, prices will begin to stabilize. Of course, this is not simple to execute that’s exactly where you need a direct advice from Dr. Dalitso Kabambe, whose development economics models could provide the roadmap Malawi needs.
Guys honestly, Dr. Kabambe is a very intelligent man and indeed a central nervous system of the Malawian economy.
Come here to learn!
Disclaimer: The views expressed in the article are those of the author not necessarily of The Maravi Post or Editor
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