LILONGWE-(MaraviPost)—President Peter Mutharika’s Democratic Progressive Party (DPP) led- Government on Friday, November 21, 2025 revised the 2025-2026 national budget from unveiled MK8.077 trillion to MK8.59 trillion.
The GDP growth for 2025 has been revised downward to 2.7 percent, with projections showing a rebound to 3.9 percent in 2026.
Presenting the proposed budget before the August House on Friday, Minister of Finance Joseph Mwanamvekha said the rise in expenditure reflects government’s commitment to stabilising the economy while prioritising key developmental and social sectors.
Mwanamvekha outlined several cost-cutting measures aimed at tightening public expenditure and improving efficiency across government institutions.
He announced that foreign missions will undergo restructuring, with each embassy expected to operate under stricter staffing limits to reduce administrative costs.
As part of broader austerity efforts, the minister also revealed that fuel allocations for Cabinet ministers will be reduced an initiative he said is intended to demonstrate the government’s commitment to fiscal discipline.
Additionally, Mwanamvekha warned that non-performing directors in the civil service will have their contracts terminated, stressing that public resources must be managed by competent and results-oriented leaders.
He told lawmakers that although the fiscal environment remains challenging, the proposed measures are designed to steer the economy toward stability while safeguarding essential public services.
He further said the country economic resilience has dropped because some donors have stopped funding their programs because the country has high debt repayment obligations.
In his remarks, Leader of Opposition Simplex Chithyola said that the tax increases introduced by the DPP administration will negatively impact poor Malawians.
He added that the delays in recruitment and promotions within the public service will further affect many citizens.
Chithyola also promised to provide a clear and formal response regarding the State House allocation and other related issues.
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