MCPs fiscal policy says the Tembo government will be based on the
realization that the revenue base is very small and has drastically
shrunk over the years since 1994.
The MCP government , the party manifesto says, will aim at growth
oriented fiscal policy focusing on providing an enabling environment
for economic growth, trade and investment.
The party says to ensure that growth and development takes place, the
MCP government will remove myopic approach to expenditure management by
balancing expenditures on both social and economic services.
It says fiscal discipline will be ensured through the f policy
measures of reducing the number of cabinet positions by merging a
number of related ministries and departments.
MCP says priority in both capital and recurrent expenditure will be
give to social sectors such as agriculture, health and education.
Every attempt will be made to ensure that the allocation of public
resources is not based on any other consideration other than
justifiable economic and social needs, MCP pledges in the manifesto.
MCP says its government will strengthen administrative and operational
capacity of all revenue collecting bodies including the Malawi Revenue
Authority.
The emphasis of an MCP government will be on promotion of voluntary
compliance by applying rates that the taxpaying community will consider
reasonable, reads the party electoral pledge.
MCP says it will formulate the national budget in consultation with
wider sections of the business and civil society to ensure
inclusiveness.
It also promises to strengthen the expenditure control process in the
public service as well as review allocation priorities in order to
minimize government borrowing from the central and commercial banks.
Excessive government borrowing from domestic financial institutions,
clouds out private sector investment and is a sure recipe for high
inflation, reads the blueprint.
MCP says the DPP mantra of turning the Malawi economy from an
importing to an exporting country has turned out to be just empty
rhetoric.
Economic Policy has emphasized demand management rather than enhancing
supply side policies. Consequently, productivity has drastically gone
down resulting in alarming unemployment levels and eroding the revenue
base of the government, Tembo's party manifesto reads.
MCP says the current economic environment has failed to provide
required social and economic infrastructure such as dependable supply
of utilities, factory shells and roads for the private sector to
flourish.
Lack of transparency in the issuance of investment incentives, absence
of well defined legal and regulatory framework for investment, weak
human resource base in all spheres of investment promotion, low savings
and lack of a well defined public/private sector institution to promote
constructive and productive dialogue between the two sectors have had
negative effects on the growth of the private sector, MCP says.
MCP accused President Bingu wa Mutharika administration of lacking
capacity and vision to define and implement policy that would enhance
the productivity of the Malawi economy through the private sector.
The MCP has identified these problems and realizes that investment can
only be possible if the economy generates sufficient savings and
provides the necessary incentives for both domestic and foreign
investors.
The MCP is therefore well positioned to reverse all these ills and
bring back the glory that the private sector used to enjoy during the
MCPs rule. After all it is the MCP that established the Malawi
Investment Promotion Agency with the specific mandate to attract,
promote and facilitate both foreign and domestic investment in Malawi.
The manifesto further reads: It is also the MCP that established the
Malawi Export Promotion council to promote Malawi export abroad but
unfortunately, these very important have been crippled by underfunding
and personnel mis-posting. At the moment a decision has been made to
merge them ignoring their vital economic and developmental roles that
they have been playing.
MCP says its manifesto sets out the broad policy framework that will guide its government.
However, Tembo's party says it believes in following a strategic,
dynamic and pragmatic policy designed in liaison with all the major
stakeholders at all levels of society, especially the grassroots.
Nyasa Times
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