Publication: Malawi - Public Expenditures : Issues and Options
Date
2001-09
ISSN
Published
2001-09
Author(s)
World Bank
Abstract
This report argues that public
expenditure outcomes in Malawi, can be improved in the next
few years, provided 1) additional spending on priority items
is balanced by expenditure cut-backs in low priority areas,
so that public expenditures remain within fiscal parameters
to restore macroeconomic stability; 2) incentives for
improving the budget process are strengthened; 3)
intra-sectoral allocations in key sectors, i.e., education,
health, agriculture, and roads, focus on key public goods,
and, measures to improve spending are enforced; and, 4)
areas such as pensions, and parastatals are restructured, so
as to reduce future fiscal burden. Balancing additional
spending on priority areas within a macroeconomic framework,
will require expenditure restructuring, by limiting
non-essential spending, to reduce the country's overall
deficit, achieve its macro targets, and attain the Heavily
Indebted Poor Countries (HIPC) debt relief finance, which
should allow additional spending on priority items.
Recommendations suggest a shift in expenditures towards
social sectors, HIV/AIDS control and prevention, roads
management improvement, and, governance to strengthen the
budgetary process. And, savings could be generated by
reducing ad-hoc expenditures (e.g., maize price
interventions), reducing State Officials allocations (e.g.,
residences, foreign travel, etc.), and, curbing fraud and corruption.
Citation
“World Bank. 2001. Malawi - Public Expenditures : Issues and Options. Public expenditure review (PER);. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/15480 License: CC BY 3.0 IGO.”