Council Budget Review

The National Local Government Finance Committee (NLGFC) has called upon councils to make prudent estimates of revenue and expenditure for their councils as they prepare for the 2020/21 budget.

The remarks were made by the Executive Director of the NLGFC Mr Alifeyo Banda on the commencement of budget reviews and hearing meetings with individual councils across Malawi. Banda said in line with its constitutional mandate, the NLGFC conducts such yearly hearings as a measure to provide room for clarifications/technical directions to councils. This is done before submission to the NLGFC for consolidation.

The consolidated budgets are presented by the Minister of Local Government and Rural Development in Parliament for legislators noting. The Executive Director said the NLGFC would through these hearing/ sessions ensure that all council budgets conform to the guidelines that were provided during budget briefing sessions which took place earlier in the year.

Among other things, realistic local revenue estimates, alignment of budgets with national and sectorial policies, appropriate allocations to various functions of the councils such as audit functions, clearing salary arrears for direct employees, PAYE arrears, related councils debts, and IFIMIS infrastructure have to be taken into account in council’s budgets for the 2020/21 financial year.

Council were also encouraged to take appropriate revenue enhancement measures to ensure they collect realistic revenue for their operations.

The review for the 35 council budgets is expected to lead to a consolidated Local Authority Program Based Budget for 2020/21 financial year for the national assembly budget deliberations