Mwanamvekha Presents K1.923 Trillion 2026/2027 National Budget

Minister of Finance, Economic Planning and Decentralisation, Honourable Joseph Mwanamvekha, on Friday presented the 2026/2027 National Budget before the Parliament in Lilongwe.

The financial plan outlines key fiscal measures aimed at stabilising Malawi’s economy and promoting inclusive growth.

In his statement to the House, Mwanamvekha announced that K1.923 trillion has been allocated to wages and salaries for the 2026/2027 Financial Year.

This represents an increase from K1.63 trillion in the 2025/2026 Fiscal Year.

He expressed optimism that ongoing fiscal reforms will help ease economic pressures and restore stability.

The Minister projected that inflation will decline from the current 28.5 percent to 15 percent by the end of the 2026/2027 Financial Year.

Government has also set aside approximately K296 billion for pensions and gratuities.

Mwanamvekha assured pensioners that payments will be made on time.

In a move aimed at supporting small businesses, the Minister announced that government has raised the mandatory Value Added Tax (VAT) registration threshold from K25 million to K50 million in annual turnover.

He said the measure will exempt small and medium enterprises, including cross-border traders, from VAT registration and operating under the Electronic Tax System (EIS).

Mwanamvekha further disclosed that 30 percent of the total budget will be directed towards development projects to stimulate economic growth and improve service delivery.

He added that increased funding has been allocated to social protection programmes to cushion vulnerable groups.

The Minister also announced the removal of taxes on assistive devices and equipment for persons with disabilities.

He said the move is intended to enhance accessibility, promote equality and improve the quality of life for people living with disabilities.

On infrastructure, Mwanamvekha assured Malawians that the Salima–Lilongwe Water Project will continue.

He noted that the project was initiated under the Democratic Progressive Party administration and remains essential in meeting the growing demand for clean water in Lilongwe and surrounding areas.

Meanwhile, Malawi Revenue Authority Commissioner General, Felix Tambulasi, expressed confidence that the Authority will meet its revenue collection targets for the 2026/2027 Financial Year.

He said the institution has the capacity to enhance domestic resource mobilisation in support of the budget.

Minister of Information and Communications Technology, Dr Shadric Namalomba, said the digital reforms highlighted in the budget align with directives by President Arthur Peter Mutharika.

He said Ministries, Departments and Agencies are expected to embrace digital technology to improve efficiency in public service delivery.

In conclusion, Mwanamvekha expressed gratitude to development partners, including the United Nations and the European Union, for their continued support in sectors such as health, infrastructure and governance.