LILONGWE-(MaraviPost)-The United Transformation Movement (UTM) party has strongly criticized the 2025/26 Mid-Year Budget, accusing the Democratic Progressive Party (DPP) government of continuing what it describes as a “failed economic path” left behind by the former Malawi Congress Party (MCP) administration.

In a statement released today and signed by UTM Director of Finance and Economic Affairs Simon Mwayang’ana, the party highlighted the fragility of Malawi’s economy, citing rising food prices, foreign exchange shortages, growing public debt, increasing unemployment, and deepening poverty that continues to keep the country among the poorest in the world.

UTM acknowledged that the DPP inherited these challenges from the previous MCP government but stressed that the new administration must now take full responsibility for addressing them.

The party criticized the mid-year budget for failing to deliver solutions, arguing that the measures outlined fail to respond to the country’s urgent economic needs.

“Malawi needed discipline – it received consumption. Malawi needed a production revolution – it received tax hikes. Malawi needed liquidity control – it received expansion. Malawi needed a credible foreign exchange plan – it received administrative controls,” the statement reads in part.

UTM further noted that the budget does not adequately address structural issues and risks perpetuating fiscal mismanagement, worsening inflation, and further burdening citizens already struggling with high living costs.

The party also raised concerns about the overestimation of Gross Domestic Product projections, the inflation outlook that is not aligned with prevailing economic realities, and ongoing foreign exchange challenges that threaten to destabilize trade and business activities.

Additionally, UTM warned that fiscal deficits and domestic borrowing remain unchecked, and criticized the newly introduced tax measures as heavy, inflationary, and counterproductive, potentially undermining economic growth and development.

The statement concludes with a call for the government to implement policies that prioritize production, fiscal discipline, and sustainable economic reforms to alleviate poverty and restore public confidence in national economic management.

UTM’s critique underscores growing public concern over Malawi’s economic trajectory and highlights the pressure on the DPP to adopt bold measures to address the country’s persistent financial and structural challenges.

The Maravi Post