Economists want 2026/27 budget to incentivise firms

Economists have placed high expectations on the 2026/27 National Budget as they anticipate the fiscal plan to offer direction and provide incentives for the private sector. They expressed the sentiments in separate interviews this week as the Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha prepares to present the fiscal plan on February 27 in Parliament in Lilongwe ahead of the new financial year to roll out on April 1. In a write-up titled ‘A budget at the crossroads: Will the 2026/27 fiscal plan heal or harden Malawi’s economic pain?’, Centre for the Social Concern economic governance officer Agnes Nyirongo said the forthcoming budget is more than a routine fiscal exercise.

She said Malawians will not merely be listening for numbers, but for direction the economy will take in the next 12 months. She said the fiscal plan comes on the back of a raft of tax measures that triggered mixed reactions as they have dampened people’s disposable income. Said Nyirongo: “The budget will be judged not only by economists and technocrats, but by teachers, nurses, farmers, traders, minibus drivers and young graduates searching for jobs.

In a separate interview, University of Malawi economics lecturer Edward Leman said he expects a budget that goes beyond the short-term stabilisation and offers more concrete solutions to the current economic challenges. He stressed that while there are early signs of recovery, it is still too early to celebrate as the economy remains fragile. Said Leman: “I expect the 2026/27 budget to introduce stronger interventions aimed at addressing the root causes of our economic difficulties, which largely stem from below-par productivity.

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“Without meaningful improvements in productivity, any recovery will likely be short-lived. Beyond managing the current situation, building economic resilience should be a central focus.” He said the productive-oriented budget could guarantee the economy decisive shift towards increased production, value addition and enhanced participation in international trade. Financial expert Brian Kampanje highlighted the need for Treasury to prioritise increasing non-tax revenue through intuitive and innovative solutions.

“There are so many idle government investments which must be divested and increase public resources,” he said. On her part, Economics Association of Malawi president Bertha Bangara-Chikadza said the outlook underlines the need for discipline rather than populism.

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