- Mr. Speaker, Sir, allow me to present the framework for our economic programme for the 2002/2003 fiscal year. The objectives of this budget will be to continue pursuing our medium term development strategy which seeks to reduce poverty through increased access to basic social services, accelerating growth, improving productivity in agriculture and the manufacturing sector, enhanced internal security and ensuring existence of a stable macroeconomic environment.
- Consistent with these objectives, the programme aims to achieve real Gross Domestic Product (GDP) growth of around 2.0 percent in year 2002 and 4.5 percent in 2003; an average inflation of 9.4 percent in 2002 and 5 percent in 2003. To maintain macroeconomic stability, the overall resource envelope for the 2002/2003 budget is expected to reduce overall deficit to 1.4 percent of GDP from the expected outturn of 8 percent of GDP in 2001/2002 fiscal year.
- Mr. Speaker, Sir, Honourable Members, in order to attain the inflation targets, the Reserve Bank of Malawi will continue to maintain a tight monetary policy stance. In pursuit of this policy stance, year-end reserve money growth is targeted to reach 8 percent by December 2002.