•  Budget approved amid economic challenges

• Agriculture gets largest share; health, roads, education also prioritized

• IMF sees 2.7% growth despite debt, inflation, and food insecurity

Malawi’s parliament approved the national budget for the 2026/2027 fiscal year on Tuesday, with total spending set at 10,978 billion Malawian kwacha ($6.8 billion).

Agriculture received the largest allocation at 971.3 billion kwacha, the government said on X. The Ministry of Health and Sanitation was allocated 558.07 billion kwacha, followed by the Road Fund Administration with 447.1 billion and the Ministry of Education with 316.6 billion.

Security forces, including the Defence Forces and the Police Service, also received substantial funding as part of efforts to strengthen national stability. Oversight bodies such as the Anti-Corruption Bureau and the National Assembly were also allocated funds.

The budget was approved amid a difficult economic backdrop marked by a prolonged drought, foreign exchange and fuel shortages, high inflation and a large current account deficit. More than 20% of the population face food insecurity, while public and external debt remain unsustainable at about 88% of GDP at the end of 2024, according to the International Monetary Fund (IMF).

Despite these challenges, the IMF expects a moderate recovery, with growth forecast at 2.7% in 2026.

Ingrid Haffiny