Ministry of Finance

For details on the Ministry of Finance, please click here
Mision
To undertake prudent economic and public financial management to ensure macroeconomic stability for the promotion of sustainable economic  growth and development of Malawi nation through:
  • Provision of prudent financial management policies and guidelines
  • Efficient and coordinated resource mobilization
  • Efficient and coordinated resource allocation
  • Efficient accounting of all public resources
  • Provision of efficient and effective Management Information  Systems
  • Coordination of aid and implementation of efficient debt management systems   by liaising with the donor community and other stakeholders

This will be achieved by the efficient utilization of professionally competent staff dedicated to the pursuit of transparency and accountability in the use of public resources.
 

Organisational Structure
The Ministry of Finance comprises the following institutions :-
  • Ministry Headquarters, the Treasury
  • Accountant General’s Department

Strategic Objectives

The Ministry headquarters provides leadership for the whole Ministry although the three Departments are operationally independent of the Ministry and have their own votes.  The Ministry headquarters is headed by Secretary to the Treasury.

The Ministry headquarters has the following divisions/sections whose heads report to the Secretary to the Treasury.

  • Administration and Support Services
  • Economic Affairs Division
  • Debt and Aid Management Department
  • Budget Division
Administration and Support Services
The Administration and Support Services Division comprises the following:
  • Office of the Minister
  • Management and Office Services

Purpose

The Administration and Support Services exists to provide leadership in the efficient and effective management of resources, provide a link between the Ministry and the general public and facilitate the provision of necessary information.

Functions
 
The Division’s functions are to :-

  • Identify and recommend measures that would enhance efficiency and effectiveness in the delivery of services and management of resources. Provide logistical support to other Sections. Procure goods and services and manage stores Provide leadership and direction in the implementation of programmes. Identify and provide solutions to existing problems.
  • Provide public relations activities.
The Economic Affairs Division
The division within the Ministry of Finance and Economic Planning comprises five sections namely:
  • Macro section which deals with issues of macroeconomics and statistics
  • Tax Policy section both direct and indirect
  • Sectoral Policy Analysis both regional and domestic
  • Planning section
  • Public Enterprise Reform and Monitoring Unit which has just being introduced.

All these sections are managed by the Principal Secretary who is the Director of Affairs. His functions cover both technical and administrative management of the section and he reports to the Secretary to the Treasury on all issues concerning the section.

Mission Statement
The Economic Affairs Division advises the Government on both Fiscal and Monetary policies, appropriate financial programmes and on sectoral policy based on economic monitoring and analysis in consultations with national financial institutions and other government agencies  
Debt and Aid Management Department
The Ministry of Finance mobilises the required external resources to finance development projects in the country. On average, about 80% of the capital budget is annually financed by grants and concessional loans from donors and creditors . Lack of a centralised management unit within the Government to monitor the entire debt and aid cycle necessitated the creation of a Debt and Aid Management Department in the Ministry of Finance. Creation of this Department means bringing under one umbrella the Bilateral and Multilateral Sections , the Debt Unit in the Economic Affairs Section, the Claims Unit and Public Debt Section in the Accountant General’s Department so that the various functions which cut across the debt and aid cycle are coordinated in such a manner as to achieve a more professional approach to debt and aid management. Although newly created, the Debt and Aid Management Department is the focal point within the Ministry and Government for co-ordination and administration of foreign aid which Government receives from both multilateral and bilateral donors and agencies. The Department is also the official channel through which the Government communicates with the aid agencies . The Department also deals with the aid agencies on foreign aid matters. The Department is headed by Director of Debt and Aid Management. 

Currently, major donors and creditors for Malawi include the World Bank (IDA), African Development Bank (ADB) European Union, IFAD, UNDP, and other United Nations Agencies such as UNICEF, WHO, FAO and UNHCR, the Government of Japan, United States of America, Germany, France, China, Norway, Finland, Belgium, Kuwait, Netherlands and Denmark etc. 

Purpose 
The purpose of the Department is to mobilise external resources and manage national debt and aid. 

Functions 
The functions of the Department are to:
  • Source resources
  • Coordinate with donors
  Budget Division
The Budget Division has evolved from a Section in the Ministry and plays a central role of administering the preparation of the Government budget and managing Government finances.  Revenues come from non-taxable income and loans and grants.  Loans are used mostly for development purposes.  Expenditure on the other hand is done through votes and heads.  Recurrent expenditure is wholly financed by Government.

Purpose
The purpose of the Budget Division is to manage Government finances through collection of revenue and control of expenditure.

Functions
The Division's main functions are to :-

  • Prepare estimates using MTEF as a budgeting tool.
  • Monitor, on monthly basis, expenditure by ministries and departments
  • Determine reductions and changes in expenditure
  • Source Government money for and analyse financial positions of Statutory Corporations

Some of the Divisions in the Ministry act as service divisions on behalf of Budget Division which uses the money and is responsible for integrating the recurrent and development expenditures into a single budget.  The Budget Division carries out all its functions through the following distinct Sections.

  • Budget Operations
  • Budget Planning
  • Budget Monitoring
  • Budget Finance
Back to the top