Minister of Finance , Felix Mlusu has today presented a K2.190 Trillion 2020-2021 National Budget in which the Ministry of Education has been allocated K384.5 Billion representing 31 percent of the total National Budget.
Among others, Ministries such as Agriculture, Health, Transport and Energy have received K354 Billion, K204 Billion, K150 Billion and K57.8 Billion respectively.
Mlusu says the Tonse Alliance Government has come up with a budget that will help inclusive development of the country.
He announced that Tax free band has been increased from K 45,000 to K 100,000 to improve lives of Malawians.
“Government realizes the need to increase disposable income for salaried employees and enhance their purchasing power,”
“In this regard, Government has increased the Pay As You Earn (PAYE) zero bracket from K45,000.00 per month to K100,000 per month,” he says.
According to Mlusu, government is aware that this adjustment is huge and to minimize its impact on the base for Personal Income Tax, the 15 percent middle bracket under the PAYE regime has been removed.
The Finance Minister has also announced the adjustment of Constituency Development Fund (CDF) from K30,0000,000 to K40,000,000 to allow constituency development to flourish.