World Bank disburses US$ 25 million

The World Bank (WB) has announced the disbursement of US $25 million to support the country's Fiscal Management and Accelerating Growth Programme (FIMAG), which is geared to improve service delivery, bolstering fiscal management and accelerating agricultural growth. In 2001 the International Monetary Fund barred budget support for Malawi as a result of government overspending. Major Western governments also demanded greater transparency and froze their funding. Up to 80 percent of Malawi's development budget is provided by donors. The release of US $25 million by the WB is expected to boost Mutharika's 2004/05 budget, which is currently being discussed in parliament. Since assuming power earlier this year the new president has sought to convince the international donor community of his government's commitment to fiscal discipline and stamp out corruption. (Malawi Standard, Blantyre)