Macroeconomic Policy section (MPS)

The macroeconomic section is crucial for dealing with macroeconomic issues including fiscal policy which is the Ministry’s core function. The Unit is the fiscal policy information point, in that it is the source of macroeconomic data and analyses as they relate to fiscal policy and all interrelated policy arms. The Unit also coordinates all macroeconomic programmes in collaboration with all relevant institutions.

The mandate is derived from the Public Finance Management Act (PFMA) of 2003 and Treasury Instructions of 2004.

The purpose of the section is to provide first-hand sound macroeconomic advice to the Minister of Finance and the Secretary to the Treasury on macroeconomic developments and aggregates such as GDP, inflation, interest rates and general fiscal policy in consultation with Ministry of Development Planning and Cooperation (MDPC), Reserve Bank of Malawi (RBM), and National Statistics Office (NSO).

Core Functions

  • Coordinate the formulation and overseeing of short to medium – term economic, fiscal and monetary policies in collaboration with relevant institutions and partners ( see Section 14 of PFMA and First Schedule Part 1);
  • Advise the Minister of Finance and ST on short to medium term economic, fiscal and monetary policies, national accounts, balance of payments, appropriate financial programmes and sectoral policies (e.g. agriculture, roads, education, health) based on economic monitoring and analysis in consultation with relevant stakeholders (see PFMA Sections 17, 18, 19 and 20);
  • Preparation for and Review of the National Economic Program with the IMF : October/March (see Budget Calendar);
  • Reconciliation of appropriation accounts with fiscal tables in consultation with AGD in October (see Budget Calendar);
  • Preparation of Budget Policy Framework Paper :December : with BD and MDPC (see Budget Calendar)
  • Participate in macroeconomic modelling and forecasting in collaboration with MDPC, RBM, NSO, economic research institutions, (see NORAD, IMF)
  • Participate in Public Financial and Economic Management reforms (see PFEM Action Plans, CABS,).
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