LILONGWE.

Barely a few days after President Bingu wa Mutharika beat former African Union (AU) chairperson Colonel Muamar Gadafi to the top continental chair, the ministry of finance is looking for an additional MK950 million to the national budget to support the AU's activities.

Minister Ken Kandodo told Parliament meeting in the capital Lilongwe that as chairperson, Mutharika and Malawi, "the budget will also enable Malawi host AU ministerial meetings during the first half of the calendar year."

He said there was also need for a further MK450 million to go into his ministry to meet costs for the upcoming February AU Finance and Planning Ministers' meeting.

Commentators reacted with inquistiveness. The Malawi Economic Justice Network (MEJN) asked government to shade more light on the issues. Another financiel authority said the expenditure was 'high risk figures' that requires more explanation.

Kandodo's 2009/2010 budget also adds MK500 million will go towards supporting Mutharika's AU activities.

Other areas budgeted for include MK950 million for relief food as Malawi is currently facing a dry spell and an army worm attack in about 14 districts - threatening possible famine.

Farm input expenditure faces a chop from MK20.914 billion to a near two digit drop of MK18,986 billion, mainly, said the minister, due to fluctuation of prices on the world market. By December about 1,509 families had benefitted from the subsidy programme after a distribution of 150,928 metric tonnes of fertiliser.

During the first half of the last budget, government raised MK77.8 billion from domestic revenue, 4.9 percent higher than the projected MK74.2 billion beating a target of MK8.9 billion.

The ministry is hopeful the International Monetary Fund (IMF) will see it fit to conclude its discussions with government on a positive note as most donors cited they were delaying their grant disbursement due to the development.

Metland MacFarlen, the country's IMF resident representative, hailed government for maintaining a good fiscal policy during the first budget year and that the extra money asked for made it imperative for Capital Hill to set resource expenditure priorities.