Malawi budget debate starts without opposition

Malawi's parliament began debating the annual budget on Wednesday without opposition deputies who boycotted the session in a row that is putting at risk donor aid and key services.

The debate should have been concluded by June 30, to allow 2007/08 budget spending in the poor southern African country, but discussion was suspended last month because of the spat over the alleged poaching of opposition members by the ruling party.

President Bingu wa Mutharika threatened on Tuesday to close parliament if lawmakers did not start debating the budget within two days, and speaker Louis Chimango ordered legislators to start the discussion on Tuesday evening.

Ruling party deputies began discussing the budget early on Wednesday but opposition legislators -- who have boycotted the debate until the poaching dispute is settled -- sat in silence.

"We are going to decide whether we will join the debate or not this afternoon," opposition leader John Tembo told Reuters.

Finance Minister Goodall Gondwe warned in an interview with Reuters this week that the country of 12 million risked losing crucial donor budget aid if the stand-off continued. If no budget is passed quickly, essential services could be cut off.

The draft budget allocates more resources to poor rural areas, proposes salary increases for civil servants and higher spending on health care and food production.

Malawi relies heavily on donor support for its public spending. Gondwe said the country was expecting $500 million of foreign aid for its $1.2 billion budget.

The government rejected on Monday a proposal by the opposition United Democratic Front and Malawi Congress Party, who together hold the majority in the House, to adopt a temporary three-month budget that would allow for public spending while the political dispute over their members is resolved.