Malawi has once again been thrown into political turmoil following President Bingu Wa Mutharika's rebuff of legislators demands that their perks be increased as a condition for approving government's 2006/07 budget.

"I have refused to agree to this selfish demand because our country and economy cannot absorb this increase," retorted Mutharika in a strongly worded statement issued Thursday night.

Mutharika's response comes in the wake of an impasse that has rocked the 192-member parliament as the majority opposition led by the Malawi Congress Party (MCP) and the former ruling United Democratic Front (UDF) refused to pass 2006/07 budget.

The national assembly was suspended on Tuesday until Monday ( July 24) after the government failed to meet the opposition demand for 70 percent salary increment.

A legislator in Malawi earns about 2,000 U.S. dollars a month while the country's per capita income is 160 dollars per year.

The opposition parties have also threatened to shoot down the budget unless the president makes a commitment to refrain from appointing cabinet ministers from opposition camps and to hold local government elections this year.

The political wrangle between the government and opposition has worsened following Mutharika's recent appointment into cabinet of two legislators from the main opposition MCP and one from the UDF.

Mutharika said in the statement aired on state television and radio that he had met leaders of the opposition in the capital, Lilongwe on Thursday to chart the way forward.

"I carefully listened to their complaints but none of their complaints justifies them to reject the budget. It's not Bingu's budget, it's the budget of the people for them to get out of poverty," he said.

He said rejection of the budget was destroying Malawi's chances for development and it was sending wrong signals to the international community and investors.

"Malawi is facing a serious economic crisis and I appeal to all Malawians to talk to their MPs to bring sense into their heads, " Mutharika said.

The president has since ordered a freeze on all salary increments involving the public sector until he establishes a salary and wages review board that will examine the country's entire salary structure.

Reacting to the president's statements, UDF Parliamentary Chief Whip, Leonard Mangulama, said that the country's opposition would make an appropriate response to Mutharika's remarks, which he described as misleading.

"The president is not telling the truth..Our intention is not to shoot down the budget. We just want government to address our concerns," said Mangulama, indicating that the opposition would also officially respond to the president's statement.

The country's parliament was expected to pass a 986 million dollar government budget by June 30 as Malawi's fiscal year runs from July 1 to next year's June 30.

The government is currently running on a 248 million dollar provisional budget which would run until September 30, 2006.

Source: Xinhua