Transitioning from informality is increasingly recognized as one of the main development challenges 
worldwide. An estimated 89 per cent of employed people in Malawi are in informal employment, 
implying that transitioning from informality would contribute to improved livelihoods for many households. This informal economy budget analysis was conducted to examine how budgets address the 
needs and interests of the informal economy workers, specifically focusing on market traders and 
vendors in Lilongwe City. Consultations with key stakeholders provided insights about the status 
of the informal economy. Budget allocations and expenditures for the years 2015/16, 2016/17, 
2017/18 and approved estimates for 2018/19 were also analyzed.