BY MBONGENI NDLELA
LOBAMBA – The current administration has admitted to having inherited a flailing economy coming from a weak fiscal position when it took over in late 2018 but, despite this, it has managed to record significant achievements since then.
When tabling the 2022/2023 budget speech, which has been themed ‘transforming through economic sustainability’, Minister of Finance Neal Rijkenberg pointed to the need to celebrate successes, provide a clear and sustainable fiscal path forward and create hope for a collective future as a united Nation.
He was realistic though that while the successes were indicators for a “brighter tomorrow”, the year 2022/23 will, unfortunately, be another tough year for the administration as they would continue on a fiscal consolidation path.
“We have successfully addressed a number of critical issues. Government spending has improved through the restructuring of the CTA, the Phalala Fund has been refocused on growing local domestic capacity to address healthcare so that we can reduce our dependence on this fund, we have also started to issue lump-sum contracts instead of re-measurable contractors on our capital projects. We continue to prioritise the repayment of arrears. We are reducing our dependence on debt and are now approaching a sustainable path. On the recommendation of the International Monetary Fund, we have tightened financial controls to ensure ministries do not overspend on their approved budgets,” the minister said.
He said the work that was being done to transform the governance and financial position was starting to bear fruit and the administration was embarking on a more sustainable path as an economy, as a continuation to build on the progress made over the past 3 years.
“It is hard work and we believe there are no magic solutions. But by addressing leakages and fixing economic policies that have failed over years of misuse and inefficiency, we will see our economy, and the welfare of our nation, thrive,” he said.
Rijkenberg explained that transformation through Economic Sustainability meant making the right long-term policy, and then implementing it consistently over time.
He assured all EmaSwati that there was renewed hope, and then made a re-emphasis on the successes by listing them as follows:
- The country’s GDP growth has shown remarkable resilience with growth of 5.9 percent projected for 2021.
- The significant benefits from the successful implementation of the Post-Covid Recovery Plan.
- The country now has a 24-hour access to South Africa – our biggest trading partner.
- Significant increases in our Customs Union receipts over time due to the measures that we have put in place.
- The commissioning of LUSIP Phase II.
- The introduction of the life-line electricity tariff for the most vulnerable.
- The completion of the Manzini to KMIII International Airport highway.
- Improved cash flow leading to reduction of arrears.
- The shutting of CTA trading account.
- Moving from re-measurable contracts to lump-sum contracts which limits cost over runs on capital projects.
- Spending within the budget.
- Healthy reserves and a positive trade balance.
- Mining licences issued.
He said if EmaSwati do not lose faith, Government “is moving towards a more sustainable path”.
The minister concluded by quoting a scripture from the book of Joshua chapter 1 verse 9; “Have I not commanded you? Be strong and of good courage; be not afraid, neither be dismayed, for the Lord your God is with you wherever you go”.
