… Government to hold taxes and on balance.
BY KWANELE TSABEDZE
LOBAMBA – Minister of Finance Neal Rijkenberg has presented an inspirational National Budget for 2023-2024.
The Minister revealed, among other things, that this year’s national budget is fully funded, reduces the debt-to-GDP ratio, and that it promises record-high revenues for Eswatini, according to estimated projections based on the current trajectory and fiscal plans.
Minister of Finance Neal Rijkenberg revealed all this when delivering his fifth National Budget Speech at the House of Assembly in Lobamba today. The Minister themed the 2023 National Budget as ‘First Fruits’.
“This administration inherited an unsustainable economy, fraught with budget deficits, declining revenues and huge financing gaps, ballooning arrears and deteriorating cash flows. Over the years, we have been lamenting over Government’s failure to meet its statutory obligations, such as paying suppliers on time and remitting all other transfers, especially to schools. Times have indeed been very difficult, but we have overcome. The budget I will be tabling today aims to bring a more positive and promising year ahead of us and a good base for the years to come,” recounted the Finance Minister.
“Through the adoption of a more expansionary fiscal policy, this budget seeks to make additional provisions to the most critical and mandatory line items and programmes to ensure that operations are not compromised. Whilst providing for new and non-discretionary items such as salary adjustments, elections, and exit packages for politicians. Care has been given to make enhanced provisions for previously compromised budget lines and programmes such as tertiary education scholarships, free primary education grants, more grants for the elderly and the disabled, youth empowerment programmes, public investment and capital expenditure. This, however, does not suggest reckless and irresponsible spending, but a move towards striking a balance between improving lives and livelihoods, while supporting sustainable growth,” noted Minister Rijkenberg.
The Minister of Finance went on to address Government’s new approach on some of the ‘problem areas.
“Mr. Speaker, in alignment with the Eswatini Strategic Roadmap, Government identified a list of policy reforms meant to lower expenditure levels and instill stronger expenditure controls, whilst closing avenues for misuse of the taxpayer’s money. The government has worked hard to rethink its expenditure priorities and ‘plug the holes in this bucket’. A number of budgetary and expenditure reforms have been enforced in our chronic problem areas such as CTA, capital projects and the Phalala fund. We have overhauled our infrastructure procurement processes, creating fiscal space to accommodate the much-needed spending on essential sectors,” announced the Minister.
“Driven by higher-than-average SACU receipts and improved domestic collections by Eswatini Revenue Services (ERS), projected revenue estimates for 2023/24 are at record highs. While this presents a very important milestone for us, it is equally important to understand the underlying consequences of the volatility of SACU revenues. Any overestimates of the SACU revenues are usually corrected over the subsequent two years. It is important therefore to be very vigilant in the manner we spend any increases from this revenue source,” noted the Minister.
“At this point, I need to commend ERS for adopting a more client-centric approach in the collection of taxes. Mr. Speaker, the year 2022/23 has been extremely difficult for all of us. We feel the pain that every Liswati is going through, especially our suppliers who have been relentlessly supplying their goods and providing services despite the irregular payments. The government together with Eswatini Revenue Services (ERS) is aiming at holding taxes constant and on balance while enhancing efficiencies in tax collection and focusing on broadening the tax base. I am pleased to announce that for the third year in a row income tax rates will not increase,” announced the Minister of Finance.
The 2023 National Budget Speech and deliberations on the First Fruits 2023 National Budget Estimates are currently ongoing at the House of Assembly.
