13:26 Tertiary scholarship budget increase to E647m
Finance Minister Neal Rijkenberg has revealed that the government has decided to increase the tertiary scholarship to E647m from E361m.
This shows an increase of E286m and will benefit an additional 1000 students. In total government will now accommodate 3500 students annually instead of the 2 500 who were benefiting previously.
He further tabled alongside the budget regulations for the establishment of a National Student Loan Revolving Fund that will be managed by one of the commercial banks. This fund should solve the problem of limited scholarships in time.
Interviewed after the budget speech Labour and Social Security Minister Phila Buthelezi said the Fund will now be sufficiently supported, as the scholarship repayments will go direct to the Fund instead of the Consolidated Fund.
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“In as much as we were receiving over E60m in repayments, they were not paid directly to us but disappeared within the government system. Now, this Fund changes all that and we are optimistic that going forward the Fund will be sustainable,” the Labour minister said.
The finance minister further revealed that to promote compliance with the labour laws, the Government will be pre-testing the Strategic Compliance Plan portal – which is a tool aimed to maximise available resources in conducting labour inspections and promoting labour compliance.
“This tool was developed by the ILO in 2018 when the Kingdom of Eswatini volunteered to be amongst ILO Member States in whose jurisdictions the ILO Strategic Labour Compliance Planning on labour inspection, could be applied.”
“Mr. Speaker, following the recommendations of the National Skills Audit Report 2022, the Ministry of Labour will be reviewing the National Human Resources Development Policy, which will serve as a guide to provide opportunities for all emaSwati in terms of human resource development in the country,” he said.
12:35 Health receives E2.76 billion
The government has allocated E2.76 billion to the Ministry of Health for the year 2023/24 to improve the health of the nation.
Finance Minister Neal Rijkenberg said they are encouraged to see that the ministry of Health continues to make notable strides in the fight against HIV and AIDS.
He however noted that despite the strides, the government was still facing challenges to supply medicine effectively and efficiently to emaSwati.
“Today, I am tabling a report shedding light on the problems we are facing in the ministry of health on the supply of medicines to emaSwati,” he said.
He said according to the Eswatini HIV Incidence Measurement Survey (SHIMS 3), in 2021, the ministry reduced the HIV incidence (i.e., new HIV cases) from 1.4% in 2016/2017 to 0.62% and made significant progress towards the UNAIDS 95-95-95 targets set for 2025.
“SHIMS 3 reveals that in Eswatini, 94% of adults, 15 years and older living with HIV, are aware of their status, 97% of those aware of their status are on antiretroviral therapy (ART), and 96% of those on ART have achieved viral suppression. The government is planning to enrol even more HIV-positive patients on ART by at least 1,974 patients by March 2024.”
“This means that targeted HIV-positive people on ART will be increased from 204 483 in September 2022 to 206 457 in March 2024. The targeted HIV pregnant women on ART will be increased to 98% by March 2024. Whilst TB success rates will be increased from 84% in September 2022 to 90% in March 2024. 53. Since March 2020 the Ministry experienced a total of 74,053 confirmed Covid-19 cases, with 72,603 recoveries translating to a 98% recovery rate. 1,422 deaths were reported from the 14th of March 2020 to the 7th of January 2023. Citizens are encouraged to continue being vigilant by following the guidance given by the health sector since the fight against Covid-19 is not won yet”, he said.
He said these commitments reaffirm the position adopted by Government a few years ago, that the health sector is a priority.
12:12 The Budget Speech at a glance and in numbers
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11:59 Government commits E171 million for factory shells
As mandated by His Majesty the King in his Speech from the Throne, the government has committed to invest E171 million into building new factory shells throughout the country.
The King last week challenged the government to build at least 10 factory shells a year which would hire no less than 200 employees per factory.
“This includes developments such as the construction of the Gamula, Ndzevane and Mantambe factory shells, which will create over 3 000 jobs for emaSwati. Factory shells play a crucial role in attracting investment by creating a conducive and enabling environment, drawing FDI into our borders. Furthermore, the government shall complete the Johnson Workwear factory shell at Nhlangano and the rehabilitation of the burnt-down factory shell at Hlathikhulu,” he said.
The finance minister said public investment in infrastructure and ICT will improve the country’s competitiveness and is expected to contribute to accelerated growth rates in productive sectors such as manufacturing, mining, retail, and services. These sectors have also been encouraging a private sector-led economy.
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He said investment in infrastructure to support industrialisation is key.
“Government is continuously accelerating industrialization within our available financial resources to upgrade and develop infrastructure, such as Industrial Estates to promote domestic and foreign investments into the manufacturing sector.”
“To attract investment and strengthen value addition, the government will reinvigorate the development of the Sidvokodvo Industrial Estate of 310 hectares, which will alleviate the shortage of industrial land for investors and create employment for emaSwati. This initiative is anticipated to create 600 jobs during the initial phase of the construction and 4 000 jobs in the second year. In line with His Majesty’s Speech From The Throne, the government has committed to building factory shells to stimulate the entry of new investors into the local market,” Rijkenberg said.
He further said the coming financial year will see the development of the National Export Strategy, amendments to the Eswatini Investment Promotion Act and the Special Economic Zones Act.
He said all these programmes are crucial to the business environment for both local and international investment and will go a long way in further promoting investment from both within and outside of our borders.
The minister said the country’s global rankings contribute to setting it apart as an investment destination of choice.
“Eswatini is currently ranked 6th in the Africa Industrialization Index 2022 which is a testament to our commitment to creating an export driven 14 private sector-led economy. In implementing these economic interventions, value addition has become another priority for enhancing economic activity in Eswatini,” he said.
11:46 Fiscal projected budget to reach E24.64 billion
Finance Minister Neal Rijkenberg said the government’s revenue including grants in the 2023/24 fiscal year is projected to reach E24.64 billion, which is 30 % of GDP, an increase of about 5 percentage points on the 2022/23 budget.
He said this, SACU receipts will contribute E10.25 billion from E5.8 billion in the previous year.
“Non-SACU revenue is budgeted at E13.75 billion from E12.8 billion, a growth of 7 per cent. Total income taxes are projected to be E6.98 billion in 2023/24 a slight increase from the previous year’s budget. This is because of higher expected growth and employment in 2023/24 compared to 2022/23”, he said.
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Rijkenberg added that out of this, corporate income taxes are E1.8 billion and personal income taxes are E4.5 billion. Total taxes on goods and services are expected to be E6.13 billion. This is mainly VAT which is budgeted at E4.5 billion and fuel taxes amounting to E1.36 billion.
In terms of expenditure, Rijkenberg said the government was looking at an expected E26.44 billion.
“The total budget allocation to capital programmes amounts to E5.85 billion, which reflects a E500 million increase from last year’s budget allocation. The total expenditure for 2023/24 shows an increase of 14% compared to last year’s budget. Mr. Speaker, the budget deficit for the financial year 2023/24 is projected at 2.2 % of GDP, equal to E1.8 billion.”
The minister further stated that this year, he was tabling a fully financed budget.
“For the first time as a Minister, I am not going to the market for budget support. We had managed to bring arrears down to less than E1 billion at the beginning of the 2022/2023 budget cycle. But due to the delayed listing of our programme on the Johannesburg Stock Exchange (JSE), our arrears have grown. The JSE listing is planned to take place at the end of March 2023, and we will be using this funding to reduce the stock of arrears and aim to get the arrears totally settled in the 2023/2024 budget year,” he said.
11:36:
Finance Minister says total expenditure for the financial year 2023/24 is expected to be E26.44 billion. The total budget allocation to capital programmes, amounts to E5.85 billion, which reflects a E500 million increase from last year’s budget allocation. The total expenditure for 2023/24 shows an increase of 14 % compared to last year’s budget.
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11:32
Rijkenberg: Total income taxes are projected to be E6.98 billion in 2023/24 a slight increase from the previous year’s budget. This is because of higher expected growth and employment in 2023/24 compared to 2022/23 #EswatiniBudget #BudgetSpeech2023 #Eswatini pic.twitter.com/TKDq0oizrg
— Eswatini Daily News (@SwaziDailyNews) February 24, 2023
11:19 Eswatini economy proved to be resilient – Neal
Finance Minister Neal Rijkenberg has revealed that the country’s domestic economy proved to be resilient weathering external and domestic shocks.
“Whilst on the road to recovery, the domestic economy further dealt with climate change-induced economic disturbances, which resulted in a significant loss in agricultural output due to heavy flooding in certain areas of the country. The events combined, amounted to an estimated output loss equivalent to E 6.2 billion in 2021/2022. Nonetheless, economic activity strongly rebounded in 2021, recording a robust growth of 7.9% from a contraction of 1.6 % in 2020 as a result of re-opening the economy,” he said.
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Rijkenberg added that if one combines these two years, which are referred to as the Covid years, the economic growth out-performed all other countries in Sub-Saharan Africa.
“In 2022, like most economies, the domestic economy grappled with rising inflation, tightening monetary policy, and the re-emergence of supply disruptions, all resulting from the escalation of the global geo-political tensions, in particular that of Russia and Ukraine, which are amongst the largest producers of key commodities such as energy, wheat and fertilizer supplies globally,” the minister said.
He said the elevated inflationary pressures were transmitted into the domestic economy through hikes in the prices of food, fertilizer and fuel.
The minister said this situation resulted in dampened household spending owing to strained real wages and eroded consumers’ purchasing power, weighing heavily on the performance of demand-driven sectors such as “wholesale and retail”.
Rijkenberg said the high inflation environment resulted in a sharp increase in the cost of production.
“The domestic challenges coupled with subdued global demand and other trade disruptions negatively affected overall economic output. Resultantly, economic growth is very conservatively predicted to be muted in 2022, increasing only marginally by 0.4%.”
“However historically Eswatini has outperformed these predictions in the second half, and GDP growth could actually be significantly higher. The medium-term prospects are currently tilted towards the positive trajectory, strongly backed by an anticipated improved fiscal path boosting domestic consumption and increased investment in infrastructure development, agriculture, manufacturing, as well as mining,” he said.
The minister said these positive developments are expected to lift domestic economic growth to levels above the long-term average growth of 2.2 %, with growth in 2023 forecasted at 4.5 %.
11:04 Emaswati to receive better service delivery
The budget tabled by Finance Minister Neal Rijkenberg this morning promises better service delivery to Emaswati.
The minister said finally the plan which was put in place when this government came into office in 2018 was starting to yield positive results.
“This vision laid the foundation for the subsequent budget themes of ‘Green Shoots’, ‘Fixing the Foundations’ and ‘Transformation through Economic Sustainability’. And it is my pleasure, Mr. Speaker to announce that the theme of this Budget is ‘First Fruits’. The incredible work of this administration is now beginning to yield the resultant macro benefits and our fiscal position is stabilising and improving. Mr. Speaker, I am incredibly proud to announce the record Southern African Customs Union Receipts for 2023/2024, and to present both a record and fully-funded budget to the August House,” he said.
Rijkenberg said the real achievement is the fact that this budget puts the country on a sustainable economic path. The finance minister said the fiscal deficit is the difference between the revenue that a country
earns and its expenditure, which is usually covered by loans.
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“In 2020/2021 our fiscal deficit was 3.6%, in 2021/2022 it increased to 6.5%, in 2022/2023 we reduced it to 4.9%. This has been a very tough task and I especially thank Parliament for its assistance in this regard. The budget I am presenting today has a fiscal deficit of 2.2% of GDP. This means Mr. Speaker, that even though our debt is still slightly increasing, but if our GDP continues to grow with a minimum of 2.2%, then our debt to GPD ratio remains the same. There are a few other factors at play in this calculation but the way I have explained it is generally the case,” he said.
Rijkenberg said all indications are that the country’s GDP will grow by even more than 2.2% in 2023/2024, which will then have the effect of reducing our debt-to-GDP ratio.
“Despite these achievements, many Emaswati may not yet be seeing or experiencing these benefits in their daily lives and may not be receiving the social and economic dividends. This Budget begins to address this, by ensuring that all Emaswati receive better service delivery,” the minister said.
10:59 Rijkenberg calls for an immediate end to violence in Eswatini
Finance Minister Neal Rijkenberg while presenting his budget speech for 2023 has called for an end to the violence that has plagued the Kingdom.
He said as a Nation, we have experienced unrest and politically motivated acts of violence resulting in the loss of lives and damage to property. He said the government has responded appropriately and proportionately to these threats and has called on all stakeholders to denounce violence, constructively engage and work collectively to establish a framework for dialogue.
“This requires the immediate end to violence and an uninterrupted period of peace and stability to ensure all emaSwati can safely and meaningfully contribute to this process. Because, unless this is achieved, we will continue to fail to thrive as a Nation and as an economy. Simply put, unless the violence stops, we cannot rebuild our economy, create jobs, and deliver services”, he said.
Rijkenberg further announced that the budget was providing E30 million to facilitate the National dialogue.
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10:48
Much against expectations, there are a few people inside the Parliament gallery as the Minister of Finance Neal Rijkenberg delivers the Budget Speech. Among them is Central Bank Governor Dr Phil Mnisi. pic.twitter.com/xFkef7rd5D
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
Much against expectations, there are a few people inside the Parliament gallery as the Minister of Finance Neal Rijkenberg delivers the Budget Speech. Among them is Central Bank Governor Dr Phil Mnisi. pic.twitter.com/xFkef7rd5D
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
10:38
Minister of finance thanks King Mswati III for his wisdom
Finance Minister Neal Rijkenberg opened his address on Friday by thanking His Majesty the King for the clear mandate and direction that he gave the Nation and the Government in his speech from the Throne at the opening of this 11th Parliament.
Rijkenberg said His Majesty reminded them that “we can achieve great things if we work together in the spirit of dialogue and each one of us has a role to play in contributing meaningfully to peace in the Kingdom”.
“We also take great courage in His Majesty’s words of encouragement and hope as he declared 2023 as a year of a turnaround for our Nation, away from the pain and suffering that we have experienced in the last two years, so long as we continue to pray as a Nation and call out to God for His guidance and wisdom,” he said.
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10:19: The minister has started speaking
At exactly 10:10am,Minister of Finance Neal Rijkenberg opened his Budget Speech with a scripture from 1 Peter 5:10. He says it’s all because of God’s glory that the country’s economic growth has outperformed the region. He is now presenting the speech. pic.twitter.com/eTmfYSS2y0
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
10:10 The Minister is tabling reports
Minister of Finance Neal Rijkenberg has started the business of the day by tabling reports include Budget Estimates, Treasury Annual Report, Establishment Register, Auditor General Report and others. pic.twitter.com/GUB47gPwBl
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
Finance Minister Neal Rijkenberg has just entered the Parliament Chambers. Proceedings are about to start.
09:49
Minister Neal says the National Budget is informed by the need to provide for new policies and programs including construction of roads, scholarships, elections, exit packages for politicians and completion of capital projects mainly the ICC. pic.twitter.com/E7cCmp1qNv
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
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09:32
Minister Neal Rijkenberg poses with his wife Barbara before leaving his office. The minister is off to Parliament where he will present the Budget Speech. pic.twitter.com/mf2IyRe5rg
— Queen Ntombi Mhlongo (@Ntombz1606) February 24, 2023
We bring you a blow by blow coverage of Finance Minister Neal Rijkenberg’s 2023 budget speech which is expected to kick off at 09:30 am.
Here is a live stream from our sister publication.
WATCH: Minister Neal Rijkenberg’s Budget Speech
— Eswatini Financial Times (@EswatiniFinance) February 24, 2023
We bring you live coverage of the budget speech. #EswatiniBudget #BudgetSpeech2023 #Eswatini https://t.co/dJpTYukJEE
