By Ncaba Ntshakala
The Ministry of Finance’s first quarter report for the 2024/25 financial year has revealed that the government has earmarked a total of E6.34 billion for capital projects. However, only 13% of this budget has been released so far, highlighting the slow start typically observed in the initial phase of the fiscal year.
The report details that the Ministry of Economic Planning and Development received E315 million, the Ministry of Public Works and Transport was allocated E198 million, and the Ministry of Health was granted E89 million.
These releases account for the main disbursements made in the first quarter, signalling the government’s intent to kickstart key infrastructure and development projects.
While the outturn for capital projects appears low at this stage, the Ministry of Finance emphasized that the first quarter of any fiscal year usually experiences such a trend due to the initial setup of capital projects.
Additionally, the ministry noted that payments are still being posted on the Treasury system, meaning the actual expenditure for Q1 might currently be underestimated.
During the official opening of the first session of the 12th Parliament earlier this year, His Majesty King Mswati III highlighted the importance of reviving the national economy and improving service delivery across the Kingdom.
In his address, King Mswati III stressed the urgency of advancing major capital projects and infrastructure developments, including the commencement of the Parliament Building and Data Recovery Centre.
RELATED: FDI’s set to bring over E11 billion investment capital, 14551 jobs
The King also emphasized the need to prioritize the completion of the International Convention Centre (ICC) and Hotel in the upcoming financial year.
Furthermore, His Majesty King Mswati III announced that the construction of the Strategic Oil Reserve, aimed at achieving fuel sufficiency, would begin within the next six months.
He also called for a comprehensive national infrastructure program to upgrade roads, power supply, water systems, and housing.
The King highlighted that about 400 kilometres of roads still need to be tarred, with rural roads requiring significant improvement to alleviate the challenges faced by the people and transport operators.
RELATED: E1 billion worth of Microprojects uplifting communities
Echoing the King’s sentiments, the Minister of Finance Neal Rijkenberg, in his budget speech, aligned the 2024/25 budget with the National Development Agenda.
He emphasized that the budget was designed to address social challenges, build critical infrastructure, and promote economic growth.
“To attain this growth, we will be prioritizing the completion of existing capital projects and spending in excess of E1 billion more on capital infrastructure compared to the current year’s actual spend,” Rijkenberg stated.
Among the major projects the Minister said are set for completion; are the International Convention Centre (ICC), the Manzini-Mpandze Highway, the Mpandze-Mbadlane Highway, the Nhlangano-Sicunusa road, and several others, including the Lower Usuthu Smallholder Irrigation Project (LUSIP phase two) and the Shiselweni Network Reinforcement projects.
The minister highlighted that prioritizing the completion of these projects would position the country to start reaping economic returns from their operationalization while creating room in the capital budget for new initiatives moving forward.