Salary pressures, corruption, economic strain dominate midterm budget review debate

By Thokozani Mazibuko

The Midterm Budget Review debate in the House of Assembly on Monday was marked by strong concerns over the country’s fiscal direction, with Members of Parliament warning that ballooning salary costs, persistent corruption and slow private sector growth continue to threaten Eswatini’s financial stability.

The debate followed the presentation of the Midterm Budget Review by Minister for Finance Neal Rijkenberg, who outlined the status of public finances, economic growth prospects and performance.

Minister for Tinkhundla Administration and Development Sikhumbuzo Dlamini was among the first to respond. He welcomed the confidence shown by the Minister for Finance, describing it as a sign that stability may be achieved if decisive actions are taken.

Dlamini said his ministry would support measures aimed at strengthening cash flow management while also exploring strategies to stimulate economic growth.

However, he raised a strong warning about the impact of the salary review implemented earlier this year. According to Dlamini, the revised salary structure has placed the country under significant strain.

He cautioned that the expanded wage bill may become unmanageable without urgent reforms. Dlamini added that the biggest leak in public finances remains corruption, and he called upon the Minister for Justice and Constitutional Affairs, Prince Simelane, to intensify efforts to eradicate corrupt activities that continue to drain state resources.

Mhlangatane Member of Parliament and Deputy Speaker Madala Mhlanga echoed these concerns. He said the nation is anxious about how the government will continue to sustain salary obligations without affecting frontline services.

He stressed that service delivery would inevitably decline unless the government finds new ways to generate revenue and cut waste. Mhlanga described the situation as serious, adding that Parliament must collectively push for solutions that protect essential services while safeguarding financial stability.

MP Futhi Ngcamphalala from the Lubombo Region focused on the country’s Stabilisation Fund, a reserve intended to cushion the nation whenever Southern African Customs Union receipts decline.

She requested clarity on how much has already been deposited into the fund and whether it is being managed in line with long-term economic resilience strategies.

Ngcamphalala cautioned strongly against borrowing money to pay salaries or suppliers, saying taking a loan to pay off another loan could trigger a dangerous cycle of dependency.

She insisted that stabilisation should come from sound management rather than unsustainable borrowing.

Hhukwini MP Alec Lushaba commended the Minister for Finance for maintaining consistency in reporting the country’s financial picture each year.

He noted however that while economic indicators show growth on paper, many emaSwati are not experiencing the benefits. Lushaba said the economy remains unable to support local suppliers, some of whom have been forced to close due to delayed payments from the government.

He criticised the contradiction between the Minister’s report and findings from the Auditor General, which revealed substantial losses linked to corrupt activities within state structures.

Lushaba called on the judiciary to take a more active role in addressing corruption. He added that the focus should not be on the country’s debt-to-GDP ratio alone, but on practical measures to create jobs and stimulate economic expansion.

Kubuta MP Masiphula Mamba questioned the absence of updates regarding the country’s commitments to climate change mitigation. He said the House expected a clearer report on progress made in fulfilling climate-related obligations.

Mamba also challenged the shift from projections of double-digit growth to a revised six per cent outlook. He argued that a truly strong economy must be driven by the private sector.

Mamba expressed worry about the persistent delays in paying government suppliers, which he said continue to undermine confidence and economic continuity.

Lobamba Lomdzala MP Marwick Khumalo concluded by calling for tangible evidence of economic growth. He said statistical projections were not enough unless citizens and businesses could feel the impact.

Khumalo noted that many countries now prioritise their own citizens in the awarding of tenders and suggested that Eswatini should rethink its approach to procurement to protect local industries.

He said the current economic environment requires deliberate strategies to support national participation in public contracts.