Tax collections reach E7.7 billion in mid-term review

By Delisa Magagula

The Minister for Finance, Neal Rijkenberg, says government revenue collection reached E7.7 billion by the end of September, marking an increase from E7 billion in the same period last year.

He delivered the update during his weekly finance in focus blog update, following the tabling of the mid-term budget review in Parliament, noting that collections remain on track despite slow performance in the first half of the financial year.

Rijkenberg said tax collections traditionally improve in the second half of the year and projected the shortfall seen earlier would close.

He added that the country is expected to collect E2 billion more in tax revenue this financial year compared to last year. According to him, the improvement is driven by a broader tax base and compliance efforts by the Eswatini Revenue Service (ERS), rather than changes in tax rates.

While revenue performance has been encouraging, expenditure pressure has intensified. The minister noted that government’s cashflow became strained after the implementation of the civil service salary review.

“As we sit now, our cashflow is constrained,” he said, adding that the situation should ease once two approved loans are disbursed.

Rijkenberg noted that Parliament has approved loan bills from the OPEC Fund and the African Development Bank, and both have been signed and gazetted.

He said the Ministry of Finance is finalising loan agreements, and funds are expected within two to three weeks. The minister said the incoming funds would allow government to clear all outstanding ERS supplier payments.

Despite this relief, Rijkenberg warned that the remainder of the financial year will be marked by tight spending controls.

He said government is already over its budgeted expenditure for the year, and ministries will undergo significant budget cuts to remain within the approved spending ceiling by the end of March.

“The Mid-Term Review also highlighted progress on IFMAS, the Integrated Financial Management and Accounting System being introduced across government.

The system developed with support from Rwanda is intended to replace paper-based processes with a digital, transparent workflow that tracks each stage from budgeting to payment,” Rijkenberg confirmed.

He further noted that next year’s national budget will be prepared on IFMAS and that the entire government will operate on the system from April 1, 2026.

He said the shift to IFMAS and the move toward accrual accounting are expected to improve accountability and streamline processing times for procurement, payments and audits.

The minister added that the budget process for the 2025/26 financial year has begun. A budget call circular has been issued to all ministries, but he cautioned that next year’s budget will have limited flexibility due to the salary review’s cost.

He said ministries should expect a tight allocation cycle with little room for new spending proposals. Rijkenberg stated that the Ministry of Finance, Economic Planning and Public Service will assess ministry submissions through the usual stages of the Public Budget Committee before forwarding a draft to Cabinet, Parliament and, ultimately, His Majesty for approval before the end of March.