2019/20 COMPETITIVE BUDGET

MBABANE – The 2019/2020 E21.83 billion budget for Eswatini seems to be more objective and realistic, giving the country much hope for achieving a reasonable level of competitiveness.

This is based on the fact that besides focusing on establishing an economically resilient base, government has taken into consideration the implementation of both short and long-term mitigation strategies that were more endogenous in nature as instruments for revamping the economy which had taken a nose dive. However, government might not realise much if it did not take into consideration the principle of inclusivity and innovation. Southern African Research Foundation for Economic Development (SARFED) Regional Coordinator George Choongwa said the Eswatini economy currently grows at an average of less than two per cent per year, characterised with a weak fiscal policy which was skewed on recurrent expenditure and low revenues.

He mentioned that the current situation at hand, capped with fiscal challenges, the country would have to make reasonable adjustment measures for fixing both short and long-term benefits of the country. However, it would be prudent if the new government developed a sustainable economic national integrated plan that would incorporate and harmonise key economic indicators in the achievement of a balanced economic structure. This would mean that there would be need to identify key performance indicators so at to stimulate the cost saving measures as a first step in fiscal recovery.  In this regard, internal public operations systems would need to be reviewed for the purpose of promoting efficiency.

“The ease of doing business among key state and non-state actors would need to be considered. It is relevant for government to make paying taxes and other related costs easier. This can be done through the use of technological means such as the innovation of Mobile money, speed points and many related facilities where means of payments would be done easily by the consumer or general public. This would be done through the collaboration of the private service sector,’’ Choongwa advised. “An economy cannot be competitive if the consumer purchasing power remains weak.

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