SHOW US THE MONEY

We are fast approaching the end of the fiscal year, soon the Finance Ministry will be tabling the budget for the year 2022/23.

I have been pondering on a couple of budget items regarding our public purse, the small issue of the E200 million budgeted for COVID-19 vaccines. Today I will focus my energies on a call for accountability and transparency regarding the public purse.
In an ideal society, issues of the public purse are to be of public interest and it is the inherent right of every liSwati to follow up and demand accountability on the expensing and utilisation of public funds. Hence, today I devote this article as a call for transparency and accountability, this is a very critical component of fiscal prudence and due diligence. Time and again, the Finance Ministry always throws around words such as fiscal prudence and discipline, and today is the time to put that to the test. Fiscal prudence is not just about belt tightening only, it is also about accountability and proper follow up procedures.

The COVID-19 millions

It is a common secret that all the vaccines we have received as a country came as donations, and none of the money that was budgeted has been used as far as we are concerned. We know for a fact that in the budget for 2021/22, a sum total of E200 million was budgeted for the procurement of vaccines. Also, it is a common secret that the country received support from the IMF and from the World Bank to support the vaccination drive in the country. The World Bank gave the country a boost of US$5 million as additional financing in April 2021 and a total of US$8 million loan had been secured from the World Bank Group.

One can, therefore, infer that the money was indeed raised through public borrowing and should be paid back with interest when loan repayment is due. It is, therefore, the prerogative of government to ensure prudence on the public purse that the funds are used for the purposes for which they were sourced. Nothing is as painful as repaying a loan that one did not use as intended and the expected utility not realised. Loan repayments are an ‘intertemporal’ decision dynamic, the interest accumulated on the loans is consumption forgone in the future period just so we can finance our spending in the present period. I do believe it is the taxpayers interest to know how the funds were utilised as it limits the spending possibilities of their future tax Lilangeni.

Direct transfer to households

Post the period of political instability, the prime minister promised a cash injection to some 300 000 emaSwati. This is yet another striking promise that my mind just landed on and there is need to have a clear and transparent process and follow up processes. I have not heard wind of the distribution process and if there were any recipients of the funds. The fact that a promise was made and we hope that government followed through on the promise and the people got assistance. This was a step in the right direction, the economy needs a demand side boost to surge aggregate demand and thaw the economy towards growth. The promise made had a resource allocation backing, and non-delivery has a direct bearing on resource reallocation and the consequences of resource re-alignment.

Consequences of resource re-allocation

Excessive resource re-direction may be problematic. Owing to the competing national priorities, resource re-direction may be necessary, however, in excess it is not a good thing. Excessive re-alignment is problematic, it points to poor planning. It poses challenges in the attainment of fiscal prudence. Also excessive resource re-allocation opens up avenues for corruption, it becomes difficult for the controlling officer to have clear oversight on the funds, and thus the checks, balances and controls are grossly compromised in the process. The impact of over reliance on donor aid can also have negative impact on the economy if not well managed. The fact that one has a jab in one’s arm reduces the personal propensity to follow up on the use of the E200 million. This lack of active citizenship cultivates a culture of complacency and weak domestic institutions, which are malleable to the forces of corruption and other ill vices of the economy.

A call to action

The concerted efforts of the current government to spur economic growth and thriving for private sector led growth. Fiscal prudence is also at the core of the incumbent government’s agenda, this is also commendable. Accountability is a crucial component of financial prudence and, therefore, this call to action is in line with the strategic pillars of the sitting government. We call on the Finance Ministry to show us the money. Transparency is ever more critical in these current times of austerity, it helps garner public support for the belt tightening course that government often calls for. If we know we are all in the same plight it makes it easy to deal with the austerity measures at individual level.

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