2025 A YEAR FOR IMPACT

AS Cabinet and the whole nation heed the ‘Nkwe’ directive from the throne, it is the most opportune for the decision makers to ride the ‘Nkwe’ directive for impact. The previous administration focused on getting the fundamentals in place, now we need to make impact. We need to put some money in the pockets of our people; we must not let the past 10 or so years of austerity be in vain. This year’s budget must contribute to this goal and put some money in the pockets of emaSwati. In order for the nation to feel the impact we need to focus on combating unemployment, combating corruption, combating income and wealth inequality and staying true to our national goal of fiscal prudence.

Unemployment

Unemployment is one of the binding constraints to the country’s progress. If we target unemployment, indirectly we will be tackling the problem of poverty and wealth in equality. Though, the problem of wealth inequality will have to be solved directly if we are to succeed. The finance minister must follow in the footsteps of Minister Gondongwana and dedicate a budget for unemployment. This fund should be used to target innovative solutions to our unemployment problem as a country. Also, we need to support local businesses to grow to a level where they create potent jobs for the people of Eswatini. To attain this goal we need to operationalise the investor policy and the Citizen’s Empowerment Bill, ensuring that local businesses also get to benefit for the preferential arrangements received by international investors. I would expect the upcoming budget to include an allocation towards these initiatives.

Also, I would expect that arrears to the private sector be paid up before the current fiscal year lapses and government should commit to pay the private sector on time going forward. This will ensure that the nation reaps the full multiplier effect from the investments. In essence it is imperative that we unlock the full potential of the private sector and ensure that it creates jobs.

Corruption

I lament that as a nation we are so nonchalant about corruption, the cancer has metastised and is eating at the very core of our society. May we at least try to change that this year, we need to allocate resources to strengthening the Anti Corruption Commission (ACC) and the State apparatus combating corruption. If I had it in my tentacles, I would really request a directive from the Crown to arrest and prosecute at least 10 high profile corrupt persons. This would send a message that we do mean business and we are no longer going to allow this cancer to eat at the core of our nation. Corruption enriches a few while contributing to the continued deprivation of our people, a case in point is exactly what is happening within the health sector and we are never ready for schools opening, yet we lose a lot of money to corruption. We cannot begin the era of mega projects without arresting corruption, otherwise we would be opening the flood gates for mega corruption.

Inequality

If we are to grow as an economy we need to address the problem of income and wealth inequality. Balanced growth can only be an outcome of balanced contributions, as it were the economy grows but the benefits are only felt by a handful of people, skewed contribution equates to skewed growth. I expect that this year’s Budget Bill should encapsulate a couple of tax reforms aimed at taxing the ultra-wealthy. This year can we leave vat and income tax unchanged and introduce wealth taxes, property taxes inheritance taxes and trust fund taxes. We need to find ways to tax the 20 per cent who control 80 per cent of the wealth and we need to tax them to the bone. The proceeds from those taxes should be appropriated towards social provision, transfer payments and infrastructure development.

Fiscal prudence

It is concerning to see the country’s debt to GDP stock hovering above the 40 per cent, it is concerning that it now seats at 40.7 per cent. I am particularly worried because Parliament approved the listing of the E4billion bond in the JSE and essentially, they left its utilisation to the discretion of the finance ministry and the central bank.
We run a risk of public debt burgeoning to 43 per cent since it will be difficult for the legislature to curtail the actions of the ministry, since the bill has already been passed.
Also, there are no set of rules on the allowable debt threshold in the country, it all depends on the discretion of the legislature and the finance ministry. We must make it law that public debt must not exceed 40 per cent of GDP.

Revenues must be appropriately forecast so that we are able to fund all our expenditure on time. The country also needs a dynamic revenue and expenditure forecasting system, the timelines for expected expenditures must tally with the inflow. Ensuring that all funds are received in time and spent appropriately without the need for reallocations and moving lines which opens us up for corruption. This budget must have funds for purchase of such a system.

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