Times Of Swaziland: GOVT REVENUES COLLECTION UP 3.1% IN Q2

GOVT REVENUES COLLECTION UP 3.1% IN Q2
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Nhlanganiso Mkhonta on 29/10/2024 07:34:00


MBABANE - Government revenues reflected a 3.1 per cent increase in the second
quarter of 2024, relative to the second quarter of 2023.
According to the quarterly economic bulletin, the second quarter running from
April to June 2024, driving the increase were an 11.2 per cent increase in the
Southern Africa Customs Union (SACU) receipts; a 2.1 per cent increase in
value-added tax (VAT); and a 4.9 per cent increase in Pay As You Earn (PAYE). 
Corporate tax, on the other hand, contracted by 59.1 per cent due to base
effects. On execution, government expenditure declined by 6.7 per cent in 2024
Q2, compared to 2024 Q1. This decline was primarily due to a 28.3 per cent
contraction in both external and internal transfers.  Other expenses, however,
reflected an increase and these included ‘compensation of employees’,
‘goods and services’, and ‘capital expenditures’.
Reserves
Meanwhile, the stock of gross official reserves was recorded at E8.030 billion
in 2024 Q2, increasing by 2.4 per cent relative to 2024 Q1. The domestic
reserves were enough to cover 2.1 months of imports.  In the period, the
reserves benefitted from an increase in the net inflow of Rands from trade with
local banks, as well the quarterly deposit of SACU receipts in April 2024.
During the period under review, Lilangeni gained strength when paired against
all the major trading currencies (i.e. the US Dollar, British Pound and the
Euro) in 2024 Q2 compared to the previous quarter. During this period, the
Lilangeni appreciated by 1.9 per cent against the US Dollar, averaging E18.51
per US Dollar in 2024 Q2 relative to E18.88 per US Dollar in the previous
quarter.
Against the British Pound, the Lilangeni appreciated by 2.3 per cent, averaging
E23.38 per British Pound in the quarter under review, compared to E23.93 per
British Pound in the preceding quarter. Similarly, against the Euro, the local
currency strengthened by 2.8 per cent, and traded at E19.92 per Euro on average
relative to E20.50 per Euro in the previous quarter.  These developments were
mainly driven by improved global investor sentiment on the South African
post-election negotiations, which have proceeded peacefully, thus offering
stability to the economy.