Times Of Swaziland: MID-TERM BUDGET REVIEW:  E3.1BN FOR  SALARIES,  HIRING, OTHERS

MID-TERM BUDGET REVIEW:  E3.1BN FOR  SALARIES,  HIRING, OTHERS
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Stanley Khumalo on 14/11/2024 15:19:00


MBABANE – Government is set to allocate approximately E3.1 billion for
salaries, hiring of new employees within the civil service and goods and
services.
This figure represents the difference between the projected recurrent
expenditure budget of E26.2 billion for the 2025/26 financial year and the E23.1
billion earmarked for the 2024/25 financial year. This will result in the next
national budget increasing from E29.4 billion to E32.8 billion. The difference
is an independent calculation by this publication, as the minister of Finance,
Neal Rijkenberg, did not mention the amount to be allocated to the salary review
exercise.
It is worth noting that a consultant is currently engaging civil servants as
part of data collection for reviewing their salaries in the next financial year,
if the exercise shall be completed by then. There are over 43 751 civil
servants, according to the Establishment Register that supports the Estimates of
Public Expenditure for the 2024/25 financial year. It states that there are
currently 40 096 graded civil service posts alongside an additional 3 655
ungraded positions.
In his mid-term budget review presented yesterday, Rijkenberg projected that
total expenditure is expected to reach E32.8 billion in the upcoming financial
year, with E26.2 billion designated for recurrent spending and E6.6 billion for
capital expenditure. He attributed these projections to various assumptions,
including inflation rates for goods and services, the implementation of a salary
review, a two per cent employment growth rate and the ongoing execution of major
projects such as the Mkhondvo-Ngwavuma 1A and 1B initiatives.
The minister also provided details on future projects, which will include the
construction of a new parliament building, water projects in Manzini and
Shiselweni, the International Convention Centre, and five-star hotel (ICC
&FISH).
Addressing the increased recurrent expenditure, he noted that the total
expenditure for the 2024/25 financial year is budgeted at E29.4 billion,
representing 33 per cent of gross dometic product (GDP), with E23.1 billion
allocated for recurrent expenditure and E6.3 billion for capital expenditure.
Rijkenberg informed Parliament that expenditure trends are aligning with
mid-year expectations, revealing that E13.7 billion, equivalent to 15.3 per cent
of GDP, had been committed against a budget of E29.4 billion, indicating an
execution rate of approximately 46 per cent. He highlighted various execution
rates, stating that the wage bill accounts for E4.8 billion against a budget of
E9.8 billion, representing about 49 per cent execution, while goods and services
accounted for E1.5 billion against a budget of E4 billion, at 38 per cent
execution.
Interest
Transfers were noted at E2.3 billion against a budget of E4.5 billion, achieving
a 51 per cent execution rate, and interest payments reached E1.25 billion from a
budget of E2.3 billion, indicating a 54 per cent execution rate. Looking to the
future, Rijkenberg forecasted that total expenditure for the 2025/26 financial
year would reach 35.8 per cent of GDP, with recurrent expenditure at 27 per cent
and capital at 8.8 per cent of GDP. He attributed these increases to
inflationary pressures affecting goods and services, as well as the wage bill
due to the anticipated salary review.  He remarked: “The personnel costs
remain high, particularly due to government granting a four per cent
cost-of-living adjustment (CoLA) and ongoing hiring in the education and health
sectors.”
He further indicated that purchases of goods and services are expected to grow
at an average rate of eight per cent over the medium term, potentially averaging
E5 billion. The minister noted that recruitment activity during the first six
months of the 2024/25 financial year primarily focused on contract teachers
within the Ministry of Education and Training, with no recruitment reported in
the security forces. The mid-term financial statement underscores that the wage
bill remains a significant area of expenditure and is expected to continue
rising, presenting ongoing challenges for sustainable budget management.