MBABANE – Domestic revenue collection reached E8.2 billion at mid-year, representing 47 per cent of the E17.5 billion projected for 2026/27, as improved tax administration lifted collections above the previous year’s level.
Minister for Finance Neal Rijkenberg disclosed this when presenting the 2026/27 Mid-Year Budget Review Statement in Parliament, reporting that domestic revenue had increased from E7.7 billion collected during the corresponding period of the previous financial year.
He attributed the improvement to efficiencies in revenue collection implemented by the Eswatini Revenue Service (ERS), reflecting progress in Government’s efforts to strengthen domestic resource mobilisation.
The increase in domestic collections comes at a time when Government is seeking to restore fiscal sustainability amid mounting expenditure obligations, rising public debt servicing costs and uncertainty surrounding revenue from the Southern African Customs Union (SACU).
According to Rijkenberg, grants received during the first half of the financial year amounted to E201 million, significantly higher than the E85 million recorded during the same period last financial year.
He said the increase was mainly attributable to higher disbursement rates from development partners.
SACU receipts, however, continued to constitute a major component of Government revenue, reaching E5.9 billion at the half-year mark, compared to E5.2 billion collected during the corresponding period in the previous financial year.
For the 2026/27 financial year, total SACU receipts are projected at E11.7 billion, slightly above the E10.4 billion recorded in the previous financial year.
Despite the increase, the minister cautioned that SACU revenues remained volatile and externally determined, posing a risk to the country’s fiscal stability.
The country’s dependence on these transfers makes government revenue vulnerable to developments within the regional customs union, particularly changes in South Africa’s economic performance, imports and the overall customs revenue pool.
Rijkenberg emphasised the importance of broadening the domestic revenue base to reduce exposure to external shocks and strengthen the country’s ability to finance public expenditure.
