Majozi orders 14% budget cuts

MBABANE – Government has ordered all line ministries to decrease their budget proposals for the year 2009/10 by at least 14 per cent in light of the national revenue crisis.
The implication is that if last year’s budget of E11 billion was the scale for this year, then the budget could come down to E9.5 billion.

A circular sent to the ministries and departments by the Finance Ministry states that the decrease was necessitated by the impending budgetary crisis caused by major shortfalls in revenue.
Most of the government ministries have already submitted their proposals indicating the shortfall whilst a few were expected to make submissions before the end of this week.

Finance Minister Majozi Sithole confirmed that ministries had been ordered to reduce their budgets by 14 per cent, saying this is because of the shortfall in revenue.
“You will also recall that the PM said spending should be curtailed this year, given the envisaged crisis. We could have reduced by any figure but the 14 per cent was reasonable, given the circumstances,” he said.

Asked if the reduction would be fair, taking into account the obligation and commitments made by some ministries to the public, Sithole said the ministries were free to explain why they felt they were justified to make proposals that do not heed the 14 per cent reduction order.
“After they have made their proposals, we will make our own assessment to see if they are justified. Otherwise no ministry will be an exception to the order.”

The minister said today was the last day for the ministries to submit their budget proposals.
It is expected that the order will be an inconvenience to ministries such as Education and Training, Health as well as Public Works and Transport and others.
The Ministry of Education has an obligation to implement the free primary education this year; take care of the OVC fund; build mobile classrooms and hire more teachers.

The Ministry of Health is currently struggling with a shortage of drugs and to ensure the health budget meets the Abujah Declaration – that it should be over 15 per cent of national budget.
The Ministry of Public Works has to repair infrastructure that was demolished by the recent storm, especially public roads.

...we can’t - Education Ministry

MBABANE - The ministry of Education and Training is one of the few ministries that have already asked to be made an exception to the 14 per cent reduction order.

Principal Secretary Pat Muir said his ministry’s expenditure would be laden with the free primary education and other essentials, hence the request.

“We have presented to the Public Budget Committee (PBC) and stated why we were not able to meet the 14 per cent reduction order.”

Meanwhile, Health PS Dr. Stephen Shongwe said his ministry was finalising the budget proposal but said: “We are hoping to meet the 14 per cent order.”