GOVT SHOULD STOP HIRING - MINISTER

MPs Jeremiah Ndwandwe, Mthokozisi Kunene, Sifiso Magagula and Sikhumbuzo Dlamini chat before the start of proceedings in Parliament.

LOBAMBA – Minister of Finance Martin Dlamini has said his colleagues in government should stop hiring in all sectors.

Dlamini, who presented his maiden Mid-Year Budget Report in the House of Assembly yesterday, further told his colleagues in all ministries and sectors to submit to the Public Service to close unused posts.

“For the remainder of this year, I urge my colleagues in every ministry to minimise hiring in all sectors and submit to Public Service to close unused posts,” said Dlamini.

This, after the minister had informed members of Parliament (MPs) that the wage bill in the country continued to be high.
“Estimated expenditure for 2014-2015, including the cost-of-living is expected to total E5.9 billion including pension contributions,” said Dlamini. The minister said this indicated an almost 12 per cent increase from the previous year.

Recently, it was reported that there were now over 40 000 civil servants.
Dlamini said as a result, a supplementary budget would reallocate the resources necessary to cater for the overexpenditure, but must be restricted to only the most essential items to avoid pressure in later years.

The minister said if the projected revenue risks materialised, government would, however, do everything possible to protect front line services in priority sectors such as health and education. Dlamini said many expenditure items were in need of reform and prioritisation.

“As a government, we cannot simply spend our way to higher rates of economic growths. We must make the changes and implement the controls required for the private sector to thrive in a stable fiscal environment,” said the minister.
Dlamini said, however, the 2014-15 budget was credible and that revenue and budgeted expenditure were broadly on target.

‘Kudos to SRA’

LOBAMBA – Finance Minister Martin Dlamini yesterday praised the Swaziland Revenue Authority (SRA), whom according to him, had once again exceeded expectations.

Dlamini told Members of Parliament (MPs) that the budget had estimated that in total E14.3 billion would be collected through taxes and other revenue sources and grants. “Our forecasts indicate that revenue collection may exceed the budget by around three per cent,” he said.
The minister said the bulk of the domestic revenues were around 78 per cent, which was collected through corporate tax, VAT and income taxes from individuals.

“Personal and other income taxes totalled E1.1 billion as at the end of September this year,” he said.
He further projected that they would raise E2.2 billion by the end of the year, which reflected an increase of seven per cent as compared to 2013-2014 financial year.

Dlamini said the higher projection followed a strong half yearly performance and larger returns at the end of last year.
He said since the introduction of Value Added Tax (VAT) in April 2012, Swaziland has had a fairer tax system where goods and services were taxed once.
“This year we project that VAT will raise E1.8 billion, a six per cent increase from 2013-2014,” he said. Dlamini said VAT collections amounted to E1 billion on a cash basis by the end of September 2014.
He said corporate tax totalled E500 million as of September 30, 2014 which they projected would rise to E1.1 billion overall.

SD to get E7.5bn from SACU

LOBAMBA – Swaziland, as expected, will receive E7.5 billion from the Southern African Customs Union (SACU) as budgeted this year.

This was revealed by the Minister of Finance, Martin Dlamini, when he delivered his maiden Mid-Year Budget Review Report in the House of Assembly yesterday. However, Dlamini told Members of Parliament (MPs) that Swaziland’s average growth rates continued to be lower than other SACU countries and that it should pursue a fiscal strategy based on available resources.

He said although the E7.5 billion was expected, SACU revenues were confirmed in December, so the projections were still very tentative. The minister said revenues were essential to fund the country’s recurrent expenditures, and investments were essential for the country’s growth.
“Swaziland’s efforts to diversify revenue resources away from SACU continue,” he said. He said around 56 per cent of total budgeted revenues were set to come from SACU receipts.

The minister said everyone had to ensure that collectively, the country was steered towards the path of stability and prosperity. He said the country needed to learn from the past, stating that government needed to be more prepared for SACU vitality in future, which was fundamental to any development progress.

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