Home | News | GOVT DEFICIT E1.79 BILLION

GOVT DEFICIT E1.79 BILLION

Font size: Decrease font Enlarge font

 
MBABANE – Government is facing a severe liquidity crunch.


This bombshell was been dropped by the Minister of Finance, Martin Dlamini, who said government’s cash flow position was in a deficit of approximately E1.79 billion.    


This figure was revealed in the ministry’s first quarter performance report for the financial year 2017/2018, which was tabled by the minister in the House of Assembly on Monday.


The report states that government’s cash flow position had become a cause for concern in the recent past and as such, at the end of the quarter (June 30), government was faced with the crunch.


“Preliminary estimates indicate that government’s cash flow position is in a deficit of approximately E1.79 billion by the end of the quarter,” the report reads.


The report, which is yet to be debated states that the total recurrent spending amounted to E3.3 billion of the overall annual budget allocated, which amounted to 22.5 per cent.
The ministry said this was roughly in line with expectations, but it was expected to increase once all payments for already committed expenditures had been made.


“Planned spending amounted to E3.4 billion for the quarter and actual spending, including amount requested for early release, became E3.3 billion,” according to the report. The ministry said along with relevant stakeholders, who included the Central Bank and the Treasury Department, executed the responsibility of cash flow for government.

Comments (0 posted):

Post your comment comment

Please enter the code you see in the image: