Commerce minister explains 16% budget allocation decrement

MBABANE – Following an overall budget decrease of 16.63 per cent to the Ministry of Commerce, Industry and Trade, it’s not all doom and gloom at the ministry.

The ministry was allocated a recurrent expenditure of E127 779 121 and capital expenditure of E184 443 000 for the financial year 2023/24, while the figures were E126 088 857 and E307 389 450 for the financial year ended March 31, 2023, which depicts an overall budget decrease of 16.63 per cent.

Explaining the decrease in the budget allocation, Minister Manqoba Khumalo said the ministry’s budget in the medium term was informed by pillars which included efficiency and effectiveness at the ministry; expansion of trade, industry and investment; inclusive entrepreneurship development of SMME’s and informal sector and improving the business environment.

He shared that government expenditure was characterised by the recurrent budget and the capital budget.

“It follows suit that the current year budget totalled E374 493 868 and next year’s planned budget is at E312 222 121. Given the two types of expenditure, the recurrent budget has increased by eight per cent while the capital budget has decreased by 28 per cent which gives an overall budget decrease of 16.63 per cent,” he said.

Projects

Khumalo said the capital expenditure was decreasing because capital projects, which commenced last financial year, 2021/22 and this financial year 2022/23 had reached the final stages.

“In that regard it was envisaged that their uptake in resources should scale down. Most of the projects will come to an end next financial year and it is expected that we shall then pay retentions.

Notwithstanding the political policy that we should revert to the construction of 10 factory shells per annum. The ministry will commence the concept note for these factory shells and thereafter follow on the capital planning and budgeting procedures in effecting the policy,” he explained.

Distributed

In the financial year ended March 31, 2023, the approved capital budget for the ministry was at E307 389 000. The amount was distributed among five projects: Construction of factory shell, Rehabilitation of National Hand Craft Training Centre and MarketAccess and Trade Facilitation, enhancing Junior Achievements Eswatini capacity phase II, youth cooperatives capacity building.

On the other hand, Khumalo said the recurrent budget had increased by eight per cent.

He stated that this budget had been directed to programmes that would create or increase revenue streams in government’s parastatals, promote market share in the local products and realise efficiencies in the ministry’s operations.

Meanwhile, in the ministry’s annual performance report for the year ended March 31, 2023, the minister explained that his ministry had continued with its task of the development and growth of the economy through business activities despite the current fiscal challenges the country faces.

He said the ministry would continue to manoeuvre through these challenges to ensure continued achievements of the key performance areas, particularly those that needed urgent improvement.

He voiced out his delight that the Economic Recovery Strategy (ERS) was taking form as they were observing a private sector-led economy whereby companies had engaged in expansionary and innovative programmes.