BY MBONO MDLULI
LOBAMBA – The national budget for the fiscal year 2025/26 has seen a significant increase, rising from E29.4 billion in the 2024/25 financial year to E32.61 billion. This was announced on February 14, 2025, during the Budget Speech delivered by Minister of Finance Neal Rijkenberg in the House of Assembly.
The minister presented a comprehensive 49-page budget speech over two hours in a fully packed assembly. The session was attended by Members of Parliament (MPs), government officials, private sector managers, parastatal representatives, senators, educators, and students from various schools who gathered to learn about the government’s financial plans for the coming year.
Breakdown of the 2025/26 Budget
- Total Revenue and Grants: E29.72 billion
- Appropriated Recurrent Expenditure: E22.25 billion
- Appropriated Capital Expenditure: E7.25 billion
- Total Expenditure: E32.61 billion
- Fiscal Deficit: E2.88 billion
Revenue and Grant Projections
Minister Rijkenberg stated that government revenue, excluding grants, is projected to reach E29.14 billion in the 2025/26 financial year, accounting for 30% of GDP. This represents a 7.6% increase compared to the previous fiscal year.
Despite a decline in Southern African Customs Union (SACU) receipts from E13.07 billion to E10.40 billion, the budget factors in E11.40 billion by withdrawing E1 billion from the SACU stabilization fund. On the other hand, non-SACU revenue is anticipated to grow by approximately E2 billion, bringing the total to E17.72 billion. Of this, E16.72 billion will be generated through taxation, while E1 billion will come from non-tax revenue sources.
Grants and International Contributions
Total grants for the 2025/26 financial year are set at E585.27 million, reflecting an increase from the E492.20 million allocated in 2024/25. The minister attributed this rise to contributions from international partners, including:
- E80 million from the International Development Association (IDA) – World Bank for clean energy access transformation.
- E51 million from the Japan International Cooperation Agency (JICA) for the construction of four secondary schools in different regions.
- E237 million from the Republic of China (Taiwan) to support various national development projects.
Taxation and Revenue Growth
Income tax collection is expected to increase from E7.97 billion in 2024/25 to E9.05 billion in 2025/26, primarily due to a 23.6% rise in corporate income tax. Personal income tax is also forecasted to grow by 10.3%, reaching E5.80 billion.
Taxes on goods and services, excluding SACU receipts, are projected to increase by 14.1%, rising from E6.65 billion to E7.58 billion. The minister highlighted a 15% increase in Value Added Tax (VAT) from E5.09 billion to E5.85 billion. Similarly, fuel tax revenue is expected to grow from E1.36 billion in 2024/25 to E1.43 billion in 2025/26, reflecting a 4.5% increase.
Expenditure Overview
The total government expenditure for the 2025/26 financial year is projected at E32.61 billion, excluding the public debt redemption of E4.44 billion. The appropriated recurrent expenditure stands at E22.25 billion, reflecting a 9.9% increase from the previous year. Additionally, capital programme allocations have increased by 14.4% to E7.25 billion.
One of the notable components of the budget is the public servants’ wage bill, which is set to rise to E10.48 billion in the 2025/26 financial year, up from E9.80 billion in 2024/25. The government has allocated E500 million for anticipated salary reviews and potential wage increases.
Conclusion
The 2025/26 national budget reflects the government’s efforts to enhance revenue collection while prioritizing key sectors such as education, clean energy, and infrastructure development. Despite a decline in SACU receipts, the government has introduced measures to stabilize revenue streams, ensuring fiscal sustainability. With a focus on economic growth, public services, and development, this budget sets the stage for Eswatini’s financial direction in the upcoming fiscal year.
(Pic: Ntokozo Magongo)
