By Sizwe Dlamini
The Minister of Finance, Neal Rijkenberg, has emphasized the importance of involving more emaSwati in the preparation of the national budget.
The Minister was speaking during the latest session of “Finance in Focus,” and took the opportunity to unpack the budget process, shedding light on how economic indicators such as GDP influence the budget ceiling and fiscal planning.
The Minister notes that the goal is to create a budget that reflects the needs and priorities of the people.
“We want more and more input from the public, so by the time we finalize the budget, it aligns with what the people need and what they feel is very important,” he said.
This year, the Ministry of Finance has made a concerted effort to take the budget to the people. “We’ve started our engagements by meeting with Chiefs at the local level, Members of Parliament, and other stakeholders,” Rijkenberg shared.
The Minister also encouraged the public to engage through the Ministry’s social media platforms, where citizens can submit their suggestions and feedback. This inclusive approach ensures that the budget is more representative of the nation’s needs.
Rijkenberg further explained the process of creating a national budget.
“The process begins with a clear understanding of available resources,” Rijkenberg explained, “Before making a budget, it’s essential to know how much money we have. The first step is to assess revenue projections, including tax receipts and other sources of income, such as potential borrowing, while keeping debt-to-GDP ratios in mind.”
Once the Ministry has a clear sense of the fiscal parameters, the budget ceiling is determined and submitted to the Cabinet for approval. From there, the Ministry of Finance circulates the budget guidelines to other Ministries.
Rijkenberg explained that each Ministry has a solid understanding of its financial needs and priorities, such as ensuring education continues and progresses. Ministries present their proposals to the Budget Planning Committee (PBC), which is made up of representatives from the Ministry of Finance, the Ministry of Economic Planning and Development, and the Ministry of Public Service.
While Ministries may request more funds for urgent projects, the reality is that not all requests can be met. The Minister emphasized that the process involves tough decisions to prioritize the most urgent needs. “It’s always about balancing the budget and ensuring that we allocate resources wisely,” Rijkenberg noted.
Following the speech, Parliament takes its turn in scrutinizing the budget, with each ministry’s committee reviewing and refining their respective budgets. The House of Assembly and Senate carefully examine the budget before final approval. Once approved, the budget is gazetted, and the country has an appropriation budget in place for the upcoming fiscal year.
While the budget process is moving forward, Rijkenberg acknowledged the challenges faced in preparing this year’s budget.
“We’re a bit tight for time this year, mainly because there was a delay in receiving GDP figures,” he explained. These figures are crucial for determining the budget ceiling, and without them, the process cannot fully begin.
“We see what’s happening with electricity and water, and we know inflation is remaining stubborn,” Rijkenberg said. “We’re hoping that inflation will continue to decrease, but it’s already ticking back up. The budget will aim to address the most vulnerable sectors of society and help those facing economic pressure from rising costs.”
He also highlighted that certain external factors such as electricity prices set by Eskom, are beyond the control of the government.
“We can’t cushion all these costs because they’re driven by factors outside of our control, but we’ll do our best to manage and support the most vulnerable,” he added.