Mbabane – Government’s cash flow position has improved following the receipt of Southern African Customs Union (SACU) revenue, allowing it to pay outstanding suppliers and set aside funds for the final instalment of the 2025 salary review for civil servants.
Minister of Finance Neal Rijkenberg disclosed this during the latest edition of Finance in Focus, saying the inflow of SACU funds had provided relief after months of financial pressure.
The government had used part of the money to settle invoices owed to suppliers, while ensuring enough funds were available to pay the final salary adjustment for civil servants on the next payday.
Although the cash flow position has improved, Rijkenberg said the government is still sourcing additional financing to cover funding gaps arising from this financial year’s budget and the previous supplementary budget.
He said discussions with financiers were progressing well and expressed confidence that the required funding would be secured before the end of July or during the first half of August.
The Minister also gave an update on tax legislation currently before Parliament. He said the proposed amendments are intended to close loopholes in the tax system and improve compliance, rather than introduce new tax rates.
“Our objective is not to raise taxes but to ensure that everyone who should be paying tax, including VAT, does so,” he said.
Rijkenberg said creating jobs remains central to increasing government revenue, as Pay As You Earn (PAYE) and Value Added Tax (VAT) account for the largest share of tax collections.
He said Eswatini currently collects more than E12 billion a year from PAYE and VAT, adding that revenue would increase if more people entered formal employment.
“I believe it’s almost a national responsibility for all of us to do whatever we can to help create jobs. Employment gives people dignity, supports families and provides the government with more resources to improve service delivery,” he said.
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