Mbabane- The Ministry of Agriculture recorded an expenditure of over E206 million for the second quarter, significantly exceeding its budget and triggering a comprehensive review of financial controls and procurement processes. The substantial overrun was primarily attributed to the unutilized expenditure and carry-forward of funds on certain commitments due to delays in project implementation, challenging the ministry’s overall conservative spending pattern.
The ministry’s second-quarter performance report showed substantial variances across key areas. Despite the overall overspending, there was significant under-expenditure in critical categories, which was seen by some as indicative of improved efficiency but also pointed to operational bottlenecks.
A large portion of the expenditure relates to Personnel Costs, which amounted to E96.03M, accounting for almost 46% of the total spending. However, the report noted that E60.01M (38%) of the funds released for salaries and allowances remained unutilized, signaling delays in payments or filling vacant positions.
The ministry spent only E6.35M for CTA Vehicle Charges for fuel, vehicle maintenance, and long-term hire, leaving E14.42M unspent. Similarly, Travel, Transport & Communication only utilized E5.53M, with 34% of the released funds remaining unutilized. The ministry had also spent only E1.86M on Consumable Materials, which includes seeds and fertilisers, leaving an outstanding balance of E21.47M.
Conversely, the External Grants category recorded a significant overrun of approximately E31.03M, highlighting a major commitment to parastatals and affiliated agencies for agriculture development, research, and food security.
In response to the financial challenges, the ministry is stressing the immediate need to strengthen operational and clerical processes in personnel management, grants, and service delivery support. Moving forward, the ministry’s analysts have suggested a comprehensive Moving Forward Analysis strategy to ensure that all rollout and subsequent programmes are secured and service delivery targets are consistently met.The ministry remains committed to improving financial governance and diversifying revenue streams to enhance self-sustainability.
The Ministry of Finance has already authorized additional commitments totaling E208.99M to improve expenditure performance in the next reporting cycle. The general operating expenditure during the review was E349.47M, including contributions from holding companies and fees collected from cattle dipping services. These efforts, according to ministry officials, are essential to ensuring that the financial processes are managed effectively and that the agricultural sector’s crucial development goals are not jeopardized.
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