Central Bank of Ewsatini Governor Majozi Sithole


CBE Governor Majozi Sithole has cited Foreign Direct Investment (FDI), low growth projections and intensifying trade tensions as being the reason why the economy has stagnated. He said the budget strategy for 2019/20 therefore is focusing on fiscal consolidation, creating fiscal space through enhanced expenditure prioritization, allocative
efficiency and revenue mobilization. Delivering his annual monetary policy statement the governor said the overall balance for 2019/20 is projected to stand at minus E3.0 billion, equivalent to a deficit of 4.4 percent to Growth Domestic Product (GDP). “This depicts a slight improvement from the revised deficit of 5.4 percent of GDP projected for the end of 2018/19 financial year,’’ said the governor, adding that the actual budget outturn for 2017/18 reflects a deficit of minus E2.9 billion, translating to 4.6 percent of GDP. Total revenue for 2019/20 is projected
to reach E18.9 billion, making an increase of about 17 percent. Sithole said the increase is a result of the proposed revenue policies that are envisaged to be implemented during the 2019/20 fiscal year. These policy measures include amongst others: increase in fuel tax, implementation of Value Added Tax (VAT) on electricity and the increase in the marginal tax rate payable by income earners above E250 000 per annum from 33 per cent to 36
percent. While SACU receipts remain the largest contributor to government revenues, currently contributing 34 percent of total revenue, SACU contributions to total revenue is on a downward trend as VAT and Pay-AsYou-Earn
(PAYE) improve. “The increase in revenue is set to come from improvements in Eswatini Revenue Authority (ERA)
domestic collections and from the implementation of the new revenue measures,” said Sithole.

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