Eswatini leaves 56 per cent of capital budget unspent at mid-year
Government spent E3.4 billion of its E7.8 billion capital allocation by the end of September, with project execution at 44 per cent.
Eswatini's government had E4.4 billion left from its capital budget at mid-year, according to the Mid-Year Budget Review. Capital expenditure stood at E3.4 billion against an approved annual allocation of E7.8 billion, leaving 56 per cent of the budget unexecuted by the end of September.
The Ministry of Finance acknowledged the need to turn allocations into timely projects and value for money. The review says the 44 per cent execution rate is a slight improvement on the same period last year, which government credits to faster project implementation and stronger monitoring. Tight cash flow conditions are also cited as a constraint across line ministries.
The ministry expects spending to pick up in the third and fourth quarters, as it usually does in the second half of the financial year. It projects capital spending to fall by an average of 5.2 per cent over the medium term, as major projects including the Mkhondvo-Ngwavuma Water Augmentation Project and the MR14 road project reach completion.
Why it mattersContractors and ministries delivering infrastructure projects face a deadline to spend the remaining E4.4 billion before the financial year closes.