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Showing posts with label International Budget Partnership. Show all posts
Showing posts with label International Budget Partnership. Show all posts

Wednesday, 6 March 2019

Not enough information on Swaziland budget made available to public, U.S. Govt reports

Swaziland /eSwatini should open up its national budget for greater scrutiny. It is not always clear how money is allocated, the latest review of ‘fiscal transparency’ in the kingdom, published by the United States Government reveals.

It says not all of the budget is subjected to audit and oversight. Spending by King Mswati III, the absolute monarch, and his royal family should be scrutinised.

The U.S. Department of State 2018 Fiscal Transparency Report reviewed the year 2017. It said that while budget documents ‘provided a general picture of government revenues and expenditures, revenues from natural resources and land leases were not included in the budget. Expenditures to support the royal family were included in the budget but lacked specific detail and were not subject to the same oversight as the rest of the budget.’

It added, ‘Information in the budget was considered generally reliable.’

In Swaziland King Mswati controls natural mineral rights. He holds 25 percent of mining royalties ‘in trust’ for the Swazi Nation. The government also takes 25 percent. The Fiscal Transparency Report stated, ‘Criteria and procedures for awarding natural resource extraction licenses and contracts were outlined in law, but the opacity [lack of clarity] of the procedures, which involve submitting applications for licenses directly to the King, cast doubt on whether the government actually followed the law in practice. 

‘Basic information on natural resource extraction awards was not always publicly available. 

‘eSwatini’s fiscal transparency would be improved by providing more detail on expenditures and revenues in the budget, particularly for off-budget accounts, natural resource revenues, land leases, and royal family expenditures; subjecting the entire budget to audit and oversight; demonstrating applicable laws are followed in practice for awarding natural resource extraction contracts and licenses; and making basic information on natural resource extraction awards publicly available.’

The United States releases annual reports on fiscal transparency for countries that receive U.S. assistance to ‘help ensure U.S. taxpayer money is used appropriately’. It said Swaziland had shown no improvement in fiscal transparency since the last report in 2017.

The United States is not alone in expressing concerns about the lack of information on Swaziland’s national budget.

In 2017 Swaziland received a score of three out of a possible total 100 for budget openness. It received zero points in a section on public participation as there were no opportunities for the public to engage in budget processes. The Transparency Open Budget Survey was produced by the International Budget Partnership (IBP). The 2017 report is the most recent available. 

In an 80-page report IBP revealed that the Swaziland members of parliament provided weak oversight of the budget. In Swaziland political parties are banned from taking part in elections and the Prime Minister, Cabinet and top judges and public servants are all chosen by the King.

IBP said the Swazi parliament was unable to discuss the budget properly because it was not provided with sufficient information. It said the government’s budget proposal should be available two months before the start of the budget year.

See also

Swaziland budget repeats failed economic policies of the past
Swaziland Finance Minister threatens public sector job cuts if workers don’t back his budget
Gap between rich and poor in Swaziland continues to grow, Finance Minister reports

Tuesday, 6 March 2018

MPS SEND BUDGET BACK FOR REVIEW

Members of Parliament in Swaziland have sent the national budget back to be reviewed because they say it does not meet the needs of poor people and rural communities.

The budget announced on Thursday (1 March 2018) included an increase in Value Added Tax by 1 percent to 15 percent and a review to impose VAT on electricity prices for the first time. Electricity tariffs are already due to increase by 15 percent on 1 April 2018.

MPs also said that the budget did not adequately finance Micro Projects and the Regional Development Fund (RDF).

The Swazi Observer reported on Tuesday (6 March 2018), ‘The legislators agreed that the Minister of Finance should go back and review the budget together with the House of Assembly Finance Sessional Committee and the House of Assembly Finance Portfolio Committee. The reviewed budget is expected to be tabled by the minister tomorrow in the House of Assembly.’

The call for review is not unusual in Swaziland. Last year members of the House of Assembly initially rejected the budget, but then Swaziland’s unelected Prime Minister Barnabas Dlamini forced them to overturn their decision.

He also forced them to abandon a debate on the contents of the budget in the House of Assembly and instead move discussions straight to committee sittings.

Swaziland is ruled by King Mswati III, sub-Saharan Africa’s last absolute monarch. Political parties are banned from taking part in elections and the Prime Minister and senior ministers are selected by the King.

The Swazi Observer, a newspaper in effect owned by the King, reported at the time that the Prime Minister ‘minced no words’ then he told Parliament ‘that nothing would be changed in the budget’.

The newspaper, described by the Media Institute of Southern Africa in a report on media freedom in the kingdom, as a  ‘pure propaganda machine for the royal family’ reported the MPs ‘came back to their senses’ and allowed passage to the Budget Bill.

There are ongoing concerns about the ways national budgets are made in Swaziland. In a review of the 2016 Swaziland budget, the US State Department found details were missing about how money given to the Royal Family was spent. Also hidden was detailed information about spending on the military, police and correctional services.

The United States undertakes annual reports on ‘fiscal transparency’ of governments that receive US assistance to ‘help ensure US taxpayer money is used appropriately’.

In 2017, Swaziland scored only three points out of 100 in a global review of its budget in the Transparency Open Budget Survey produced by the International Budget Partnership (IBP).

While Swaziland scored three points, neighbouring South Africa scored 89. In an 80-page report IBP revealed that the Swaziland legislature provides weak oversight of the budget.

IBP said the Swazi parliament was unable to discuss the budget properly because it was not provided with sufficient information. It said the government’s budget proposal should be available two months before the start of the budget year.

See also

HOSTILE REACTION TO VAT INCREASE
BUILDING HOTEL A BUDGET PRIORITY
CABINET DEFIES KING OVER BUDGET
SWAZI BUDGET GIVES PM NEW HOUSE
SWAZI MPs REJECT NATIONAL BUDGET
KINGDOM GETS 3/100 ON BUDGET TRANSPARENCY

Tuesday, 30 January 2018

KINGDOM GETS 3/100 ON BUDGET OPENNESS

Swaziland scored a mere three points out of 100 in a global review of its budget transparency.

The kingdom ruled by King Mswati III as sub-Saharan Africa’s last absolute monarch received zero points in a section on public participation as there were no opportunities for the public to engage in budget processes.

The scores are revealed in the 2017 Transparency Open Budget Survey produced by the International Budget Partnership (IBP).

While Swaziland scored three points, neighbouring South Africa scored 89.

In an 80-page report IBP revealed that the Swaziland legislature provides weak oversight of the budget. In Swaziland political parties are banned from taking part in elections and the Prime Minister, Cabinet and top judges and public servants are all chosen by the King.

IBP said the Swazi parliament was unable to discuss the budget properly because it was not provided with sufficient information. It said the government’s budget proposal should be available two months before the start of the budget year.

The IBP collaborates with civil society around the world to use budget analysis and advocacy as a tool to improve effective governance and reduce poverty.

This is not the first time that budget transparency in Swaziland has been criticised. The United States State Department in its annual Fiscal Transparency Report regularly points out the kingdom’s deficiencies. In its 2017 report it said, ‘Swaziland’s fiscal transparency would be improved by: providing more detail on expenditures and revenues in the budget, particularly for off-budget accounts, natural resource revenues, and royal family expenditures; subjecting the entire budget to audit and oversight; demonstrating applicable laws are followed in practice for awarding natural resource extraction contracts and licenses; and making basic information on natural resource extraction awards publicly available.’

See also

GOVT BREAKS OWN LAW ON SPENDING
SWAZILAND: MASSIVE SECURITY SPENDING
SWAZI MPs REJECT NATIONAL BUDGET