The ministry of finance has been allocated a budget of over E954 million for the financial year 2025/26.
According to the ministry’s first quarter report for the current year, over E233 million was released by the first quarter.
The report stated that the expenditure for the first quarter stands at E223 937 277 which is the sum of actual expenditure and committed funds.
Highlighting a brief summary of the re-current expenditure per control item, the Central Transport Administration (CTA) charges were at 78 per cent, comprising of activities related to vehicle expenditure within the ministry of finance.
The high percentage variance, the report said reflected the minimal usage of released funds at this time of the year, this in essence meaning that they were still within the budget allocation and need to improve the absorption rate.
Under the personnel cost and allowances, 53 per cent was spent according to the report and close analysis of the incurred expenditure reflected a fairly budgeted control item.
The report stated that the variance of 52.88 per cent implied that the overall expenditure would be within the annual budget allocation by the financial year end.
“This expenditure level reflects an absorption rate of 95.91 per cent of the released budget,” states the report.
Adding, the travel, transport and communication expenditure stood at 18 per cent. The funds according to the report were reserved for subsistence allowances, external travel expenses and communication costs.
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The variance, was at 17.72 per cent under the above control item during the reporting period which reflects a huge expenditure.
This, the report said was due to the number of official external trips undertaken by the ministry’s officials and the item was not sufficiently budgeted which was evident from the effected re-allocations in order to ensure that statutory meetings were attended.
Professional and special services expenditure was at 64 per cent and the control item was used to cover expenditure related to security services, reports printing, utility bills, government gazettes, workshops and other professional services within the ministry.
The 64 per cent variance, according to the report meant that the ministry incurred minimal expenditure under the control item during the reporting period and the absorption rate was expected to improve in the second quarter of the financial year considering the planned activities. All expenditure will be aligned to the allocated budget.
The report further stated that there was no expenditure on the rentals; land, building and computer equipment items which reflects no activity at this time of the financial year.
Expenditure
The 100 per cent remainder of the expenditure was due to the fact that the ministry rents office space at the Central Bank of Eswatini and invoices for first quarter have not yet been captured for payment and the expenditure is expected to be confined within the allocated budget.
“Consumables and office supplies is at 91 per cent, this control item is reserved for the provision of consumable materials and office supplies for the effective and efficient running of the day-to-day operations of the ministry.
The reporting period reflects a very low absorption of the released budget. Durable materials and equipment remains at 100 per cent, it is yet to incur expenditure in the current financial year and the ministry is committed to spending within the annual allocated budget.
The allocated budget under internal grants and subsidies control item is normally transferred to subsidiaries benefitting within the ministry’s budget through grants. The transfers were carried out successfully during the reporting period and low variance. External grants and subsidies, the budget allocation is reserved for external subscriptions and payments to international organisations. The reporting item has not incurred any expenditure to date,” added the report.
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