Mbabane – The Ministry of Finance is facing cashflow pressures while implementing reforms to strengthen fiscal management, Finance Minister Neal Rijkenberg said today during updates on the Mid-Term Budget Review.
Rijkenberg reported that tax collections are improving, rising from $7 billion last year to $7.7 billion this year, thanks to broader compliance rather than higher tax rates. Despite this, the recent salary review has added strain on government finances, creating temporary cashflow constraints.
Relief is expected from two loans approved by Parliament and signed by His Majesty, with funds from the OPEC Fund and African Development Bank expected in the next two to three weeks to settle outstanding government obligations.
To curb over-expenditure for the remainder of the fiscal year, the ministry will implement strict budget controls to remain within the annual budget by the end of March.
The rollout of the Integrated Financial Management Information System IFMIS is central to reforms. Developed with Rwanda’s support, IFMIS will replace paper-based processes with a digital platform covering budgeting, procurement, and payments. The system tracks workflow deadlines, flags delays, and ensures transparency and accountability.
The government is also moving from cash accounting to accrual accounting, offering deeper insight into financial operations. The new system will be used for the 2026/27 budget, and ministries are submitting proposals under this platform.
Rijkenberg noted that next year’s budget will be tight due to salary increases, leaving limited room for additional spending. Ministries are expected to improve efficiency to accommodate planned growth within financial limits.
The budget process involves consultations with ministries, review by the Planning and Budget Committee, cabinet approval, and submission to Parliament before His Majesty’s sign-off to ensure a fully implemented digital system by April 1.
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