Swaziland is predicted to have a budget deficit of nearly E2-billion next year, even though this year a surplus of E200-million is forecast.
The deficit raises doubts about how much Swaziland can rely on Southern Africa Customs Union (SACU) receipts, according to the Swazi Media Commentary blog.
In his budget speech last month, Majozi Sithole, the Swazi finance minister, announced that there was expected to be a surplus in the budget of E200-m. This, he said, was because there would be a bumper harvest from the SACU receipts and Swaziland would collect about E7.1-bn in 2012/13. This is up from the E2.9-bn Swaziland got from SACU in the financial year just ended.
The SACU money for 2012/13 accounts for about 60% of all Swaziland's income for the year.
The announcement raised a few eyebrows, because the SACU receipts Swaziland gets are dependent on the amount of trade being done in the Southern Africa region, especially through SA. But trade has been sluggish, not buoyant, and predictions are that things will not improve substantially in the foreseeable future.
