Background
The Minister of Finance Majozi Sithole presented the Kingdom of Swaziland's 2004 budget to parliament on 24 March. It is his fourth budget. An important theme was that the country has limited resources available to address the major challenges of the HIV/Aids pandemic, the high incidence of poverty and unemployment.
Highlights
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Economic growth of 2.5% is expected in 2004. The IMF forecast is lower at 1.6%.
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A new Revenue Authority will be established, combining several departments into one, to streamline tax collection and improve efficiency.
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Personal income taxes will be revised in the coming year.
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The tax exemption threshold for lower income taxpayers was increased from E14 000 to E20 000. Tax benefits to retrenched workers have also been adjusted.
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Expenditure growth has outstripped revenue growth and drastic measures are needed to reverse the trend. The widening budget deficit is unsustainable.
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Public debt is increasing as result of the rising budget deficit, but it is not at unsustainable levels.
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Value added tax (VAT) will replace sales tax in 2006/07.
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South African rand notes have been made legal tender in Swaziland, reinstating a compensation agreement between the central banks.
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