世界银行-斯威士兰公共财政审查_利用财政调整取得更好的发展成果（英）-2025_93页_7mb

Eswatini Public Finance Review: Leveraging Fiscal Adjustment for Better Development Outcomes

The Eswatini Public Finance Review provides a comprehensive analysis of the country's fiscal challenges and opportunities for reform. Below is a detailed summary of the findings and recommendations.

1. Macro-Fiscal Context

Key Findings

• Eswatini's economy has grown at an average of 2.8% since 2010, below the regional average. Growth rebounded post-pandemic to 5.3% in 2020–23.
• Public debt reached 40.4% of GDP in 2023, though declining from a peak of 45% in 2022. SACU revenues contribute significantly to volatility in fiscal deficits.
• Revenue mobilization remains a challenge, with domestic revenues averaging 15–25% of GDP, below peer countries. High tax evasion, distortive tax policies, and inefficient tax administration are major constraints.
• The public wage bill (10–11% of GDP) crowds out spending on social sectors, while SOEs impose a substantial fiscal burden (3–4% of GDP).

Policy Options

• Pathway 1: Strengthen fiscal policy for macroeconomic stability through revenue mobilization, expenditure smoothing, and fiscal consolidation.
• Pathway 2: Enhance market contestability by rationalizing tax incentives, improving tax administration, and implementing a high-net-worth individual tax unit.

2. Revenue Mobilization

Key Findings

• Tax gaps are significant: VAT (15–18% of GDP), corporate income tax (2–3% of GDP), and excise taxes (e.g., electricity, dairy) are underutilized.
• SACU transfers are volatile (averaging 7–16% of GDP) and complicate budget planning.
• Public revenue performance falls short of regional and aspirational peers, with tax productivity ranking low.

Policy Options

• Implement mandatory online tax filing and payment, introducing a property tax model.
• Boost VAT and corporate income tax by reducing exemptions and enhancing enforcement.
• Fully operationalize the Revenue Stabilization Fund to smooth SACU volatility and improve revenue predictability.

3. Expenditure Management

Key Findings

• Public expenditure is oversized (28–32% of GDP), with recurrent spending dominating and capital investment lagging.
• Inefficiencies in health and education spending limit development outcomes (e.g., high infant and under-five mortality rates).
• SOEs (49 entities) drain public finances, accounting for 3–4% of GDP in transfers and accumulating arrears (e.g., 2–3% of GDP).

Policy Options

• Strengthen budget preparation and execution through Treasury Single Account and IFMIS implementation.
• Reform public procurement and SOEs by eliminating redundancies, enhancing accountability, and reducing arrears.
• Improve public financial management (PEFA assessment pending) to bolster fiscal consolidation.

4. Public Investment Management

Key Findings

• Public investment averages 6–7% of GDP but executes weakly (e.g., 54–70% execution rates).
• Limited climate integration in project planning, despite 9% of GDP allocated to climate-related activities.

Policy Options

• Enhance project appraisal processes and link climate adaptation measures to infrastructure development.
• Streamline procurement for essential medicines and vitalize capital expenditure through robust oversight.

5. Health Expenditure

Key Findings

• Despite 7–9% of GDP on health, outcomes lag (e.g., life expectancy 60% despite spending above regional averages).
• Efficiency losses persist: personnel and medicines account for 54% of spending, yet human capital undermines health outcomes.
• Inequalities in access (regional and wealth-based) fail to align resources with outcomes.

Policy Options

• Adopt program-based budgeting to link spending to outputs; streamline supplementary budgets.
• Enhance supply-chain management and strategic purchasing for better value for money.
• Promote primary healthcare autonomy and standardized performance reporting at sub-district levels.

Conclusion

The review emphasizes that Eswatini’s development depends on implementing a comprehensive fiscal reform package, focusing on:

1. Fiscal consolidation via revenue enhancement and expenditure control.
2. Public financial management reforms.
3. Climate-resilient public investment and health system strengthening.
   These measures will stabilize the economy, improve human development, and support sustainable growth. Sustained commitment and collaboration among government agencies, civil society, and development partners are vital for success.