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We need to hear of redemption plans

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ON October 7, 2022 Basotho had an opportunity to decide the future of Lesotho. They did by overwhelmingly voting for the newly formed Revolution for Prosperity (RFP). The party won 57 percent of Lesotho’s 120 seats, confirming it was Basotho’s preferred alternative to combat, amongst other things, the high unemployment rates, devastating poverty, rampant corruption, and alarming everyday cases of gruesome homicides. The time of campaign promises is over, and for the “mighty RFP” as its advocates refer to it, the moment has come to act; to deliver.

So far, it appears that the RFP is cruising smoothly towards the right trajectory; the cabinet of Lesotho’s 11th government is forthcoming about pressing challenges to our economy, as well as mitigating steps it intends to take.

Nonetheless, I should mention that the delivery of the Medium-Term Budget Review in December, was followed by distrustful comments on the free streets of social media.

The Review described the mid-year performance of the economy in reference to the 2022/2023 budget as well as changes that were made in response to emerging problems. However, numerous people stressed that they wanted to hear about redemption plans in lieu of being reminded of the sorry state our nation is.

Their grievances of course, are valid when we begin to contextualise the numbers. Behind every unemployment statistic are university graduates with grim futures and parents who are unable to provide for the fundamental necessities of their children.

Behind every corruption scandal are deserving Basotho who are denied a chance because of nepotism, bribery, and extortion among others.

On the flip slide, I found it crucial that Dr Matlanyane accurately depicted the state of our economy because it confirms that the government is cognisant of the urgent need for reform and the mammoth task of selflessly serving our nation that is on the brink of disintegrating.

With reference to the Statement on the Economy and Finances which Dr Matlanyane presented to parliament on January 5, 2023, the previous ABC-led government ran a series of substantial deficits which ranged between 4 and 8 percent of the GDP in the last five years. This was due to the expenditure that had been growing much faster than the revenue and it perhaps elucidates why the African Development Bank estimates that the ratio of our debt to GDP was 50 percent in 2021.

Simply put, by taking out loans, the government spent more money than it was making.

This poses challenges; increased and persistently large deficits and debt can lead to increased geopolitical risk, rising interest rates, weaker economic growth, higher interest payments, and chronically high inflation. Thus, the RFP-led administration deserves commendations for its intention to challenge the status quo.

The principal goal of the 2023/2024 budget, “From Reconstruction and Recovery to Growth and Resilience” to hasten economic growth that creates jobs, is inclusive and reduces poverty.

In response to persistently large deficits and debt, the 2023/2024 budget promises a fiscal surplus of one billion maloti which will be 2.5 percent of the GDP. It is pertinent to underline that until the end of this fiscal year, these numbers are just aspirations. In any case, I find them to be invigorating aspirations that must eventually become a reality.

On the administration of the budget, Dr Matlanyane and her Finance and Development Planning team need to do some improving. Regarding paragraphs (a), (b), and (c) of Section 12(1) of the Public Financial Management and Accountability Act 2011 (PFMAA), each programme of the government should submit the receipts and expenditure estimates together with the objectives and performance indicators of the programme, and the details of new policy initiatives.

However, at the time of writing this piece, no documents which speak to the aforementioned paragraphs of the PFMAA are publicly available on the website of the Ministry of Finance and Development Planning. Not only does this obscure the budget’s openness, but it also deters citizens from holding government entities accountable.

Additionally, uploading a PFMAA document with missing pages on the website is utter negligence on the part of the Finance and Development Planning Ministry, excluding any indication that it was done on purpose. Page 268 of the PFMAA which I assume begins the legislative mandate of the budget is missing from the PFMAA document that has been uploaded as of the time this article goes for printing.

Concerning recurring expenses, it is unnerving that in this day and age, so many millions of Maloti are spent on printing. Prospects of the Fourth Industrial Revolution including the widespread accessibility of knowledge in digital form. Of course, there is a significant digital divide in the country, but acknowledging the fact that there are circumstances in which printing is unnecessary should be a top priority.

In addition, M249.3 million is proposed for the Ministry of Information, Communication, Technology and Innovation to fund phase II of the e-Government infrastructure project and the expansion of broadband access among other things. For this reason, I anticipated seeing a significant decrease in projected printing expenses over the next two years in lieu of the projected increase.

One thing that needs explanation is why the M567 956.00 proposed for international fares for the Ministry of Foreign Affairs and International Relations is lower compared to some ministries.

The same goes for the Ministry of Trade, Industry, Business Development and Tourism for which not even a single Loti has been proposed for international fares.

This is because, theoretically speaking, these two ministries are mandated to play a major role in implementing our foreign policy, therefore, it is only reasonable that their international travel costs should be higher than those of other ministries.

On the contrary, according to the draft budget estimates for the financial year 2023/2024, over one million Maloti is proposed for international fares for the Ministry of Health as well as the Ministry of Information and Communications, Science, Technology and Innovation, M587 640.00 for the Ministry of Education, over two million maloti for the Ministry of Finance and Development Planning, over three million for the Prime Minister’s Office, and M477 645.00 for the Ministry of Public Service, Labour and Employment. The big question is, what is the purpose of international travel for these ministries?

Then there is the big elephant in the room, the unending construction of the Royal Palace. It is now a decade since hundreds of millions of Maloti have been pumped into the building of the Royal Palace.

Yet again, a whopping M393 million has been allocated for the completion of the long-delayed construction of the Royal Palace and Senate. Dejectedly, this allocation surpasses proposed budgets for urgently required development projects which will benefit the whole nation.

While hundreds of thousands of Basotho scrape by daily, why are hundreds of millions of Maloti spent on a single household? Can we, the taxpayers, once and for all get a detailed report of what is going on with the Royal Palace? At the very least, we deserve that much!

  • Mosebetsi Khobotlo holds a Bachelor of Political Science cum laude where she majored in Politics, International Relations and Public Administration. She is currently studying for BA Honours International Relations at the University of Pretoria.

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