## 1. Public Sector in the Kingdom of Eswatini

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### Mission overview and key findings
- Mission: GFS and PSDS technical assistance (TA) mission in Mbabane, Kingdom of Eswatini during July 6–12, 2022.
- Mission objectives:
  - Support authorities in enhancing quality and availability of fiscal data.
  - Evaluate progress since previous TA mission.
  - Cover six topics: (i) review classification of public sector entities and update PSIT; (ii) identify source data for compiling fiscal statistics for entire public sector; (iii) assess consistency and accuracy of annual GFS for the Budgetary Central Government (BCG), including COFOG; (iv) facilitate compilation of a draft financial balance sheet; (v) brainstorm on compiling high frequency BCG GFS; (vi) explore improvements to PSDS compilation and dissemination, including expanding instrument and institutional coverage.
- Main interlocutors: GFS Technical Working Group (TWG) composed of officials from Ministry of Finance (MOF), Eswatini Central Bank (ECB), and Eswatini Central Statistical Office (CSO).
- Coordination and process issues:
  - Covid 19 pandemic restrictions impacted implementation of TWG Terms of Reference.
  - TWG agreed to use mission recommendations to develop a medium-term action plan and develop business processes for compiling GFS and PSDS to ensure continuity and consistency.
- Coverage and data gaps:
  - Significant fiscal activity outside the BCG through Extrabudgetary Units (EBU) and Local Governments (LG). Grants from the budget to other general government units were around SZL 3.9 billion in 2020 (~6% of Gross Domestic Product (GDP)).
  - Authorities have made limited progress collecting financial data of government units outside the budget.
  - Mission created a summary table detailing types of data and possible providers to assist data collection.
- GFS and COFOG status:
  - Country reports annual BCG data to IMF GFS database. Mission reviewed GFS for FY 2018 – 2020 and found revenue, expense and transactions in assets and liabilities are preliminary.
  - Compilation of GFS for FY 2021/22 was initiated during the mission.
  - COFOG functional expenditure compilation has progressed but remains limited to parts of BCG spending; more work needed to ensure total functional breakdown aligns with total expenditure by economic categories.
- High frequency data:
  - Monthly fiscal data exist but authorities do not compile and disseminate high frequency GFS. Authorities are concerned about preliminary nature of high-frequency data due to lack of closing periods.
  - Mission recommended compiling and disseminating high frequency data, with clear labeling as preliminary and procedures for updating/revising as final outturns become available.
- Financial balance sheet:
  - Using the Statement of Assets and Liabilities, mission compiled a draft financial balance sheet.
  - Attention needed on loans assets, other accounts receivable and payable stock values.
  - Authorities encouraged to double check inclusion of all assets and liabilities and ensure liabilities align with DMU debt data. Further work may be needed before balance sheet data are suitable for IMF GFS database inclusion.
- PSDS:
  - DMU compiles and disseminates PSDS to the joint World Bank/IMF Quarterly Public Sector Debt database.
  - No progress on including accounts payable in BCG debt statistics as proposed previously.
  - A thorough review of debt numbers extracted from Commonwealth Secretariat Meridian System (CSM) is needed to ensure consistency with actual debt figures.
  - In the longer term, authorities encouraged to add other instruments and sectors such as Category A corporations and ECB debt currently available.

### Progress since previous mission
- Limited progress implementing previous recommendations. Appendix III documents feedback on priority action/milestones from the previous TA mission (March 2021).
- Only one previous recommendation concluded (related to the debt system generating nominal valuation); most remained "work in progress".
- Two recommendations registered "no progress":
  - (i) GFS TWG to advise Departments on an appropriate definition of payables to reduce confusion with "arrears". Treasury Annual Financial Report for the year ended March 31, 2021, explains accumulation of expenditure arrears resulted from recent expansionary fiscal policy and volatile SACU revenue collection. Accounts payables are mainly expenditure due for payment without any deadline that would transform these into arrears. Authorities agree on need for a formal definition of arrears and reporting requirements on arrears.
  - (ii) GFS TWG to compile headline figures on the impact of COVID 19 on the debt and deficit statistics. BEAD agreed to work on this in the next year.

### Priority recommendations (high-level)
- Reactivate GFS TWG: create routine for frequent meetings; finalize work plan; create procedures to review consistency between GFS and other macro statistics; establish protocol for timely provision of data by public units. Target: December 2022 / Ongoing. Responsible: TWG.
- Review and validate PSIT: complete entity list; evaluate classification according to GFSM 2014 including market tests in all Category A entities; publish final PSIT on authorities' official websites. Target: December 2022. Responsible: TWG.
- Annual BCG GFS: revise previous years' GFS questionnaires and resubmit final data to IMF GFS database; finalize and validate GFS Questionnaire for FY 2021/22 (Tables 1, 2 and 3) and disseminate through IMF GFS database. Target: December 2022. Responsible: MOF/BEAD.
- BCG quarterly debt statistics for the last 3 years: ensure comprehensive and consistent; disseminate into joint World Bank/IMF quarterly debt database. Target: December 2022. Responsible: MOF/DMU.

### Detailed action plan highlights (selected actions and target dates)
- Coordination and organization
  - 1.1 Reactivate GFS TWG: December 2022 / Ongoing. Responsible: TWG.
  - 1.2 Document business processes and create a GFS and PSDS guide or chapter in MTFF Manual: Target September 2023. Responsible: MOF/BEAD.
- Sectorization and institutional coverage
  - 2.1 Review and validate PSIT: Target December 2022. Responsible: TWG.
  - 2.2 Conduct market tests annually for public enterprises classification: Target December 2022. Responsible: TWG.
- Data sources
  - 3.1 Collection of BCG fiscal data including nonfinancial asset stock and flow data, high frequency fiscal data, and ensure deposit data reconciled with ECB: Target September 2023. Responsible: TWG.
  - 3.2 Collect LG detailed financial reports to start compiling GFS for LG: Target September 2023. Responsible: TWG.
  - 3.3 Collect EBU detailed financial reports to start compiling GFS for EBU: Target September 2023. Responsible: TWG.
  - 3.4 Revise Public Enterprises Performance Model Excel file: add detailed note data and revise structure to support transformation into GFS: Target December 2022. Responsible: PEU.
  - 3.5 Meridian debt system cleanup and validation; input financial asset data; create glossary of terms and formulas: Target September 2023. Responsible: MOF/DMU.
- GFS compilation
  - 4.1 Annual BCG GFS finalization, revision of prior years, reconciliation with MTFF: Target December 2022. Responsible: MOF/BEAD.
  - 4.2 BCG COFOG compilation consistency checks and dissemination: Target December 2023. Responsible: MOF/BEAD.
  - 4.3 Compile and disseminate BCG Financial Balance Sheet (Table 6 of GFS Questionnaire): replicate exercise to other years and start disseminating: Target December 2023. Responsible: MOF/BEAD.
  - 4.4 Compilation of high frequency BCG: create compilation procedure: Target December 2022. Responsible: MOF/BEAD.
  - 4.5 Report on COVID 19 impacts to compile headlines on impact on debt and deficit statistics: Target September 2023. Responsible: MOF/BEAD.
  - 4.6 Fully migrate MTFF to GFSM 2014 standards: Target September 2023. Responsible: MOF/BEAD.
  - 4.7 Automate the compilation process; develop a Business Intelligent platform to support GFS compilation: Target September 2024. Responsible: TWG.
- PSDS compilation
  - 5.1 BCG quarterly debt statistics for the last 3 years: ensure comprehensive and consistent; disseminate into joint World Bank/IMF quarterly debt database; incorporate Other Accounts Payable into existing debt statistics for BCG: Target December 2022. Responsible: MOF/DMU.

### Operational and technical follow-ups recommended
- Finalize and publish validated PSIT on authorities' official websites.
- Conduct market tests for Category A entities to confirm sector classification under GFSM 2014.
- Strengthen collection of LG and EBU financial reports to build comprehensive GFS for the wider public sector.
- Reconcile deposit data with ECB and align financial balance sheet liabilities with DMU debt data.
- Clean up and validate Meridian debt system data and incorporate financial asset data to enable net debt reporting.
- Compile and disseminate high frequency GFS with clear preliminary labeling and revision procedures.
- Revise and resubmit prior years' GFS questionnaires with final data to IMF GFS database and finalize FY 2021/22 GFS Questionnaire (Tables 1, 2 and 3).

### Institutional coverage — public sector structure and classification
- Public sector subdivided into General Government (GG) and Public Corporations sector.
- At GG level:
  - 86 BCG entities
  - 21 EBU
  - 22 LG entities
- Within the BCG:
  - 4 sovereign entities
  - 19 ministries
  - 2 offices
  - 5 governmental departments
  - 18 agencies and regulatory agencies
  - 5 commissions
  - 2 funds
  - 14 health and education public entities
  - 17 other entities (boards, councils, public institutes, services)
- Category A public enterprises:
  - Originally identified: 28 entities
  - Today: 49 Category A entities
  - Classification breakdown: about 45 percent should be treated as BCG units; 27 percent as EBU; 22 percent as public nonfinancial corporations; remainder as public finance corporation and non-profit organization.
  - Many Category A entities are not included in BCG data beyond transfers (subsidies/grants); consolidating the full GG could materially change reported fiscal data.
- EBU sub-sector: 21 entities (1 regulatory agency, 2 commissions, 5 boards, 1 fund, 11 health and education entities, 1 other public service).
- Local government subsector: 22 entities (6 town councils, 10 town boards, 5 health and education entities, 1 additional public service).
  - Legal constraint: Under Public Finance Act 2017 (PFM Act 2017), a LG authority may not borrow except from Central Government and may issue securities.
- Social security:
  - Eswatini does not currently operate any social security funds.
  - November 2021: MLSS approved the National Social Security Policy and authorities are considering creation of basic state pension scheme, health insurance fund and workers compensation fund.
  - Entities created to operate social security schemes are typically classified within GG; existing National Provident Fund and Public Service Pension Fund are currently classified outside GG as public financial corporations (pension funds).
- Public corporations: Total 17 entities: 9 nonfinancial public corporations and 8 financial corporations including the ECB, two pension funds under the control of MLSS and Financial Services Regulatory Authority.
  - GoE shareholdings in Category A public enterprises range from 75 percent to 100 percent.
- Market-producer assessment:
  - Evidence of operating losses in some public companies (Royal Eswatini National Airways Corporation, Eswatini Posts and Telecommunications Corporation, Small Enterprises Development Company, Eswatini National Industrial Development Corporation) suggests reliance on Central Government support and need for market tests to determine nonmarket vs market producer status.
  - Market test should be carried out regularly on an entity-by-entity basis.

### Source data for GFS and PSDS compilation — inventory and providers (as of July 2022)
- Revenue:
  - Taxes: ERS
  - Other Taxes: ERS/Treasury
  - Grants: MEPD
  - Social Contributions: PSPF and ENPF
  - Other Revenue: Treasury
- Expense: collected from Treasury (by economic nature; by function (COFOG))
- Assets (Annual/Quarterly) — nonfinancial and financial:
  - Fixed Assets, Inventory, Valuables, Nonproduced assets
  - Financial assets by instrument:
    - Domestic: Currency and Deposits (Treasury/ECB); Debt Securities; Loans; Equity and Investment Fund; Others Accounts Receivables; External
  - Financial assets by debtor: Domestic; External
- Liabilities (Annual/Quarterly):
  - Liabilities by instrument:
    - Domestic: Currency and Deposits (DMU/Treasury/ECB); Debt Securities (DMU/ECB); Loans (DMU); Others Accounts Payables (Treasury)
    - External: Debt Securities; Loans
  - Liabilities at Nominal/Market value (Domestic/External)
  - Liabilities at Face Value (Domestic/External)
  - Liabilities by Creditor (Domestic/External)
- Data collection notes:
  - EBU data for revenue, expense, assets, liabilities should be collected from EBU financial statements.
  - LG data for revenue, expense, assets, liabilities should be collected from MHUD.
  - SOE data for revenue, expense, assets, liabilities should be collected from PEU.
  - Stocks/Flows data sources indicated across DMU, Treasury, ECB, PEU as relevant.
- Specific observations:
  - Annual Statement of Assets and Liabilities from Treasury is a potential source for financial assets and liabilities; should be reconciled with ECB for currency and deposits.
  - Treasury working group compiling tangible assets inventory could assist valuation of nonfinancial assets for a full balance sheet under GFSM 2014.
  - IFMIS is under development and expected to improve compilation process; no operational date known.
  - Authorities are in process of adopting IPSAS.
  - High-frequency (monthly or quarterly) data were not provided during the mission; mission strongly recommended compiling and disseminating high-frequency data during the year, even if preliminary and updated when final data become available.
  - Transactions recording: Revenue recorded on a cash basis. Some expense items and transactions in nonfinancial assets recorded on a noncash basis.
  - Below-the-line data incomplete: no transactions recorded in other accounts payable; this may contribute to large statistical discrepancies between above and below the line data reported to IMF GFS Database.
  - Local government data gap: No data currently available for LG; MHUD is theoretically responsible for LG data collection and compilation.
    - 2018/19 municipal income (excluding Government grants) for two largest municipalities: Mbabane: SZL130 million; Manzini: SZL 88 million.

### Availability of EBU and public enterprise source data
- EBU source data required for GFS compilation is available for some units.
- During FY 2019-2021 transfers from BCG to EBU represent on average about 50 percent of total grants expense (about 3 percent of GDP).
- Public Enterprises Performance Model (PEU) provides main aggregates: total assets, operating surplus, operating revenue, fixed assets, current assets, current liabilities, total debt outstanding and others.
- Limitations of the file:
  - Does not present sufficiently detailed information needed to allow compilation of comprehensive GFS.
  - Format needs revision to facilitate transformation of financial data into GFS.
  - Presents indicators for Category A public enterprises without separating subsectors indicated by GFSM 2014 – EBU and public corporations.
- Recommended action: revise file structure and add detailed data from notes of public enterprises' financial statements.

### GFS compilation and dissemination — key observations and selected tables
- PFM Act 2017 requires MOF to compile and publish GFS in accordance with best acceptable international standards.
- MOF compiles and disseminates GFS for the BCG and submits detailed revenue (GFS Table 1), expense (GFS Table 2) and transactions in assets and liabilities (GFS Table 3) to the IMF GFS database.
- For fiscal years ending 2020 and 2021, GFS presents large statistical discrepancies of > SZL 1 billion, (>1 percent of GDP). Statistical discrepancy is normal and acceptable when reported as below 1 percent of GDP; FY 2018/2019 statistical discrepancy is not considered very significant.

- BCG — Statement of Operations on Cash Basis (Table 4; Unit: Million SZL)
  - As of end of March:
    - Revenue: 2018/2019 15,710.24; 2019/2020 17,771.80; 2020/2021 18,806.44
    - Expense: 2018/2019 16,455.36; 2019/2020 16,868.22; 2020/2021 17,753.13
    - Net operating balance (1-2): 2018/2019 -745.12; 2019/2020 903.58; 2020/2021 1,053.31
    - Net/gross investment in nonfinancial assets (31): 2018/2019 3,342.21; 2019/2020 4,679.05; 2020/2021 5,491.58
    - Expenditure (2+31) (2M): 2018/2019 19,797.57; 2019/2020 21,547.26; 2020/2021 23,244.71
    - Net lending (+)/Net borrowing (-) (1-2-31) or (1-2M) (NLB): 2018/2019 -4,087.33; 2019/2020 -3,775.47; 2020/2021 -4,438.27
    - Net acquisition of financial assets (32): 2018/2019 -953.39; 2019/2020 461.81; 2020/2021 -141.52
    - Net incurrence of liabilities (33): 2018/2019 3,318.60; 2019/2020 3,076.70; 2020/2021 5,873.15
    - Statistical discrepancy: NLB vs Financing (32-33-NLB) (NLBz): 2018/2019 -184.65; 2019/2020 1,160.58; 2020/2021 -1,576.40
  - Memorandum items:
    - GDP (IMF): 2018/2019 62,400.00; 2019/2020 66,300.00; 2020/2021 71,800.00
    - Revenue/GDP: 25.18%; 26.80%; 26.20%
    - Expense/GDP: 26.37%; 25.40%; 24.70%
    - NLB/GDP: -6.55%; -5.70%; -6.20%
    - NLBz/GDP: -0.30%; 1.80%; -2.20%
- Causes of statistical discrepancies and data consistency issues:
  - Multiple data sources using different compilation criteria contributes to discrepancies.
  - Different accounting methods (cash vs. accrual) are used to record transactions, possibly leading to inconsistencies between above-the-line and below-the-line transactions.
  - Specific concerns: Flows of government deposits reported by ECB and Treasury are not easily reconciled; stock and flows of loans provided could not be reconciled.
- Use of MTFF and alignment with GFSM 2014:
  - GFS is compiled from fiscal data that has been bridged to MTFF.
  - Bridging MTFF to compile GFS introduces risks to consistency and accuracy.
  - Comparative review (FY 2018–2020) shows revenue is aligned with insignificant differences, but expenditure presents significant differences between GFS and MTFF; MTFF expense is consistently higher than GFS expense.
  - Recommendation: authorities should consider fully migrating MTFF to GFSM 2014 standards and review GFS compilation file to ensure all transactions are captured correctly.
  - Authorities indicated GFS data submitted to IMF GFS database is preliminary while MTFF reflects actual data; GFS for FY 2018-2021 should be resubmitted.

- Comparative cash flows from Operating Activities vs. MTFF (Table 5; Unit: Million SZL) — selected entries:
  - Revenue (MTFF vs GFS):
    - 2018/2019 15,684.11 vs 15,710.24 (MTFF minus GFS -26.13)
    - 2019/2020 17,893.13 vs 17,771.80 (121.33)
    - 2020/2021 19,267.65 vs 18,806.44 (461.20)
  - Expense (MTFF vs GFS):
    - 2018/2019 19,996.70 vs 16,455.36 (3,541.33)
    - 2019/2020 23,402.21 vs 16,868.22 (6,534.00)
    - 2020/2021 23,594.07 vs 17,753.13 (5,840.93)
  - Net/gross investment in nonfinancial assets (31) (MTFF vs GFS):
    - 2018/2019 3,337.19 vs 3,342.21 (-5.02)
    - 2019/2020 5,758.70 vs 4,679.05 (1,079.65)
    - 2020/2021 4,999.17 vs 5,491.58 (-492.41)
  - Expenditure (2+31) (MTFF vs GFS):
    - 2018/2019 23,333.89 vs 19,797.57 (3,546.32)
    - 2019/2020 29,160.91 vs 21,547.26 (7,613.65)
    - 2020/2021 28,593.23 vs 23,244.71 (5,348.52)
  - Net lending / Net borrowing (NLB) (MTFF vs GFS):
    - 2018/2019 -7,649.78 vs -4,087.33
    - 2019/2020 -11,267.78 vs -3,775.47
    - 2020/2021 -9,325.58 vs -4,438.27
  - Net acquisition of financial assets (32) (MTFF vs GFS):
    - 2018/2019 -953.34 vs -953.39 (0.05)
    - 2019/2020 389.83 vs 461.81 (-71.99)
    - 2020/2021 -182.90 vs -141.52 (-41.38)
  - Net incurrence of liabilities (33) (MTFF vs GFS):
    - 2018/2019 3,342.15 vs 3,318.60 (23.55)
    - 2019/2020 3,838.21 vs 3,076.70 (761.51)
    - 2020/2021 5,233.15 vs 5,873.15 (-640.00)

### Functional expenditures (COFOG)
- COFOG is under development by MOF and is currently limited to BCG.
- Source data from public entities outside BCG are not detailed enough or are nonexistent to compile COFOG for the entire GG.
- Table 6: BCG – COFOG Sum of FY 2018–2021 (Unit: Million SZL) — selected items by year:
  - 701 General Public services: 2019 2,605.67; 2020 3,451.70; 2021 3,808.91
  - 702 Defense: 994.82; 1,019.17; 966.68
  - 703 Public Order and Safety: 1,933.54; 1,767.95; 1,813.44
  - 704 Economic Affairs: 385.70; 639.26; 1,173.91
  - 705 Environmental Protection: 15.09; 21.28; 55.21
  - 706 Housing and Community amenities: 60.35; 71.49; 526.79
  - 707 Health: 1,807.63; 1,640.79; 2,007.59
  - 708 Recreation, culture and religion: 57.78; 104.13; 169.25
  - 709 Education: 3,054.60; 2,776.91; 3,922.33
  - 710 Social Protection: 40.71; 57.31; 1,814.36
  - TOTAL COFOG sums: 2019 10,955.91; 2020 11,549.99; 2021 16,258.50
  - 2M Tables 2 + 31 (Expenditure): 2019 19,797.57; 2020 21,547.26; 2021 23,244.71
  - Consistency check (Expenditure gap): 2019 8,841.67; 2020 9,997.27; 2021 6,986.22
- Recommendation (Target Date: December 2023):
  - Compile BCG COFOG: (i) Finalize compilation of COFOG; (ii) check COFOG consistency, comparing Expenditure (7) = Expenditure (2+31); and (iii) start disseminating through IMF GFS database. Responsible: MOF/BEAD.

### Balance sheet data and preliminary financial balance sheet
- Balance sheet is a core GFS component recording stocks of assets, liabilities, and net worth.
- Mission prepared a draft financial balance sheet in the GFS Framework using the Treasury Department's annual Statement of assets and liabilities.
- Practical reconciliation issues:
  - Impossible to reconcile currency and deposits between Treasury and ECB.
  - Treasury reports deposits inflows and outflows separately; ECB reports deposit as net figures of a fungible account.
  - ECB reports government balances in local and foreign currency including accrued interest (accrual basis); Treasury uses cash basis.
  - Statement of assets and liabilities does not allow split between domestic and external assets and liabilities.
  - Debt liabilities reported by Treasury were hard to reconcile with DMU figures; mission suggested use of DMU figures for compiling Financial Balance Sheet.
- Treasury statement provides potential source for loans assets, other accounts receivable and payable; identified advances as mainly loans and items 6218 and 6318 as other accounts receivable and payable.
- First draft of Financial Balance Sheet used:
  - Currency and deposits from ECB;
  - Loans assets, other accounts receivable and payable from Treasury;
  - Debt liabilities from DMU.
- Assets missing and requiring further work: government equity assets.

- Preliminary BCG – Financial Balance Sheet (Table 7; Unit: Million SZL)
  - Financial assets [621+622]: 2018/2019 6,038.79; 2019/2020 5,534.94; 2020/2021 6,533.10
    - 621 Domestic: 6,038.79; 5,534.94; 6,533.10
    - 6212 Currency and deposits: 3,002.65; 2,194.75; 3,771.20
    - 6214 Loans: 455.73; 491.75; 466.09
    - 6218 Other accounts receivable: 2,580.41; 2,848.44; 2,295.78
    - 622 External: 0.00; 0.00; 0.00
  - Liabilities [631+632]: 2018/2019 16,197.40; 2019/2020 21,857.28; 2020/2021 23,457.29
    - 631 Domestic: 14,555.23; 18,735.18; 20,332.75
      - 6313 Debt securities: 5,640.39; 6,653.66; 8,058.69
      - 6314 Loans: 1,444.90; 1,796.77; 1,501.60
      - 6318 Other accounts payable: 7,469.94; 10,122.10; 10,772.46
    - 632 External: 1,642.20; 3,122.10; 3,124.50
      - 6324 Loans: 1,642.17; 3,122.10; 3,124.54
  - Source data: MOF/BEAD & Treasury
- Financial Balance Sheet recommendations (Target Date: December 2023):
  - Compile and disseminate BCG Financial Balance Sheet (Table 6 of the GFS Questionnaire): (i) Finalize the exercise initiated during the mission; (ii) Replicate the exercise to other years; and (iii) Compile and report GFS Questionnaire Table 6. Responsible: MOF/BEAD.

### Public Sector Debt Statistics (PSDS), CSM and Meridian outputs
- Debt statistics source data recorded and managed on the new CSM system.
- CSM features:
  - Operating for less than a year in the GoE.
  - Advanced functionalities, reporting module with search features, analytical reports with customization, automated reports for disclosing debt.
- Current challenges:
  - Source data availability and the need to clean up data recorded in the system.
  - Reports configured to calculate gross and net debt, but due to lack of data on financial assets, reports present gross debt equals net debt.
  - No document defining terms used in the system; a Glossary of main terms is needed.
  - DMU is still validating data entries in the CSM and only able to validate debt numbers for FY 2020/2021.
  - Authorities indicated issues related to comprehensiveness of the data recorded and available that reflect real debt situation, particularly related to disbursements for fiscal years before 2021.
  - Authorities are only able to validate FY 2021 numbers and are working on the CSM to clean entries and ensure debt data for fiscal years before 2020 reflect actual numbers.
- The CSM can produce debt by instrument, maturity, currency of denomination and maturity, type of interest, residency, counterpart, debt services and others and in different time frequencies - daily, monthly, quarterly and annually.
- Expanding instrument coverage from D1 (debt securities and loans) to cover all debt instruments remains challenging due to lack of available source data.
- Debt at nominal values is available in the CSM, but for years before 2021 they need to be properly reconciled between the valuation methodologies.

- Annual gross debt (face value) — Table 8 (Unit: Million SZL)
  - Face Value 2018 2019 2020 2021
  - Debt Instruments 14,696.83 17,937.39 21,341.72 27,096.03
  - Domestic 7,639.13 8,777.09 10,780.64 16,595.92
    - Debt securities 6,194.59 6,982.20 9,281.06 13,573.58
    - Loans 1,444.53 1,794.89 1,499.59 3,022.35
  - External 7,057.70 9,160.31 10,561.07 10,500.10
    - Loans 7,057.70 9,160.31 10,561.07 10,500.10
  - Source: MOF/DMU – CSM, July 2022

- Meridian system valuation and fair value:
  - Meridian produces debt figures valued under nominal, face and fair value.
  - GFSM 2014 proposes stock positions be valued at market value, but recognizes not all debt instruments can be valued at market value and suggests also valuation under nominal value.
  - No market valuation is clearly available in the CSM; however, a fair value is reported.
  - GFSM 2014, paragraph 3.115: fair value is a market-equivalent value defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arms-length transaction.
  - Definition of the terms used in Meridian were not available to ensure if fair value would be a good proxy for market value, particularly for treasury bills and bonds that are tradeable instruments.

- Stock-flow checks and integrated balance (face value) — Table 9 (Unit: Million SZL)
  - 2019 Closing Balance, Disburse., Amort., OEF, 2020 Closing Balance, Disburs., Amort., OEF, 2021 Closing Balance
  - Debt Securities: 6,982.20 2,914.87 616.01 0.00 9,281.06 8,866.13 4,491.29 0.00 13,655.89
  - Loans: 10,955.19 4,198.43 762.99 -2,329.98 12,060.66 6,965.64 5,242.46 -343.71 13,440.13
  - Total: 17,937.39 7,113.30 1,379.00 -2,329.98 21,341.72 15,831.77 9,733.75 -343.71 27,096.03
  - Source : MOF/DMU – Meridian, July 2022

- Other Economic Flows (OEF), parity change, and exchange rate effects:
  - No OEF recorded for debt securities, but are applicable to loans.
  - Debt securities stocks and flows are well integrated in 2020 and 2021 – change of stocks (at face value) is fully explained by the transactions reflecting no OEFs due to revaluation.
  - Transactions don’t fully explain the change in the stock of loan liabilities because much of the external loans to Eswatini are denominated in foreign currencies.
  - GFSM 2014, paragraph 3.31: OEF represent changes in the volume or value of assets or liabilities that are not generated by transactions.
  - Mission assumes that “parity change” figures obtained from the CSM would be a proxy for OEF as they are shown as residual amounts and, according to the authorities, reflect mainly the impact of exchange rate movements on external loans denominated in foreign currencies.
  - Authorities admitted that disbursements of 2020 and previous years might not be fully captured in the system, meaning that the total amount reported under Table 9 might not all be related to OEF.

- Recommendations and implementation targets (debt statistics)
  - December 2022: Finalize and disseminate quarterly debt statistics of the BCG for FY 2019-2022 to the joint World Bank/IMF quarterly debt database. — Responsible: DMU
  - December 2023: Incorporate Other Accounts Payable into the existing debt statistics for the BCG. — Responsible: DMU
  - December 2023: Implement a phased approach to expand instrument and institutional coverage with aim to report all debt instruments of the entire public sector. — Responsible: DMU
  - Fair and market valuation methods: Clarify the definition of fair value in the system and ensure it can be a good proxy for market values. — Responsible: MOF/DMU
  - December 2022: Ensure that “Parity change” aggregate generated by the CSM represents OEF and not something else. — Responsible: DMU

### Appendix highlights — institutional lists and Statement of Assets and Liabilities (selected lines)
- Public sector institutional classification codes used: GG, CG, BCG, EBU, LG, PC, PNFC, PFC.
- Selected BCG entities include Parliament (Code 02), Private and Cabinet Offices (Code 03), King's Office (Code 52), multiple ministries and agencies (examples include Eswatini Revenue Authority Code 10008; University of Eswatini Code 10211).
- Local governments listed include Mbabane City Council (Code 10030) and Manzini City Council (Code 10031) among others.
- Public nonfinancial corporations and public financial corporations and their state ownership percentages are listed (examples: Eswatini Electricity Company — SOE — 100%; Royal Swazi National Airways Corporation — SOE — 50%; Central Bank of Eswatini — SOE — 100%).
- Appendix VI — Statement of Assets and Liabilities (selected lines and totals) — values provided by Treasury (Unit: absolute amounts as in source):
  - ASSETS examples:
    - Bank Accounts (6212): 772,182,521.46 (2018/2019); 751,237,514.88 (2019/2020); 881,762,718.66 (2020/2021)
    - Cash Accounts (6212): 212,666,941.31 (2018/2019); 224,987,847.45 (2019/2020); 230,607,042.72 (2020/2021)
    - Employee Advances (6214): 370,516,716.77 (2018/2019); 404,235,601.75 (2019/2020); 412,912,054.13 (2020/2021)
    - Total ASSETS: 7,958,752,898.94 (2018/2019); 8,712,082,078.83 (2019/2020); 9,593,904,752.89 (2020/2021)
  - LIABILITIES examples:
    - Capital Fund (6318): 6,452,582,523.07 (2018/2019); 7,320,090,832.52 (2019/2020); 8,678,484,068.37 (2020/2021)
    - Accounts Payable (6318): 357,942,166.75 (2018/2019); 2,209,257,219.40 (2019/2020); 1,317,219,784.83 (2020/2021)
    - TOTAL LIABILITIES: 7,958,752,898.94 (2018/2019); 8,712,082,078.83 (2019/2020); 9,593,904,752.89 (2020/2021)
  - Notes: GFS Codes recorded alongside items (examples: 6212, 6214, 6218, 6312, 6314, 6315, 6318).

*Source: 1. Public Sector in the Kingdom of Eswatini (content unit: 1swzea2022001)*

### 1. Public Sector in the Kingdom of Eswatini ______________________________________________________  13

### 1. Public Sector in the Kingdom of Eswatini

### Mission overview and key findings
- A Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) technical assistance (TA) mission was conducted in Mbabane, Kingdom of Eswatini during July 6–12, 2022.
- Mission objectives:
  - Support authorities in enhancing quality and availability of fiscal data.
  - Evaluate progress since previous TA mission.
  - Cover six topics: (i) review classification of public sector entities and update PSIT; (ii) identify source data for compiling fiscal statistics for entire public sector; (iii) assess consistency and accuracy of annual GFS for the Budgetary Central Government (BCG), including COFOG; (iv) facilitate compilation of a draft financial balance sheet; (v) brainstorm on compiling high frequency BCG GFS; (vi) explore improvements to PSDS compilation and dissemination, including expanding instrument and institutional coverage.
- Main interlocutors: GFS Technical Working Group (TWG) composed of officials from Ministry of Finance (MOF), Eswatini Central Bank (ECB), and Eswatini Central Statistical Office (CSO).
- Coordination and process issues:
  - Covid 19 pandemic restrictions impacted implementation of the TWG Terms of Reference.
  - TWG agreed to use mission recommendations to develop a medium-term action plan and to develop business processes for compiling GFS and PSDS to ensure continuity and consistency.
- Coverage and data gaps:
  - Significant fiscal activity occurs outside the BCG through Extrabudgetary Units (EBU) and Local Governments (LG). Grants from the budget to other general government units were around SZL 3.9 billion in 2020 (~6% of Gross Domestic Product (GDP)).
  - Authorities have made limited progress collecting financial data of government units outside the budget.
  - The mission created a summary table detailing types of data and possible providers to assist data collection.
- GFS and COFOG status:
  - Country reports annual BCG data to IMF GFS database. The mission reviewed GFS for FY 2018 – 2020 and found transactions such as revenue, expense and transactions in assets and liabilities are preliminary.
  - Compilation of GFS for FY 2021/22 was initiated during the mission.
  - COFOG functional expenditure compilation has progressed but remains limited to parts of BCG spending; more work needed to ensure total functional breakdown aligns with total expenditure by economic categories.
- High frequency data:
  - Monthly fiscal data exist but the authorities do not compile and disseminate high frequency GFS. Authorities are concerned about preliminary nature of high-frequency data due to lack of closing periods.
  - Mission recommended compiling and disseminating high frequency data, with clear labeling as preliminary and procedures for updating/revising as final outturns become available.
- Financial balance sheet:
  - Using the Statement of Assets and Liabilities, the mission compiled a draft financial balance sheet.
  - Attention needed on loans assets, other accounts receivable and payable stock values.
  - Authorities encouraged to double check inclusion of all assets and liabilities and ensure liabilities align with DMU debt data. Further work may be needed before balance sheet data are suitable for IMF GFS database inclusion.
- PSDS:
  - DMU compiles and disseminates PSDS to the joint World Bank/IMF Quarterly Public Sector Debt database.
  - No progress on including accounts payable in BCG debt statistics as proposed previously.
  - A thorough review of debt numbers extracted from Commonwealth Secretariat Meridian System (CSM) is needed to ensure consistency with actual debt figures.
  - In the longer term, authorities encouraged to add other instruments and sectors such as Category A corporations and ECB debt currently available.

### Progress since previous mission
- Limited progress implementing previous recommendations. Appendix III documents feedback on priority action/milestones from the previous TA mission (March 2021).
- Only one previous recommendation was concluded (related to the debt system generating nominal valuation); most remained "work in progress".
- Two recommendations registered "no progress":
  - (i) GFS TWG to advise Departments on an appropriate definition of payables to reduce confusion with "arrears". The Treasury Annual Financial Report for the year ended March 31, 2021, explains accumulation of expenditure arrears resulted from recent expansionary fiscal policy and volatile SACU revenue collection. Accounts payables are mainly expenditure due for payment without any deadline that would transform these into arrears. Authorities agree on need for a formal definition of arrears and reporting requirements on arrears.
  - (ii) GFS TWG to compile headline figures on the impact of COVID 19 on the debt and deficit statistics. BEAD agreed to work on this in the next year.

### Priority recommendations (high-level)
- Reactivate GFS TWG: create routine for frequent meetings; finalize work plan; create procedures to review consistency between GFS and other macro statistics; establish protocol for timely provision of data by public units. Target: December 2022 / Ongoing. Responsible: TWG.
- Review and validate PSIT: complete entity list; evaluate classification according to GFSM 2014 including market tests in all Category A entities; publish final PSIT on authorities' official websites. Target: December 2022. Responsible: TWG.
- Annual BCG GFS: revise previous years' GFS questionnaires and resubmit final data to IMF GFS database; finalize and validate GFS Questionnaire for FY 2021/22 (Tables 1, 2 and 3) and disseminate through IMF GFS database. Target: December 2022. Responsible: MOF/BEAD.
- BCG quarterly debt statistics for the last 3 years: ensure comprehensive and consistent; disseminate into joint World Bank/IMF quarterly debt database. Target: December 2022. Responsible: MOF/DMU.

### Detailed action plan highlights (selected actions and target dates)
- Coordination and organization
  - 1.1 Reactivate GFS TWG: December 2022 / Ongoing. Responsible: TWG.
  - 1.2 Document business processes and create a GFS and PSDS guide or chapter in MTFF Manual: Target September 2023. Responsible: MOF/BEAD.
- Sectorization and institutional coverage
  - 2.1 Review and validate PSIT: Target December 2022. Responsible: TWG.
  - 2.2 Conduct market tests annually for public enterprises classification: Target December 2022. Responsible: TWG.
- Data sources
  - 3.1 Collection of BCG fiscal data including nonfinancial asset stock and flow data, high frequency fiscal data, and ensure deposit data reconciled with ECB: Target September 2023. Responsible: TWG.
  - 3.2 Collect LG detailed financial reports to start compiling GFS for LG: Target September 2023. Responsible: TWG.
  - 3.3 Collect EBU detailed financial reports to start compiling GFS for EBU: Target September 2023. Responsible: TWG.
  - 3.4 Revise Public Enterprises Performance Model Excel file: add detailed note data and revise structure to support transformation into GFS: Target December 2022. Responsible: PEU.
  - 3.5 Meridian debt system cleanup and validation; input financial asset data; create glossary of terms and formulas: Target September 2023. Responsible: MOF/DMU.
- GFS compilation
  - 4.1 Annual BCG GFS finalization, revision of prior years, reconciliation with MTFF: Target December 2022. Responsible: MOF/BEAD.
  - 4.2 BCG COFOG compilation consistency checks and dissemination: Target December 2023. Responsible: MOF/BEAD.
  - 4.3 Compile and disseminate BCG Financial Balance Sheet (Table 6 of GFS Questionnaire): replicate exercise to other years and start disseminating: Target December 2023. Responsible: MOF/BEAD.
  - 4.4 Compilation of high frequency BCG: create compilation procedure: Target December 2022. Responsible: MOF/BEAD.
  - 4.5 Report on COVID 19 impacts to compile headlines on impact on debt and deficit statistics: Target September 2023. Responsible: MOF/BEAD.
  - 4.6 Fully migrate MTFF to GFSM 2014 standards: Target September 2023. Responsible: MOF/BEAD.
  - 4.7 Automate the compilation process; develop a Business Intelligent platform to support GFS compilation: Target September 2024. Responsible: TWG.
- PSDS compilation
  - 5.1 BCG quarterly debt statistics for the last 3 years: ensure comprehensive and consistent; disseminate into joint World Bank/IMF quarterly debt database; incorporate Other Accounts Payable into existing debt statistics for BCG: Target December 2022. Responsible: MOF/DMU.

### Operational and technical follow-ups recommended
- Finalize and publish validated PSIT on authorities' official websites.
- Conduct market tests for Category A entities to confirm sector classification under GFSM 2014.
- Strengthen collection of LG and EBU financial reports to build comprehensive GFS for the wider public sector.
- Reconcile deposit data with ECB and align financial balance sheet liabilities with DMU debt data.
- Clean up and validate Meridian debt system data and incorporate financial asset data to enable net debt reporting.
- Compile and disseminate high frequency GFS with clear preliminary labeling and revision procedures.
- Revise and resubmit prior years' GFS questionnaires with final data to IMF GFS database and finalize FY 2021/22 GFS Questionnaire (Tables 1, 2 and 3).

*Source: 1. Public Sector in the Kingdom of Eswatini*

### 5.2 Expansion of instrument and institutional

### 1swzea2022001 - 5.2 Expansion of instrument and institutional coverage of debt statistics

### Expansion of instrument and institutional coverage
- Recommendation: Implement a phased approach to expand instrument and institutional coverage with aim to report all debt instruments of the entire public sector.
  - Responsible: TWG
  - Target Date: September 2023
  - Priority: L
- Related specific actions recorded in source:
  - 5.3 Legislate on the definition of arrears. Create an official definition arrears and publish it through legislation.
    - Responsible: MOF
    - Target Date: September 2023
    - Priority: L
  - 5.4 Fair and market valuation methods. Clarify the definition of fair value in the system and ensure it can be a good proxy for market values.
    - Responsible: MOF/DMU
    - Target Date: December 2022
    - Priority: M
  - 5.5 OEF vs. “Parity change”. Ensure that “Parity change” aggregate generated by the CSM represents OEF and not something else.
    - Responsible: MOF/DMU
    - Target Date: December 2022

### Coordination of GFS and PSDS compilation process
- Context and findings:
  - The Kingdom of Eswatini has a GFS TWG created in 2019 with representation from the MOF, the ECB and CSO.
  - Implementation of TWG tasks was delayed due to COVID 19 restrictions.
  - Consistency between GFS and PSDS and with other macroeconomic statistics (national accounts (GDP), monetary and financial accounts, external sector accounts) is of paramount importance.
  - The mission emphasized regular MOF meetings with other macro compilers and the need to reconcile stocks and flows.
  - Documenting business processes was recommended: develop a GFS and PSDS compilation manual or include a chapter in the existing MTFF Manual.

- Recommendations and targets:
  - Reactivate GFS TWG with specific tasks:
    - (i) Create routine for frequent meetings to ensure coordination of the GFS and PSDS compilation;
    - (ii) Finalize work plan currently under development;
    - (iii) Create procedures to review consistency between GFS data and other macroeconomic statistics (real, external and monetary & financial statistics);
    - (iv) Establish a protocol for ensuring the provision of regular data of public units in a timely manner.
    - Responsible: TWG
    - Target Date: December 2022 / Ongoing and September 2023
  - Document business process for compiling GFS and PSDS. Create a draft GFS and PSDS guide for compilers and users for the Kingdom of Eswatini or incorporate a chapter in the existing MTFF Manual.
    - Responsible: BEAD

### Institutional coverage — the public sector
- Public sector structure and classification:
  - Public sector subdivided into General Government (GG) and Public Corporations sector.
  - At GG level:
    - 86 BCG entities
    - 21 EBU
    - 22 LG entities
  - Within the BCG:
    - 4 sovereign entities
    - 19 ministries
    - 2 offices
    - 5 governmental departments
    - 18 agencies and regulatory agencies
    - 5 commissions
    - 2 funds
    - 14 health and education public entities
    - 17 other entities (boards, councils, public institutes, services)
  - Category A public enterprises:
    - Originally identified: 28 entities
    - Today: 49 Category A entities
    - Classification breakdown of Category A entities:
      - About 45 percent of the Category A entities should be treated as BCG units
      - 27 percent as EBU
      - 22 percent as public nonfinancial corporations
      - Remainder as public finance corporation and non-profit organization
    - Many Category A entities are not included in BCG data beyond transfers (subsidies/grants); consolidating the full GG could materially change reported fiscal data.
  - EBU sub-sector: 21 entities (1 regulatory agency, 2 commissions, 5 boards, 1 fund, 11 health and education entities, 1 other public service)
  - Local government subsector: 22 entities (6 town councils, 10 town boards, 5 health and education entities, 1 additional public service)
    - Legal constraint: Under Public Finance Act 2017 (PFM Act 2017), a LG authority may not borrow except from Central Government and may issue securities.
  - Social security:
    - Eswatini does not currently operate any social security funds.
    - November 2021: MLSS approved the National Social Security Policy and authorities are considering creation of basic state pension scheme, health insurance fund and workers compensation fund.
    - Entities created to operate social security schemes are typically classified within GG; existing National Provident Fund and Public Service Pension Fund are currently classified outside GG as public financial corporations (pension funds).
  - Public corporations:
    - Total: 17 entities
      - 9 nonfinancial public corporations
      - 8 financial corporations including the ECB, two pension funds under the control of MLSS and Financial Services Regulatory Authority
    - GoE shareholdings in Category A public enterprises range from 75 percent to 100 percent.
  - Market-producer assessment:
    - Evidence of operating losses in some public companies (Royal Eswatini National Airways Corporation, Eswatini Posts and Telecommunications Corporation, Small Enterprises Development Company, Eswatini National Industrial Development Corporation) suggests reliance on Central Government support and need for market tests to determine nonmarket vs market producer status.
    - Market test should be carried out regularly on an entity-by-entity basis.

- Minority shareholdings (treated as private companies; recorded as equity in GFS):
  - Maloma Colliery: 25 percent of shareholding
  - Macmillan Eswatini (Pty) Ltd: 30 percent of shareholding
  - Royal Swaziland Sugar Company: 6.5 percent of shareholding
  - Africa Reinsurance Corporation: 0.25 percent of shareholding
  - Nedbank Swaziland Limited: 22.35 percent of shareholding
  - Standard Bank Limited: 25 percent of shareholding

- Non-profit institutions:
  - Identified total: 16 NPI (associations, fund, foundations, schools, clinics)
  - NPIs receiving government funds are not classified as part of GG unless government control is established (GFSM 2014, paragraph 2.61).

- Recommendations and targets related to institutional coverage:
  - Review and validate PSIT:
    - (i) Review and validate list of entities to ensure it is complete;
    - (ii) Evaluate classification of public entities in accordance with GFSM 2014;
    - (iii) Publish the final PSIT on the authoritieś official website.
    - Responsible: TWG
    - Target Date: December 2022
  - Conduct market tests. Create procedures to conduct annual market test to public enterprises to ensure proper classification.
    - Responsible: TWG
    - Target Date: December 2022

### Source data for GFS and PSDS compilation
- Inventory and key source providers (as of July 2022):
  - Revenue:
    - Taxes: ERS
    - Other Taxes: ERS/Treasury
    - Grants: MEPD
    - Social Contributions: PSPF and ENPF
    - Other Revenue: Treasury
  - Expense: collected from Treasury (by economic nature; by function (COFOG))
  - Assets (Annual/Quarterly) — nonfinancial and financial:
    - Fixed Assets, Inventory, Valuables, Nonproduced assets
    - Financial assets by instrument:
      - Domestic: Currency and Deposits (Treasury/ECB); Debt Securities; Loans; Equity and Investment Fund; Others Accounts Receivables; External
    - Financial assets by debtor: Domestic; External
  - Liabilities (Annual/Quarterly):
    - Liabilities by instrument:
      - Domestic: Currency and Deposits (DMU/Treasury/ECB); Debt Securities (DMU/ECB); Loans (DMU); Others Accounts Payables (Treasury)
      - External: Debt Securities; Loans
    - Liabilities at Nominal/Market value (Domestic/External)
    - Liabilities at Face Value (Domestic/External)
    - Liabilities by Creditor (Domestic/External)
  - Data collection notes:
    - EBU data for revenue, expense, assets, liabilities should be collected from EBU financial statements.
    - LG data for revenue, expense, assets, liabilities should be collected from MHUD.
    - SOE data for revenue, expense, assets, liabilities should be collected from PEU.
    - Stocks/Flows data sources indicated across DMU, Treasury, ECB, PEU as relevant.

- Specific observations and recommendations:
  - Annual Statement of Assets and Liabilities from Treasury is a potential source for financial assets and liabilities; should be reconciled with ECB for currency and deposits.
  - Treasury working group compiling tangible assets inventory could assist valuation of nonfinancial assets for a full balance sheet under GFSM 2014.
  - IFMIS (Integrated Financial Management Information System) is under development and expected to improve compilation process; no operational date known.
  - Authorities are in process of adopting IPSAS.
  - High-frequency (monthly or quarterly) data were not provided during the mission; mission strongly recommended compiling and disseminating high-frequency data during the year, even if preliminary and updated when final data become available.
  - Transactions recording:
    - Revenue recorded on a cash basis.
    - Some expense items and transactions in nonfinancial assets recorded on a noncash basis.
    - Below-the-line data incomplete: no transactions recorded in other accounts payable; this may contribute to large statistical discrepancies between above and below the line data reported to IMF GFS Database.
  - Local government data gap:
    - No data currently available for LG; MHUD is theoretically responsible for LG data collection and compilation.
    - 2018/19 municipal income (excluding Government grants) for two largest municipalities:
      - Mbabane: SZL130 million
      - Manzini: SZL 88 million
    - These figures suggest LG subsector could have reasonably large revenues and expenditures warranting inclusion in GFS; mission recommended TWG follow up and set deadlines for MHUD to collect and compile GFS for LG.

*International Monetary Fund — Kingdom of Eswatini, Chapter 5.2: Expansion of instrument and institutional coverage of debt statistics*

### 39.      EBU source data required for GFS compilation is available for some units. During

### 1swzea2022001 - 39.      EBU source data required for GFS compilation is available for some units. During

### Availability of EBU and public enterprise source data
- EBU source data required for GFS compilation is available for some units.
- During FY 2019-2021 transfers from BCG to EBU represent on average about 50 percent of total grants expense (about 3 percent of GDP).
- Financial statements of some “Category A” public entities are available in an excel file entitled “Public Enterprises Performance Model”, created by the Public Enterprise Unit (PEU) of the Treasury Department.
- The file presents main aggregates: total assets, operating surplus, operating revenue, fixed assets, current assets, current liabilities, total debt outstanding and others.
- Limitations of the file:
  - Does not present sufficiently detailed information needed to allow compilation of comprehensive GFS.
  - Format needs revision to facilitate transformation of financial data into GFS.
  - Presents indicators for Category A public enterprises without separating subsectors indicated by GFSM 2014 – EBU and public corporations.
- Recommended action: revise file structure and add detailed data from notes of public enterprises' financial statements.

### Debt statistics system (CSM)
- Debt statistics source data are recorded and managed on the new CSM system.
- CSM system features:
  - Operating for less than a year in the GoE.
  - Advanced functionalities, reporting module with search features, analytical reports with customization, automated reports for disclosing debt.
- Current challenges:
  - Source data availability and the need to clean up data recorded in the system.
  - Reports configured to calculate gross and net debt, but due to lack of data on financial assets, reports present gross debt equals net debt.
  - No document defining terms used in the system; a Glossary of main terms is needed.

### Fiscal year alignment
- All public enterprises have the same financial year commencing on April 1st and ending on March 31st of the following year, facilitating compilation and consolidation of fiscal statistics.

### Targeted data collection (Target Date: September 2023)
- Make Efforts to collect data on the following:
  - BCG fiscal data: (i) nonfinancial asset stock and flow data; (ii) high frequency fiscal data; (ii) ensure deposit data is reconciliated with ECB;
  - LG detailed financial reports. For the purpose of starting compilation of GFS for LG.
  - EBU detailed financial reports. For the purpose of starting compilation of GFS for EBU.
- Responsible: TWG

### Revise Public Enterprises Performance Model (Target Date: December 2022)
- Revise the Public Enterprises Performance Model Excel file:
  - (i) Add detailed data from financial statement notes and (ii) revise structure of the file to better support transformation of data into GFS.
- Responsible: PEU

### Improve debt data in the CSM (Target Date: September 2023)
- Improve debt Data in the CSM:
  - (i) Clean up and validate existing debt data in the system to ensure it reflects actual figures;
  - (ii) Input financial asset data into the system to ensure it can produce net debt numbers; and
  - (iii) Create a glossary of the terms and formulae reported in the system.
- Responsible: DMU

---

### GFS compilation and dissemination — key observations
- The PFM Act 2017 requires MOF to compile and publish GFS in accordance with best acceptable international standards.
- MOF compiles and disseminates GFS for the BCG and submits detailed revenue (GFS Table 1), expense (GFS Table 2) and transactions in assets and liabilities (GFS Table 3) to the IMF GFS database.
- For fiscal years ending 2020 and 2021, GFS presents large statistical discrepancies of > SZL 1 billion, (>1 percent of GDP).
- Statistical discrepancy is normal and acceptable when reported as below 1 percent of GDP; FY 2018/2019 statistical discrepancy is not considered very significant.

### BCG — Statement of Operations on Cash Basis (Table 4; Unit: Million SZL)
- As of end of March:
  - Revenue: 2018/2019 15,710.24; 2019/2020 17,771.80; 2020/2021 18,806.44
  - Expense: 2018/2019 16,455.36; 2019/2020 16,868.22; 2020/2021 17,753.13
  - Net operating balance (1-2): 2018/2019 -745.12; 2019/2020 903.58; 2020/2021 1,053.31
  - Net/gross investment in nonfinancial assets (31): 2018/2019 3,342.21; 2019/2020 4,679.05; 2020/2021 5,491.58
  - Expenditure (2+31) (2M): 2018/2019 19,797.57; 2019/2020 21,547.26; 2020/2021 23,244.71
  - Net lending (+)/Net borrowing (-) (1-2-31) or (1-2M) (NLB): 2018/2019 -4,087.33; 2019/2020 -3,775.47; 2020/2021 -4,438.27
  - Net acquisition of financial assets (32): 2018/2019 -953.39; 2019/2020 461.81; 2020/2021 -141.52
  - Net incurrence of liabilities (33): 2018/2019 3,318.60; 2019/2020 3,076.70; 2020/2021 5,873.15
  - Statistical discrepancy: NLB vs Financing (32-33-NLB) (NLBz): 2018/2019 -184.65; 2019/2020 1,160.58; 2020/2021 -1,576.40
- Memorandum items:
  - GDP (IMF): 2018/2019 62,400.00; 2019/2020 66,300.00; 2020/2021 71,800.00
  - Revenue/GDP: 25.18%; 26.80%; 26.20%
  - Expense/GDP: 26.37%; 25.40%; 24.70%
  - NLB/GDP: -6.55%; -5.70%; -6.20%
  - NLBz/GDP: -0.30%; 1.80%; -2.20%
- Source: MOF/BEAD

### Causes of statistical discrepancies and data consistency issues
- Multiple data sources using different compilation criteria contributes to discrepancies.
- Different accounting methods (cash vs. accrual) are used to record transactions, possibly leading to inconsistencies between above-the-line and below-the-line transactions.
- Specific concerns:
  - Flows of government deposits reported by ECB and Treasury are not easily reconciled.
  - Stock and flows of loans provided could not be reconciled.

### Use of MTFF and alignment with GFSM 2014
- GFS is compiled from fiscal data that has been bridged to MTFF.
- Bridging MTFF to compile GFS introduces risks to consistency and accuracy.
- Comparative review (FY 2018–2020) shows:
  - Revenue is aligned with insignificant differences.
  - Expenditure presents significant differences between GFS and MTFF; MTFF expense is consistently higher than GFS expense.
  - Net incurrence of liabilities reported with significant differences.
  - Transactions in financial assets are well aligned, but liabilities and above-the-line expenditure differences result in larger statistical discrepancies in MTFF.
- Recommendation: authorities should consider fully migrating MTFF to GFSM 2014 standards and review GFS compilation file to ensure all transactions are captured correctly.
- Authorities indicated GFS data submitted to IMF GFS database is preliminary while MTFF reflects actual data; GFS for FY 2018-2021 should be resubmitted.

### Comparative cash flows from Operating Activities vs. MTFF (Table 5; Unit: Million SZL)
- Selected entries, As of end of March:
  - Revenue (MTFF vs GFS): 2018/2019 15,684.11 vs 15,710.24 (MTFF minus GFS -26.13); 2019/2020 17,893.13 vs 17,771.80 (121.33); 2020/2021 19,267.65 vs 18,806.44 (461.20)
  - Expense (MTFF vs GFS): 2018/2019 19,996.70 vs 16,455.36 (3,541.33); 2019/2020 23,402.21 vs 16,868.22 (6,534.00); 2020/2021 23,594.07 vs 17,753.13 (5,840.93)
  - Net/gross investment in nonfinancial assets (31) (MTFF vs GFS): 2018/2019 3,337.19 vs 3,342.21 ( -5.02); 2019/2020 5,758.70 vs 4,679.05 (1,079.65); 2020/2021 4,999.17 vs 5,491.58 (-492.41)
  - Expenditure (2+31) (MTFF vs GFS): 2018/2019 23,333.89 vs 19,797.57 (3,546.32); 2019/2020 29,160.91 vs 21,547.26 (7,613.65); 2020/2021 28,593.23 vs 23,244.71 (5,348.52)
  - Net lending / Net borrowing (NLB) (MTFF vs GFS): 2018/2019 -7,649.78 vs -4,087.33; 2019/2020 -11,267.78 vs -3,775.47; 2020/2021 -9,325.58 vs -4,438.27
  - Net acquisition of financial assets (32) (MTFF vs GFS): 2018/2019 -953.34 vs -953.39 (0.05); 2019/2020 389.83 vs 461.81 (-71.99); 2020/2021 -182.90 vs -141.52 (-41.38)
  - Net incurrence of liabilities (33) (MTFF vs GFS): 2018/2019 3,342.15 vs 3,318.60 (23.55); 2019/2020 3,838.21 vs 3,076.70 (761.51); 2020/2021 5,233.15 vs 5,873.15 (-640.00)
- Memorandum items (GDP and ratios) presented in Table 5 with specific values for each year; notable percentage discrepancies between MTFF and GFS presentations for Revenue/GDP, Expense/GDP, NLB/GDP, and Statistical Discrepancy/GDP.
- Source data: MOF/BEAD

### Recommendations and target dates for GFS compilation improvements
- Annual BCG GFS (Target Date: December 2022)
  - (i) Finalize and validate GFS Questionnaire for FY 2021/22 (Tables 1, 2 and 3) and disseminate through the IMF GFS database;
  - (ii) Revise previous years GFS questionnaires with preliminary data and ensure to resubmit to the IMF GFS database actual final data; and
  - (iii) Create routine to reconcile GFS statement of operations with MTFF.
  - Responsible: MOF/BEAD
- Compilation of high frequency BCG (Target Date: December 2022)
  - Create compilation procedure upon collection of source data.
  - Responsible: MOF/BEAD
- Fully migrate MTFF to GFSM 2014 standards (Target Date: December 2023)
  - Create a process that can easily identify differences in the presentations.
  - Responsible: MOF/BEAD
- Automate the compilation process (Target Date: September 2024)
  - Develop a Business Intelligent platform to support with the automatization of GFS compilation.
  - Responsible: TWG

### Functional expenditures (COFOG)
- COFOG is under development by MOF and is currently limited to BCG.
- Source data from public entities outside BCG are not detailed enough or are nonexistent to compile COFOG for the entire GG.
- Table 6: BCG – COFOG Sum of FY 2018–2021 (Unit: Million SZL) — selected items by year:
  - 701 General Public services: 2019 2,605.67; 2020 3,451.70; 2021 3,808.91
  - 702 Defense: 994.82; 1,019.17; 966.68
  - 703 Public Order and Safety: 1,933.54; 1,767.95; 1,813.44
  - 704 Economic Affairs: 385.70; 639.26; 1,173.91
  - 705 Environmental Protection: 15.09; 21.28; 55.21
  - 706 Housing and Community amenities: 60.35; 71.49; 526.79
  - 707 Health: 1,807.63; 1,640.79; 2,007.59
  - 708 Recreation, culture and religion: 57.78; 104.13; 169.25
  - 709 Education: 3,054.60; 2,776.91; 3,922.33
  - 710 Social Protection: 40.71; 57.31; 1,814.36
  - TOTAL COFOG sums: 2019 10,955.91; 2020 11,549.99; 2021 16,258.50
  - 2M Tables 2 + 31 (Expenditure): 2019 19,797.57; 2020 21,547.26; 2021 23,244.71
  - Consistency check (Expenditure gap): 2019 8,841.67; 2020 9,997.27; 2021 6,986.22
- Recommendation (Target Date: December 2023)
  - Compile BCG COFOG: (i) Finalize compilation of COFOG; (ii) check COFOG consistency, comparing Expenditure (7) = Expenditure (2+31); and (iii) start disseminating through IMF GFS database.
  - Responsible: MOF/BEAD

### Balance sheet data and preliminary financial balance sheet
- Balance sheet is a core GFS component recording stocks of assets, liabilities, and net worth.
- Mission prepared a draft financial balance sheet in the GFS Framework using the Treasury Department's annual Statement of assets and liabilities.
- Practical reconciliation issues:
  - Impossible to reconcile currency and deposits between Treasury and ECB.
  - Treasury reports deposits inflows and outflows separately; ECB reports deposit as net figures of a fungible account.
  - ECB reports government balances in local and foreign currency including accrued interest (accrual basis); Treasury uses cash basis.
  - Statement of assets and liabilities does not allow split between domestic and external assets and liabilities.
  - Debt liabilities reported by Treasury were hard to reconcile with DMU figures; mission suggested use of DMU figures for compiling Financial Balance Sheet.
- Treasury statement provides potential source for loans assets, other accounts receivable and payable; identified advances as mainly loans and items 6218 and 6318 as other accounts receivable and payable.
- First draft of Finance Balance Sheet used:
  - Currency and deposits from ECB;
  - Loans assets, other accounts receivable and payable from Treasury;
  - Debt liabilities from DMU.
- Assets missing and requiring further work: government equity assets.

### Preliminary BCG – Financial Balance Sheet (Table 7; Unit: Million SZL)
- Financial Balance Sheet BCG:
  - Financial assets [621+622]: 2018/2019 6,038.79; 2019/2020 5,534.94; 2020/2021 6,533.10
    - 621 Domestic: same as above
    - 6212 Currency and deposits: 3,002.65; 2,194.75; 3,771.20
    - 6214 Loans: 455.73; 491.75; 466.09
    - 6218 Other accounts receivable: 2,580.41; 2,848.44; 2,295.78
    - 622 External: 0.00; 0.00; 0.00
  - Liabilities [631+632]: 2018/2019 16,197.40; 2019/2020 21,857.28; 2020/2021 23,457.29
    - 631 Domestic: 14,555.23; 18,735.18; 20,332.75
      - 6313 Debt securities: 5,640.39; 6,653.66; 8,058.69
      - 6314 Loans: 1,444.90; 1,796.77; 1,501.60
      - 6318 Other accounts payable: 7,469.94; 10,122.10; 10,772.46
    - 632 External: 1,642.20; 3,122.10; 3,124.50
      - 6324 Loans: 1,642.17; 3,122.10; 3,124.54
- Source data: MOF/BEAD & Treasury

### Financial Balance Sheet recommendations (Target Date: December 2023)
- Compile and disseminate BCG Financial Balance Sheet (Table 6 of the GFS Questionnaire):
  - (i) Finalize the exercise initiated during the mission;
  - (ii) Replicate the exercise to other years; and
  - (iii) Compile and report GFS Questionnaire Table 6.
- Responsible: MOF/BEAD

### Public Sector Debt Statistics (PSDS)
- Kingdom of Eswatini compiles and disseminates BCG debt statistics to the joint World Bank/IMF Quarterly Public Sector Debt database.
- Annual debt data compiled in accordance with PSDSG 2011; coverage is limited to the BCG, although some debt data is available for some other public sector enterprises.

*Source: 1swzea2022001 - content unit provided (Kingdom of Eswatini, IMF mission report excerpts).*

### 57.      Debt data is provided by instrument, counterpart (external and domestic) and

### 57.      Debt data is provided by instrument, counterpart (external and domestic) and 

### Data coverage, CSM capabilities, and validation status
- The CSM can automatically produce reports that allow debt by instruments, by maturity, by currency of denomination and maturity, type of interest, residency (domestic and external), by counterpart, debt services and others and in different time frequencies - daily, monthly, quarterly and annually.
- Expanding instrument coverage from D1 (debt securities and loans) to cover all debt instruments remains challenging due to the lack of available source data.
- Debt at nominal values is available in the CSM, but for years before 2021 they need to be properly reconciled between the valuation methodologies.
- DMU is still validating data entries in the CSM and only able to validate debt numbers for FY 2020/2021.
- Authorities indicated issues related to comprehensiveness of the data recorded and available that reflect real debt situation, particularly related to disbursements for fiscal years before 2021.
- The authorities are only able to validate FY 2021 numbers and are working on the CSM to clean entries and ensure debt data for fiscal years before 2020 reflect actual numbers.

### Annual gross debt (face value) — Table 8 (Unit: Million SZL)
- Face Value 2018 2019 2020 2021
- Debt Instruments 14,696.83 17,937.39 21,341.72 27,096.03
- Domestic 7,639.13 8,777.09 10,780.64 16,595.92
- Debt securities 6,194.59 6,982.20 9,281.06 13,573.58
- Loans 1,444.53 1,794.89 1,499.59 3,022.35
- External 7,057.70 9,160.31 10,561.07 10,500.10
- Loans 7,057.70 9,160.31 10,561.07 10,500.10
- Source: MOF/DMU – CSM, July 2022

### Meridian system valuation and fair value
- The Meridian System produces debt figures valued under nominal, face and fair value.
- GFSM 2014 proposes that stock positions be valued at market value, but recognizes not all debt instruments can be valued at market value and suggests also valuation of debt instruments under nominal value.
- No market valuation is clearly available in the CSM; however, a fair value is reported.
- GFSM 2014, paragraph 3.115: fair value is a market-equivalent value defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arms-length transaction.
- Definition of the terms used in the Meridian system were not available to ensure if fair value would be a good proxy for market value, particularly for treasury bills and bonds that are tradeable instruments.

### Stock-flow checks and integrated balance (face value) — Table 9 (Unit: Million SZL)
- 2019 Closing Balance, Disburse., Amort., OEF, 2020 Closing Balance, Disburs., Amort., OEF, 2021 Closing Balance
- Debt Securities: 6,982.20 2,914.87 616.01 0.00 9,281.06 8,866.13 4,491.29 0.00 13,655.89
- Loans: 10,955.19 4,198.43 762.99 -2,329.98 12,060.66 6,965.64 5,242.46 -343.71 13,440.13
- Total: 17,937.39 7,113.30 1,379.00 -2,329.98 21,341.72 15,831.77 9,733.75 -343.71 27,096.03
- Source : MOF/DMU – Meridian, July 2022

### Other Economic Flows (OEF), parity change, and exchange rate effects
- No Other Economic Flows (OEF) are recorded for debt securities, but are applicable to loans.
- Debt securities stocks and flows are well integrated in 2020 and 2021 – the change of stocks (at face value) is fully explained by the transactions reflecting no OEFs due to revaluation.
- Transactions don’t fully explain the change in the stock of loan liabilities because much of the external loans to Eswatini are denominated in foreign currencies.
- GFSM 2014, paragraph 3.31: OEF represent changes in the volume or value of assets or liabilities that are not generated by transactions.
- Example: when the amount of a debt is expressed in foreign currency such as US$, the value in domestic currency can change due to exchange rate impact even if the stock of debt in US$ is unchanged.
- The mission assumes that “parity change” figures obtained from the CSM would be a proxy for OEF as they are shown as residual amounts and, according to the authorities, reflect mainly the impact of exchange rate movements on external loans denominated in foreign currencies.
- Authorities admitted that disbursements of 2020 and previous years might not be fully captured in the system, meaning that the total amount reported under Table 9 might not all be related to OEF.

### Recommendations and implementation targets
- December 2022: Finalize and disseminate quarterly debt statistics of the BCG for FY 2019-2022 to the joint World Bank/IMF quarterly debt database. — Responsible: DMU
- December 2023: Incorporate Other Accounts Payable into the existing debt statistics for the BCG. — Responsible: DMU
- December 2023: Implement a phased approach to expand instrument and institutional coverage with aim to report all debt instruments of the entire public sector. — Responsible: DMU
- Fair and market valuation methods: Clarify the definition of fair value in the system and ensure it can be a good proxy for market values. — Responsible: MOF/DMU
- December 2022: Ensure that “Parity change” aggregate generated by the CSM represents OEF and not something else. — Responsible: DMU

*Source: MOF/DMU – CSM and Meridian outputs; Mission report text and tables, July 2022.*

### Appendix IV. Public Sector Institutional Table

### Appendix IV. Public Sector Institutional Table

### Public sector institutional coverage (as of end of March 2022)
- Institutional classification uses codes and groupings appearing in the source: GG (GENERAL GOVERNMENT), CG (CENTRAL GOVERNMENT), BCG (BUDGETARY CENTRAL GOVERNMENT), EBU (EXTRABUDGETARY UNITS), LG (LOCAL GOVERNMENTS), PC (PUBLIC CORPORATIONS), PNFC (PUBLIC NONFINANCIAL CORPORATIONS), PFC (PUBLIC FINANCIAL CORPORATIONS).
- BCG includes ministries, sovereign entities, agencies, regulatory agencies, commissions, departments, public services, public institutes, boards, funds, hospitals, clinics, schools, and town councils as listed under COUNT and CODE columns.

### Selected central government and budgetary central government entities (extract)
- Examples of sovereign entities and central offices:
  - Parliament (Code 02) — Sovereign entity
  - Private and Cabinet Offices (Code 03) — Sovereign entity
  - King's Office (Code 52) — Sovereign entity
- Selected ministries and associated agencies/regulators:
  - Ministry of Tourism & Environmental Affairs (Code 04) and associated Eswatini Tourism Authority (Code 10128) — Regulatory agency
  - Ministry of Natural Resources and Energy (Code 10) and Eswatini Energy Regulatory Authority (Code 10414) — Regulatory agency
  - Ministry of Education & Training (Code 30) with University of Eswatini (Code 10211) — University; Eswatini Higher Education Council (Code 10025) — Regulatory agency
  - Ministry of Finance (Code 34) with Eswatini Revenue Authority (Code 10008) — Department; Financial Intelligence Unit (Code 10015) — Public institute; Eswatini Public Procurement Regulatory Agency (Code 10150) — Agency
  - Ministry of Health (Code 45) and multiple health facilities listed (clinics, hospitals, councils)
- Extrabudgetary units (EBU) include commissions, boards, hospitals, schools, and funds. Selected EBUs shown with “Under Head” references (e.g., Eswatini National Trust Commission Code 10106 — Under Head 6).

### Local governments (LG) (selected)
- Town councils and town boards listed include:
  - Mbabane City Council (Code 10030) — Town council
  - Manzini City Council (Code 10031) — Town council
  - Nhlangano Town Council (Code 10032) — Town council
  - Piggs Peak Town Council (Code 10033) — Town council
  - Siteki Town Council (Code 10034) — Town council
  - Matsapha Town Council (Code 10035) — Town council

### Public corporations and ownership (PC, PNFC, PFC)
- Public nonfinancial corporations (PNFC) state ownership details (as listed):
  - Pigg's Peak Hotel and Casino — SOE — 100%
  - Royal Swazi National Airways Corporation — SOE — 50%
  - Eswatini Electricity Company — SOE — 100%
  - Eswatini Posts and Telecommunications Corporation — SOE — 100%
  - Eswatini Railway — SOE — 100%
  - Eswatini Water Services Corporation — SOE — 100%
  - Small Enterprises Development Company — SOE — 100%
  - Eswatini National Industrial Development Corporation — SOE — 100%
  - Eswatini National Petroleum Company — SOE — 100%
- Public financial corporations (PFC) state ownership details (as listed):
  - Central Bank of Eswatini — SOE — 100%
  - First Finance Company — SOE — 80%
  - Eswatini Development Finance Corporation — SOE — 80%
  - Eswatini Development and Savings Bank — SOE — 100%
  - Eswatini Royal Insurance Corporation — SOE — 48%
  - Public Service Pension Fund — SOE — 100%
  - Eswatini National Provident Fund — SOE — 100%
  - Financial Services Regulatory Authority (Code 10009) — Regulatory agency — Under Head 34

### Appendix V — Category A Public Enterprises (selection)
- The appendix enumerates Category A public enterprises and their acronyms. Examples include:
  - Baphalali Eswatini Red Cross Society — BERCS
  - Eswatini Electricity Company — SEC
  - Eswatini Energy Regulatory Authority — ESERA
  - Eswatini Higher Education Council — ESHEC
  - Eswatini National Provident Fund — ENPF
  - Eswatini Posts and Telecommunications Corporation — EPTC
  - Eswatini Water Services Corporation — EWSC
  - University of Eswatini — UNESWA
- The list in the source continues to identify Category A enterprises by name and acronym up to entry 49 (University of Eswatini — UNESWA).

### Appendix VI — Statement of Assets and Liabilities (selected lines and totals)
- ASSETS (GFS Code and values)
  - Bank Accounts (6212): 772,182,521.46 (2018/2019); 751,237,514.88 (2019/2020); 881,762,718.66 (2020/2021)
  - Cash Accounts (6212): 212,666,941.31 (2018/2019); 224,987,847.45 (2019/2020); 230,607,042.72 (2020/2021)
  - Employee Advances (6214): 370,516,716.77 (2018/2019); 404,235,601.75 (2019/2020); 412,912,054.13 (2020/2021)
  - Sundry Investments (6212): 2,799,271,817.67 (2018/2019); 2,808,587,383.93 (2019/2020); 3,195,986,784.51 (2020/2021)
  - Other Investments (6212): 603,263,156.03 (2018/2019); 610,086,263.15 (2019/2020); 657,543,745.31 (2020/2021)
  - Treasury Bills (6212): 221,889,103.41 (2018/2019); 20,741,018.49 (2019/2020); 513,540,706.65 (2020/2021)
  - Capital Fund (6218): 72,245,973.83 (2018/2019); 90,840,034.30 (2019/2020); 23,676,407.87 (2020/2021)
  - Sundry Deposits (6218): 611,586,032.63 (2018/2019); 896,599,569.03 (2019/2020); 385,127,021.55 (2020/2021)
  - Special Fund (6218): 1,410,774,056.53 (2018/2019); 1,410,815,826.56 (2019/2020); 1,391,585,723.35 (2020/2021)
  - Accrued Liabilities (6218): 349,951,024.34 (2018/2019); 314,550,868.11 (2019/2020); 411,236,333.18 (2020/2021)
  - Total ASSETS: 7,958,752,898.94 (2018/2019); 8,712,082,078.83 (2019/2020); 9,593,904,752.89 (2020/2021)

- LIABILITIES (GFS Code and values)
  - Capital Fund (6318): 6,452,582,523.07 (2018/2019); 7,320,090,832.52 (2019/2020); 8,678,484,068.37 (2020/2021)
  - Accounts Payable (6318): 357,942,166.75 (2018/2019); 2,209,257,219.40 (2019/2020); 1,317,219,784.83 (2020/2021)
  - Sundry Deposits (6318): 607,564,002.44 (2018/2019); 643,930,095.01 (2019/2020); 723,020,736.70 (2020/2021)
  - Special Fund (6314): 2,147,575,742.83 (2018/2019); 2,349,906,189.70 (2019/2020); 2,806,039,020.82 (2020/2021)
  - Reserves (6312): 1,443,378,847.47 (2018/2019); 1,345,661,236.70 (2019/2020); 1,220,903,233.15 (2020/2021)
  - Treasury Bills (6312): 1,667,742,990.35 (2018/2019); 1,640,197,234.16 (2019/2020); 2,083,378,753.23 (2020/2021)
  - Government Stock (6315): 1,355,146,439.67 (2018/2019); 1,355,146,439.67 (2019/2020); 1,355,146,439.67 (2020/2021)
  - Consolidated Fund (Revenue minus Expenditure): -11,405,860,096.42 (2018/2019); -13,464,669,283.85 (2019/2020); -13,346,417,454.24 (2020/2021)
  - Trading Accounts-Sundry (6312): 627,554,838.11 (2018/2019); 721,716,406.80 (2019/2020); 460,986,138.06 (2020/2021)
  - Bank Accounts (6212) — reconciliation issue: 2,878,679,524.71 (2018/2019); 2,737,963,171.92 (2019/2020); 2,580,318,663.11 (2020/2021)
  - Cash Accounts (6312) — reconciliation issue: 1,418,044,126.31 (2018/2019); 1,367,069,290.24 (2019/2020); 1,279,939,383.96 (2020/2021)
  - TOTAL LIABILITIES: 7,958,752,898.94 (2018/2019); 8,712,082,078.83 (2019/2020); 9,593,904,752.89 (2020/2021)

- Notes on statement:
  - GFS Codes are recorded alongside each line item as presented in the source (examples: 6212, 6214, 6218, 6312, 6314, 6315, 6318).
  - Source data for assets and liabilities: MOF/Treasury.

*Source: MOF/BEAD, MOF/Treasury and other Government official documents and websites as compiled in the IMF Appendices.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2022/english/1swzea2022001.pdf_