Africa-Press – Lesotho. Although the total revenue for 2025/2026 was budgeted at M29. 84 billion, equivalent to 67.2 percent of Gross Domestic Product (GDP), it now stands at M27.53 billion or 92. 3 percent of the target in the year-end projection.
This was said by the Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane when presenting the 2025/2026 mid-term budget review, in the joint sitting of Parliament on Wednesday, under the theme” Building Strategies for Inclusive Growth”.
Dr. Matlanyane indicated that by mid-year, the country had collected M12.87 billion, representing 43.1 percent of the approved budget, adding that the tax revenue, while showing resilience at mid-year, will be under stress for the remainder of the fiscal year, given the subdued macroeconomic environment.
She stated that M5.21 billion had been collected at mid-year against an annual target of 11.23 billion, representing 46.4 percent performance, saying full-year projection of M11.19 billion suggests near-target achievement in normal terms although it masks underlying weakness.
She said without stronger GDP growth, tax buoyancy will remain constrained, limiting the scope for sustained revenue mobilisation.
“Improving normal GDP growth is therefore critical to reinforcing the tax base and ensuring revenue stability going forward” she stressed.
Commenting on debt servicing and public debt trends, she said the total outstanding debt reached M22.98 billion as of September and is up from M21.94 billion of the previous year.
She said this comprises M2.84 billion in domestic debt and M19.13 billion in external debt, saying the increase is mainly due to higher external disbursements, partially offset by M493. 9 million in exchange rate gains.
She indicated that of the M600 million planned from five domestic bond auctions, M404.6 million has been raised from three auctions, indicating that the remaining two are scheduled for December and March, each targeting M100 million.
She also said the government plans to prepay some of the debt obligations during the current fiscal year, to reduce the debt stock.
Meanwhile the joint sitting was chaired by both the Deputy Speaker of the National Assembly Mrs. Ts’epang Mosena and Senate Vice President Mr. Tsukutlane AU.
For More News And Analysis About Lesotho Follow Africa-Press
