For 2025/2026 financial year, the government projects total spending to 65 percent of Gross Domestic Product (GDP), with recurrent expenses at 48.8 percent of GDP.
This was disclosed by the Minister of Finance and Development Planning Dr Rets’elisitsoe Matlanyane when presenting 2025/2026 budget estimates in Parliament on Wednesday.
She said a significant development in the country’s expenditure framework is the substantial increase in capital expenditure to 21.2 percent of GDP, reflecting commitment to infrastructure development and economic growth.
She also revealed that the public wage bill is projected to be maintained at 17.2 percent of GDP whilst preparatory works are being advanced to implement the requisite public service pay structural reforms.
“For expenditure in 2025/26, we have budgeted total spending of M 24,139.2 Million while recurrent expenses are projected at M18.813.2 Million, reflecting our commitment to efficient public service delivery ” she added, saying capital expenditure is set to increase to M5, 326.0 Million as the country continues to invest in critical infrastructure and development projects.
Dr. Matlanyane further outlined fiscal challenges that demand the country’s immediate attention, mentioning Lesotho’s heavy reliance on SACU revenues, pressures from external economic shocks, including global market uncertainties and regional economic fluctuations that could impact Lesotho’s trade relations and revenue streams as some of the challenges.
She therefore emphasized that the 2025/2026 speech focused on inclusive growth and is aligned with the extended National Strategic Development Plan II, saying priorities include boosting agriculture, manufacturing, tourism, energy, infrastructure development and information technology while enhancing healthcare, education and social protection.
” The budget also targets infrastructure improvements in energy, water, transport, waste management and strengthens governance and public financial management ” she added.
This was Dr Matlanyane`s third budget estimates presentation in Parliament since the new government, led by Mr Samuel Matekane.
Source: Lesotho News Agency (20/2/2025)
