Monday, March 24, 2025
19 C
Maseru

Reason behind zero increase in old age pensions

Business

Ntsoaki Motaung
Ntsoaki Motaung
Ntsoaki Motaung is an award-winning health journalist from Lesotho, specializing in community health stories with a focus on sexual and reproductive health and rights, as well as HIV. She has contributed to platforms like "Be in the KNOW," highlighting issues such as the exclusion of people with disabilities from HIV prevention efforts in Lesotho. In addition to her journalism, Ntsoaki serves as the Country Coordinator for the Regional Media Action Plan Support Network (REMAPSEN). She is also a 2023 CPHIA Journalism Fellow.

The Minister of Finance and Development Planning, Dr. Retšelisitsoe Matlanyane, has defended the government’s decision not to increase old age pensions in the latest budget.

Speaking at a post-budget gala dinner on Wednesday, Matlanyane explained that for the past two years, pensioners had received increases, while grants for orphans, vulnerable children, and people with disabilities remained unchanged.

“When we increased the grants for elderly people in previous years, those with disabilities did not complain,” she said. “However, these vulnerable groups, especially disabled individuals and orphans, face severe conditions.”

She highlighted cerebral palsy as one of the most prevalent and devastating conditions in the country, noting that children affected by it require full-time care, similar to infants, for their entire lives.

“These children need diapers and various other necessities, yet they receive only M250 per month. Meanwhile, elderly people receive M950 per month and still complain when we allocate just M50 more to those with disabilities and other vulnerable groups,” she stated.

Matlanyane urged the public to be more understanding of the government’s efforts to balance social support.

“As a community, we need to recognise why certain decisions are made. Consider the gap between M250 and M950 and the conditions in which these groups live before criticising the adjustments,” she added.

She further mentioned that the country’s macroeconomic situation had improved under the current administration, despite inheriting an economy in disarray.

National University of Lesotho (NUL) lecturer and Monetary Policy Committee member, Dr. Ratjomose Machema, provided an analysis of the 2025/26 budget estimates. While Machema acknowledged potential positive economic impacts for certain sectors, he remained unconvinced about others.

He noted that inflation was below six percent and projected to drop to approximately 4.5 percent in 2026, attributing the decline in the cost of living to growth in the construction sector.

“The government must implement key policies and reforms, as a significant portion of the budget has been allocated to this area. However, the Ministry of Agriculture has received the same funding as before. The question remains: are we seeing tangible improvements?” he asked.

Revenue Services Lesotho (RSL) Commissioner-General, Advocate ‘Mathabo Mokoko, emphasised the importance of collaboration between the government and the private sector to drive economic recovery.

“The national budget serves as a financial blueprint, guiding resource allocation to promote growth, social development, and fiscal sustainability, especially during these challenging times,” Mokoko said.

She called on stakeholders to actively engage and propose practical solutions to maximise economic growth.

“At RSL, this budget shapes our fiscal environment. We must renew our social contract with the people of Lesotho and our stakeholders. We are committed to providing seamless service without fear or favour, investing in digital solutions to enhance compliance, improve efficiencies, and eliminate service bottlenecks,” she stated.

Mokoko reaffirmed RSL’s commitment to fighting corruption and prioritising employee well-being to ensure a sustainable source of government revenue, ultimately improving the livelihoods of Basotho.

“We will continue upholding professional standards, strengthening our integrity and ethical culture. This commitment underscores our intention to institutionalise initiatives such as the cadet program within the RSL family,” she concluded.

- Advertisement -spot_img

Our Staff Profile

Latest article

Send this to a friend