Lesotho Times
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Budget fails to address unemployment and poverty – MPs 

DC leader Mathibeli Mokhothu

Mohloai Mpesi 

MEMBERS of Parliament (MPs) have launched a scathing attack on the 2026/27 national budget, arguing that it fails to confront Lesotho’s most pressing socio-economic challenges, particularly youth unemployment and poverty. 

The criticism followed the presentation of the budget by the Minister of Finance and Development Planning, Retšelisitsoe Matlanyane, at a joint sitting of the National Assembly and Senate yesterday. 

Political leaders, mostly from the opposition side, said the budget does not sufficiently respond to issues affecting the daily lives of Basotho, saying unemployment, especially among the youth, remains stubbornly high despite repeated government pledges to contain it. 

The outcry over unemployment intensified last year when Prime Minister Sam Matekane declared it a national disaster and publicly committed to creating 62 000 jobs for young people, a promise opposition MPs say has yet to materialise. 

In her budget speech, Dr Matlanyane argued that the yet-to-be-passed Youth Development Bill would be central to tackling youth unemployment. 

“The era of ‘nothing for the youth without the youth’ starts now. Once enacted, the Youth Development Act will mandate, among other things, the inclusion of youth representatives on the boards of public institutions and agencies that deal with youth-centric issues, from education to sports and trade,” Dr Matlanyane said. 

“We have moved from declaring a disaster to delivering a solution. To the youth of Lesotho: this budget is your invitation to the workshop of national development. The tools are now in your hands.” 

She also announced an expansion of the National Volunteer Corps (NVC), saying the government would accommodate 2 500 unemployed graduates for a minimum of 12 months. 

“For 2026/27, we are increasing the budget for the NVC to allow an additional 2 500 placements. The initiative includes a host-partner incentive, where the government subsidises 50 percent of the stipend for any private firm that hosts an NVC volunteer for at least 12 months, with a pathway to permanent employment,” she said. 

However, the Leader of the Democratic Congress, Mathibeli Mokhothu, said the minister failed to spell out how many jobs the budget would actually create. 

“The minister acknowledged high youth unemployment, but when it came to explaining how many jobs would be created, she was silent. 

“She only mentioned 2500 youth placements under the National Volunteer Corps. That figure does not even match the number of Fokothi graduates alone. If unemployment is the biggest problem, she should state how many jobs each ministry will create. That would show seriousness.” 

Mr Mokhothu also criticised the two-percent across-the-board salary increase for public servants, saying it was far below the prevailing inflation rate. 

“Inflation stands between 4.5 and 4.7 percent, yet salaries are increased by only two percent. Food, clothing, transport and electricity costs keep rising, and the standard of living will not improve,” he said. 

He further faulted the budget for failing to address delays in the issuance of identity cards and passports, describing the problem as a daily burden for the public. He also questioned whether the M1.1 billion allocated to agriculture would resolve persistent shortages of inputs such as fertiliser. 

“Basotho are struggling to access fertiliser. With only M1.1 billion allocated, those problems will remain unresolved,” he said. 

HOPE-Mphatlalatsane leader, Machabana Lemphane-Letsie, said the budget lacked commitment, accusing the minister of repeatedly invoking the word “discipline” without demonstrating how it would be enforced. 

She pointed to ongoing legal battles involving the Public Accounts Committee (PAC), including a case against the Ministry of Health over procurement issues at Queen Mamohato Memorial Hospital, as well as previous lawsuits involving the Ministry of Public Works and Transport and the Lesotho Electricity Company. 

“I counted the word ‘discipline’ more than 30 times in the minister’s speech,” she said. 

“When Parliament tries to enforce discipline through oversight, ministries take us to court. Just yesterday we were in court against the Ministry of Health, and today the minister talks about discipline. I see no commitment, but only another speech.” 

She warned that young people should not expect meaningful relief from unemployment, expressing concern over funds reportedly set aside for youth and factories, which she claimed were often distributed through nepotism or political favouritism. 

Matala constituency MP, Tšeliso Moroko, who defected from the ruling Revolution for Prosperity (RFP) to Basotho Action Party this week, said the budget was heavy on rhetoric but light on detail. 

“The main problems facing Basotho are poverty and unemployment. The budget should clearly show which sectors will create jobs and how many. 

“They are playing for the gallery with terms like ‘youth empowerment’ and ‘job creation’ without substance. If a road is built, how many jobs will it create? Without that detail, it’s all for applause,” Dr Moroke said. 

The leader of the All Basotho Convention, Nkaku Kabi, lamented the reduction in the agriculture budget from M1.3 billion to M1.1 billion. 

“Government has shot itself in the foot by cutting agriculture funding,” he said. 

“We say agriculture is the backbone of the economy, yet we import basic food items like cabbages. At least M4 billion should have been shifted from infrastructure to agriculture to bring it to M5 billion.” 

While acknowledging the importance of roads, Mr Kabi argued that increasing investment in agriculture would reduce food imports and support local farmers. 

“I am not happy about the reduction of that budget,” he said. 

 

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