02 Feb 2015

The Minister of Finance and Development Planning, Mr Kenneth Matambo on Monday (February 2)  proposed a surplus budget of P1.23 billion for the 2015/16 financial year with total estimates standing at P55.38 billion against an expenditure of P54.38 billion. 

The projected surplus of P1.23 billion or 0.8 per cent of GDP for the 2015/16 financial year will enable government to protect itself from unforeseen challenges, said Mr Matambo. 

“This modest budget surplus will contribute towards rebuilding the country’s net financial assets and provide a cushion in the event of a future shock, as was the case during the recent global financial crisis of 2008/09,” he said. 

A total of P12.93 billion was proposed for the development budget, while P36.70 billion would be for the recurrent budget. 

Minister Matambo said the Ministry of Minerals, Energy and Water Resources hass been allocated a lion’s share of the development budget of P3.32 billion or 25.7 per cent of the total budget to continue addressing water and power problems. 

Among projects the ministry is to undertake are Morupule A refurbishment estimated at P100 million, North-South Water Carrier II at P500 million, Kanye and Molepolole connection to the North-South Water Carrier at P150 million. 

Electrification of villages has been allocated P100 million, North West Power Transmission P50 million, Rakola Power Substation P50 million and Zimbabwe-Zambia-Botswana-Namibia (ZIZABONA) regional power project is to be funded to the tune of P30 million. 

Botswana Power Corporation (BPC) has been allocated P1.5 billion to cover tariff subsidy and some operational expenses while P150 million goes towards construction of an oil storage facility at Tshele Hills in Kgatleng District to address the country’s various energy needs. 

The second largest share of P1.62 billion or 12.5 per cent is allocated to the Ministry of Transport and Communications. 

Minister Matambo said projects earmarked included upgrading of existing ICT infrastructure to optic fibre as well as broadband connectivity in strategic places of Gaborone, Francistown, Maun and Kasane, as well as Maun–Ngoma optic fibre link to facilitate international connectivity at a cost of P300 million. 

Other projects are construction of Kazungula, Thamalakane and Mohembo bridges at P280 million and upgrading of Kasane, Maun and Sir Seretse Khama airports at P265 million. 

The amount also includes upgrading of some existing road junctions and improvements of traffic signals as well as access to Gaborone Central Business District (CBD) at P130 million. 

“The Ministry of Defence, Justice and Security gets the third largest share of the development budget at P1.32 billion or 10.2 per cent of the budget, the bulk of which goes to Botswana Defence Force (BDF) for improving its operational readiness,” the minister said. 

Mr Matambo said the Ministry of Local Government and Rural Development has been allocated P1.2 billion or 9.3 per cent of which P635.6 million is for Ipelegeng programme. 

The primary school backlog eradication receives P341.2 million and village infrastructure development is funded at P151.4 million. 

The Ministry of Agriculture has been allocated P1.1 billion or 8.5 per cent with the bulk - P730 million - going towards implementation of agriculture support schemes such as ISPAAD and LIMID. 

Zambezi Water Development has been allocated P200 million and Pandamatenga Infrastructure Development is allocated P100 million. 

The Ministry of State President has been allocated P1.04 billion or 8 per cent to finance HIV/AIDS at P194.8 million, poverty eradication initiatives at P160 million, e-Governance at P150 million and Digital Migration at P130 million for enhancing business environment. 

Mr Matambo said the balance of P3.33 billion or 25.8 per cent of the proposed development budget is shared by the remaining ministries and departments. 

From this amount, the Ministry of Lands and Housing is allocated P893.3 million or 6.9 per cent of the total development budget. 

Major projects funded include Palapye and Metsimotlhabe land servicing at P250 million, Self Help Housing Agency (SHHA) at P214.7 million and P30 million to fund housing scheme for public officers at salary scale D4 and below. 

The Ministry of Education and Skills Development gets P844.6 million to cater for construction of unified schools at Tshabong and Takatokwane and junior secondary schools at Maun and Francistown at P340 million.  A further P100 million is for the construction of additional teachers’ houses. 

The Ministry of Health has been allocated P203.8 million for the construction of nursing staff houses at various locations and for designs of hospitals to be constructed in Mochudi and Moshupa. 

Minister Matambo said a total of P2.42 billion, i.e. P1.87 billion and P552.20 million under recurrent and development budgets, respectively, has been earmarked for maintenance of public assets. 

He said out of this amount, P978.50 million is for maintenance of buildings, P705.59 million is for maintenance of equipment including computer systems, whilst P374 million is for road maintenance and the balance of P366.13 million is for vehicles and other maintenance. 

On Statutory Expenditure, the minister said the estimates for the 2015/16 financial year stand at P7.93 billion, an increase of P2.39 billion over the current year’s revised budget of P5.54 billion. 

“The growth is principally due to obligations arising from the maturing of government bond BW003 and repayment of loan principals,” he said. 

The budget is intended to address key priority areas of human capital, fight against HIV and AIDS including the elimination of mother to child transmission, poverty eradication, provision of water and power supplies, employment creation, as well as maintenance of existing infrastructure. ENDS