14 Aug 2016

Parliament has given a green light to Minister of Finance and Development Planning Mr Kenneth Matambo’s supplementary budget requests amounting to a total of over P119million to be funded from the consolidated fund.

Presenting the request to Parliament on Friday  (August 12) Mr Matambo said the Ministry of Finance and Development Planning required an additional amount of P114.3 million  under the Agricultural Credit Guarantee Scheme (ACGS) in order to cover the 85 per cent subsidiary to dry land farmers who obtained seasonal loans from Citizen Entrepreneurial Development Agency (CEDA) and NDB while the request under the Ministry of Education and Skills Development amounting to P5 million was for the replenishment of the Contingencies Fund.

“This request follows the declaration by His Excellency the President at the end of June 2016 through the Presidential Directive Cap 18 (A)/2016. 

The subsidy is meant to reduce the farmers’ debt obligations with these lending institutions by 85 per cent of the installments that fell due in the 2015/16 cropping season. 

The farmers are responsible for the remaining 15 per cent of the installments and are assisted provided they have paid their premiums,” he said. Mr Matambo explained that the amount requested was the difference between what was required and the existing balance in the ACGS Special Fund.

Mr Matambo told the House that in March this year  President Lt General Dr Seretse Khama Ian Khama issued a warrant of Expenditure out of the contingencies Fund amounting to P5million pursuant to section 32 (2) of the Public Finance Management Act (Act No 17 of 2011).

“The amount was used to meet a shortfall in the food account of the Department of Secondary Education under the ministry. At the time the amount in the food account was exhausted and several secondary schools around the country were facing food shortages. 

In order to avert crisis funds were sourced from the Contingencies Fund. This supplementary budget therefore intends to replenish the Contingencies Fund,” he said.

Contributing to the debate on the supplementary estimates in Parliament Francistown West MP Mr Ignatius Moswaane said the Finance and Estimates Committee had an opportunity to consult about the requests brought before the House. 

He invited relevant stakeholders to come on board and appreciated the efforts of those who have assisted so far.

MP for Gabane-Mmankgodi Major General Pius Mokgware called on government to introspect on its budgeting system. 

He said requests such as this one were an indication of inefficient budgeting processes.

For his part Gaborone South MP Mr Kagiso Molatlhegi said with the assistance that government was extending to farmers it was high time they embraced new farming technologies and reduce dependence on unreliable rain fed farming.

Letlhakeng-Lephephe MP Mr Liakat Kablay pleaded with government to assist subsistence farmers who were most hard hit by drought. He decried the sad state of supplementary feeding in schools such as Shadishadi, Diphuduhudu and Sojwe amongst others.

Gaborone Bonnington South MP Mr Ndaba Gaolathe applauded the minister for his request and advised that it was time to take coordinated approaches to guarantees, how to model them to minimise financing from the recurrent budget.  He warned that a drought situation with the recent climate change phenomenon may become a permanent feature and may bring serious complications. ENDS