06 Feb 2017

The Minister of Finance and Economic Development, Mr Kenneth Matambo, has proposed an expenditure of P59.54 billion as total budget for 2017/18 financial year against revenues and grants of P57.19 billion.

This resulted with a budget deficit of P2.35 billion or 1.43 per cent of the GDP, said the minister when presenting the 2017/18 budget proposals in Parliament on Monday February 6.

“This deficit is mainly due to the budgetary provision for power and water projects as well as the implementation of the Economic Stimulus Programme that includes education and health care services,” he said.

Of the P59.54 billion, the ministerial recurrent budget for the 2017/18 financial year amounts to P39.66 billion while P16.52 is for development.

Minister Matambo said the lion’s share of the recurrent budget, P6.80 billion or 17.2 per cent has been proposed for the Ministry of Basic Education.

“This is in line with the commitment made by government to improve education through the implementation of the Education and Training Sector Strategic Plan (ETSSP),” he said.

ETSSP seeks to refocus education and training towards fulfillment of a more diversified and knowledge-based economy, through strengthening the match between qualifications and labour market requirements.

The Ministry of Health and Wellness is to receive the second largest share at P6.59 billion or 16.6 per cent of the recurrent budget to cater for provision of drugs, dressings, vaccines, anti-retroviral therapy, replacement of obsolete medical equipment and the implementation of the Treat All Strategy for HIV/AIDS.

Minister Matambo has proposed P5.62 billion or 14.2 per cent to the Ministry of Local Government and Rural Development for Revenue Supports Grants to Urban and District Councils, provision for food supplies and the Old Age Pension Scheme.

He has also proposed P5.01 billion for the Ministry of Defence, Justice and Security to cover operational costs including maintenance of assets which comprise aircraft, vehicles, buildings and fuel costs.

The Ministry of Tertiary Education, Research, Science and Technology has been proposed to be allocated P4.25 billion to cover student financing in public and private tertiary institutions to parastatals under the ministry such as University of Botswana, Botswana International University of Science and Technology, Botswana Accountancy College, Botswana College of Distance and Open Learning and Botswana Institute of Technology, Research and Innovation.

Minister Matambo has proposed that the remaining balance of P11.39 be shared among the rest of the Ministries and Independent Departments.

Among those expected to receive a significant share are, Ministry of Transport and Communications (P1.97 billion), Ministry of Presidential Affairs, Governance and Public Administration (P1.21 billion), Ministry of

Agriculture (P1.10 billion), Ministry of Investment, Trade and Industry (P936.85 million) and Ministry of Land Management, Water and Sanitation Services (P855.33 million).

Meanwhile, the Minister has also proposed P6.98 billion for Statutory Expenditure for the 2017/18 financial year.

This is to mainly cover servicing of debt obligations, pensions and gratuities, of which the largest share is government contribution to Botswana Public Officers’ Pension Fund. ENDS