06 Feb 2017

The Minister of Finance and Economic Development, Mr Kenneth Matambo, has proposed a total expenditure of P16.52 billion as development budget for 2017/18 financial year.

Presenting the 2017/18 budget proposals in Parliament yesterday, the minister said of the total amount, P2.94 billion or 17.8 per cent is to be allocated to the Ministry of Mineral Resources, Green Technology and Energy Security.

He said the major projects under this ministry comprise the North West Transmission Grid, Morupule A Power Plant Rehabilitaion and construction of Rakola substation.

It is also proposed that the Botswana Power Corporation (BPC) be allocated P1.46 billion to cover operational costs.

Minister Matambo has also proposed P2.80 billion or 17 per cent for allocation to the Ministry of Land Management, Water and Sanitation Services to be used for implementation of water projects such as the North-South Carrier II to supply water to the southern parts of the country and reticulation of water from Thune Dam to the nearby villages.

The minister said to address the National Development Plan (NDP) 11 priority area of Strengthening of National Safety and Security, the Ministry of Defence, Justice and Security is to get the third largest share of the development budget at P2.76 billion or 16.7 per cent.

He said the money would be used to complete ongoing construction of new police stations and housing, refurbishment of prison facilities and improvements to infrastructure, construction of houses for Botswana Defence Force (BDF) personnel, purchasing of vehicles and upgrading of equipment for the BDF to enhance security capabilities.

Minister Matambo has proposed P1.74 billion for the Ministry of Transport and Communications to cater for Government Data Networks Phase III, Schools Connectivity project, Kazungula and Mohembo bridge construction, rehabilitation of Mmankgodi-Jwaneng road and Rakhuna-Mabule road.

The Ministry of Local Government and Rural Development is also proposed to be allocated P1.74 billion, which is expected to address requirements for social protection, construction of additional facilities for primary schools and village infrastructure in different locations around the country.

“The major projects are village infrastructure for Kang, Tutume and Gabane, primary school facilities backlog eradication countrywide, Ipelegeng and destitute housing, which will address the NDP 11 priority area of Poverty Eradication,” he said. Minister Matambo said the proposed allocation includes P570 million for Community Development projects with each constituency receiving P10 million.

The Ministry of Agriculture and Food Security is to be allocated P983.71 million to cater for different projects such as Integrated Supports Programme for Arable Development (ISPAAD), Livestock Management and Infrastructure Development (LIMID) as well as Pandamatenga Agricultural Infrastructural Development.

Minister Matambo has proposed P844.94 million for the Ministry of Basic Education, of which P731.95 million will be spent on secondary schools to cater for provision of additional ICT facilities as well as construction of staff houses.

“The other major projects include the development of outcome based curriculum and career paths, which are expected to address the NDP 11 priority area of human capital development,” he said. Minister Matambo said the remaining P2.70 billion would be shared among the rest of the ministries and independent departments.

Some of the projects to be funded with the balance include construction and upgrading of health facilities as well as staff houses for health personnel, extension of magistrate courts, enhancing security at Parliament, construction of revenue offices, development of a leather park, refurbishment of Botswana missions in different countries and procurement of electronic voting machines.

The minister has also proposed P1.16 billion to be used for maintenance of facilities throughout the country to extend their economic life. Meanwhile, the 2017/18 National Budget has a deficit of P2.35 billion as the government embarks on undertaking critical priority projects for diversifying the economy.

Minister Matambo said despite the moderate deficit, the country remains committed to restoring positive budget balances in the medium to long term, as part of its standing principle of maintaining fiscal sustainability.

“It is our expectation that attaining fiscal sustainability should result in enhanced economic growth, which is necessary to provide for employment opportunities, eradication of abject poverty and promotion of equitable distribution of the country’s wealth.

In this regard, it is imperative that the country broadens its domestic revenue base and reduce its reliance on diamond revenues, which are susceptible to global economic shocks,” the minister said.

He said concerted efforts would continue during 2017/18 financial year to implement policies, strategies and programmes aimed at developing diversified sources of economic growth, broaden the revenue base and contain expenditure.

Furthermore, complementary efforts to strengthen public finance management will continue to be pursued to ensure efficiency and effectiveness of public spending, he said.

“All these efforts are expected to contribute towards ensuring fiscal sustainability now and in the medium to long term,” Minister Matambo said. ENDS