22 Nov 2018

Minister of Finance and Economic Development says his ministry continues to address economic issues raised by Members of Parliament (MPs) during the Budget Pitso.

Giving opening remarks during MPs Budget Pitso in Gaborone yesterday, Mr Kenneth Matambo said some of the issues included lack of transparency in the budgeting process, and calls for the engagement of stakeholders in the early stages of the process.

He said the Pitso was called to address challenges and assured MPs that their input would be included in the 2019 budget speech. In response to MPs’ calls for the review of achievements made since the implementation of NDP 11, Mr Matambo said it would be catered for in thematic working groups (TWGs) presentation.

Other issues raised included addressing the infrastructure backlog as well as water and electricity supply shortages.  Minister Matambo said government continued to invest heavily in infrastructure development, including road network, schools and dams to improve water supply as well as electricity capacity expansion.

On promoting private sector-led growth and ease of doing business, he said government has pursued a number of reforms on doing business to increase competitiveness and private sector participation.

Mr Matambo also noted that his ministry had prepared the draft 2019 budget strategy paper to give guidance to the preparation of the 2019 budget. He said it outlined macro-economic developments and outlook in both the global and domestic economy, fiscal developments as well as estimates of revenues and expenditure for 2019/20.

He noted that global developments would continue to impact on the local economy through various channels such as export earnings, cost of living and exchange rate mechanisms.

He regretted that while global economic growth prospects signalled a recovery for 2018 and 2019, there was still uncertainty as a result of the ongoing trade disputes between China and the US.

Minister Matambo said despite improvements in the domestic economy, a budget deficit was anticipated in 2019/20, noting that the deficit was reflective of lower than anticipated revenues against rising expenditures.

“The main reason why we are experiencing persistent budget deficits is that our revenue base is narrow, as we continue to rely heavily on minerals and SACU revenues which are by nature very volatile. On the other hand, government strives to respond to the nation’s needs of increasing economic activity to create employment opportunities, eradicate poverty and distribute available income equitably,” he said.

Minister Matambo further said given the limited choices of raising revenue, there was need to spend available resources cautiously and on prioritised programmes and projects..ENDS