11 Aug 2019

Botswana continues to value the primacy of prudent economic management and sound budgeting.

Minister of Finance and Economic Development, Mr Kenneth Matambo told Parliament that astute planning and judicious resource management have been the hallmarks of Botswana’s public finances over the years and continue to be so.

He further noted that fiscal prudence and discipline of the last 50 years was not under threat because government’s planning and budgeting system has been improving overtime.

“Thus before any salary adjustment is effected, or any major spending decisions are made, proper analysis and consultations take place to ensure that such decisions are adequately informed,” he said. He added that basic tenets of government’s economic and fiscal management was the commitment to long-term sustainability of public finances.

He said before the recent salary increase was carried out, it was determined that it would be within government’s affordability limit. Mr Matambo said in 2019/2020 approximately 26.95 per cent of the overall government budget had gone to salaries.

He confirmed that the annual pula increase in 2019/2020 compared to the pre-salary increase was an additional amount of P1.96 billion. Tati West MP, Mr Biggie Butale had wanted to know if the fiscal prudence and discipline of the last 50 years was under threat due to the recent salary increases along with ‘threatened’ increases being mooted.

He also asked what proportion of the budget went to salaries and the annual increase compared to pre-salary increase. ENDS