02 Feb 2020

Minister of Finance and Economic Development, Dr Thapelo Matsheka will today deliver the 2020/2021 Budget Speech.

BOPA Business reporter, Tebagano Ntshole goes down the memory lane, looking at the 2019/2020 financial year.

Last year, the then finance minister, Mr Kenneth Matambo presented an expansionary budget, which however, had an estimated deficit of P7.34 billion, but ballooned after salary increments of public officers, members of the disciplinary forces as well as Members of Parliament and councilors.

Mr Matambo presented a total budget of P60.2 billion against an expenditure of P67.54 billion. 

From the minister’s words, the country’s economy remained vulnerable due to the high volatility of mineral and customs and excise revenues.

Mineral revenue accounted for P21.09 billion or 35.62 per cent of total revenue followed by customs and excise, which includes income from Southern African Customs Union (SACU) at P14.02 billion.

Mr Matambo, while highlighting the challenges faced by the economy, nonetheless pronounced major development projects, particularly distribution of water and infrastructure development.

From the total development budget of P17.03 billion, the Ministry of Land Management, Water and Sanitation Services was allocated the largest budget at P3.37 billion or 19.78 per cent of the total budget.

Projects planned by the ministry were the North-South Carrier 2 from Palapye to Mmamashia and Gaborone for water distribution in the southern parts of the country.

Others were the Selebi Phikwe – Serule Water Transfer Scheme, Ghanzi Township Water Supply Expansion, the rehabilitation of Mambo Water Treatment Plant in Francistown and de-sludging of Lobatse Water Treatment Plant.

Last year, Parliament rejected the ministry’s motion proposing the reticulation of water from Masama Water Wells to the southern parts of the country and President Dr Mokgweetsi Masisi has vowed that the motion would be tabled again.

It is against this background that the ministry is expected to receive the lion’s share of the development budget as several areas in the south continue to experience shortage of water.

One such area is Molepolole, where several wards have dry pipes and the government has announced that the village will also be connected to the NSC pipeline via Gamononyane.

Gamononyane – Kanye pipeline has been completed feeding Thamaga, Moshupa and Kanye.

The Ministry of Transport and Communications was allocated P1.85 billion to cater for ongoing roads, bridges and ICT projects.

Ongoing projects were the Rakhuna – Mabule, Mmankgodi – Jwaneng, Gaborone – Boatle dualling, Mulambakwena – Tshesebe and Dibete – Mookane – Machaneng roads.

The proposed budget also included the designing and building of projects such as the construction of three intersections along the KT Motsete Drive in Gaborone.

A ground breaking ceremony for this project was held in October last year, where roundabouts at Kudumatse Drive, Wellie Seboni and Lobatse road will be replaced by new intersections aimed at easing traffic flow in the city.

The project has been awarded to a consortium of engineering and construction firms at a total cost of P447 million and is estimated to take 18 months.

Gaborone – Boatle dual carriageway has also been completed together with a new intersection at Boatle.

Designs for the Palapye - Martin’s Drift and Francistown - Maun - Mohembo roads were also to be done during this financial year after the roads were destroyed by torrential rains. ENDS