14 Feb 2021

Minister of Finance and Economic Development, Dr Thapelo Matsheka on Thursday told Parliament that the budget speech he recently tabled before the National Assembly did not present changes to the eleventh National Development Plan (NDP 11) cost estimates without Parliamentary authority.

Responding to allegations submitted by Jwaneng-Mabutsane Member of Parliament, Mr Mephato Reatile during his recent debate of the budget, Dr Matsheka said his ministry and the government was committed to maintaining integrity and had not unilaterally altered the cost estimates.

He said Mr Reatile had alleged that this year’s budget increased the total estimated cost (TEC) of NDP 11 approved in the Mid-Term Review without the approval of Parliament.   But Dr Matsheka clarified that what had been presented was a proposed revision of the TEC which had to be approved by MPs.

Dr Matsheka said the initial NDP 11 TEC sanctioned by Parliament in November 2016, was revised during the Mid-Term Review of September 2020, but following the presentation of the 2021-22 financial year estimates, there had been an upward revision by P138 million.

“The difference between the NDP 11 Mid-Term Review figure and the one mentioned in the 2021/2022 Estimates of Expenditure is an increase in TEC of P138 million. This is part of the budget proposals contained in the 2021/2022 Estimates of Expenditure from the Consolidated and Development Funds and presented as part of the current Appropriation Bill,” Dr Matsheka said.

The P138 million variance had been presented to Parliament as a proposal that needed the endorsement of MPs, and arose owing to funds proposed to be utilized by different ministries.

These include approximately P67 million increase in the National AIDS and Health Promotion Agency (NAHPA) programme, offset by the transfer of the programme to the Ministry of Health and Wellness and P110 million for the 2021 Housing Population and Housing Census.

A further P24.1 million had been proposed to provide for the government’s contribution towards the library fund implemented by the Robert and Sarah Rothschild Foundation, and P21 million Ministry of Youth Empowerment, Sport and Culture Development infrastructure for the Francistown Stadium. “I wish to emphasise that the funds cited is not an approved Total Estimate Cost (TEC) as alleged by Hononourable Reatile, but it is a proposed TEC to be considered by this House. I also wish to indicate that during budgeting it often happens that additional priorities come to the fore and necessarily compete for resources with already existing commitments. It is at this stage that these are assessed and in instances where the budget allows, are included in the main budget proposals for consideration by Parliament,” Dr Matsheka said. Ends