02 Mar 2022

Parliament has on Tuesday approved the 2022/2023 budget estimates for the Ministry of Finance and Economic Development amounting to over P2.7 billion. 

The estimates proposed by Minister Peggy Serame comprised over P2.3bn recurrent expenditure and about P311 million development budget. 

Ms Serame said the budget estimates were an increase of 110 per cent from the 2021/2022 financial year. 

She said 84 per cent of the proposed recurrent expenditure would be allocated to the ministry headquarters. 

“The proposed allocation to headquarters also includes an amount of P214 550 000 as provision for subventions to parastatals that fall under the ministry,” she said. 

She added that P424 770  000 of the development budget would cater for ongoing and new development projects for border security, ICT, infrastructure and other projects. 

She said the ministry was estimating to collect the sum of P57 981 845 900 for the 2022/2023 financial year. 

Briefing Parliament about achievements of the ministry in the current financial year, Ms Serame said the ministry had continued to improve financial management systems, processes and laws. 

That, she said, was being done to facilitate a comprehensive and integrated reform of the public finance landscape in line with Transformation Agenda as well as the Reset Agenda. 

“The Public Finance Management (PFM) Reform Programme that has been under implementation since July 2010 has entered a second phase with formulation of the second PFM  Reform Agenda, which will cover the years from 2022 to 2027,” she added. 

She said some of the major achievements under the programme included development of a Budget Strategy Paper, successful implementation of a Medium Term Fiscal Framework for MTEF, development of a Medium Term Expenditure Framework, development of a Medium Term Led Strategy, establishment of a Government Audit Committee, among others. 

The minister said implementation of the second PFM road map would commence during the first half of the 2022/2023 financial year. 

She explained that the ministry would continue implementing the zero based budgeting system to continue improving efficiency and effectiveness of government spending. 

“This approach is consistent with government’s fiscal consolidation measures as it enables ministries, departments and agencies to further prioritise their spending plans by directing resources to areas of acute need,” she said. 

Again, she indicated that the ministry was also aiming to broaden the base from which government would collect revenue. 

She said efforts were underway to commence the new Public Procurement Act in April, which was introduced as part of the public sector reforms. 

Ms Serame further said the ministry had decided to expedite digitisation services in line with the Reset Agenda.  

Ms Serame added that the ministry had continued to make annual upgrades to the integrated online Government Accounting and Budgeting System (GABS) to improve on its efficiency in providing real time information for decision making. 

She said the ministry was also in the process of building offices in Gaborone for the Financial Intelligence Agency (FIA). 

“The design for the project has been completed and construction is expected to start in April with completion date of November 2023,” she said. 

The minister lamented maintenance of buildings, which she argued was a challenge in the ministry, both at headquarters and district offices. 

“In this regard, the ministry intends to undertake major refurbishment of headquarters buildings and PPADB offices in the next financial year,” she said. 

She said Botswana was finalising negotiations with Namibia for one stop border posts at Mamuno and Trans Kalahari with the aim to complete the agreement in the next financial year. 

She further said the country was at initial stages of negotiating agreements with South Africa for one stop border posts at Tlokweng and Kopfontein and with Zimbabwe for one stop border post at Ramokgwebana and Plumtree. 

Meanwhile, Minister Serame told Parliament that the overall level of revenue collection by the ministry in the 2021/2022 financial year was 95.8 per cent. ends