27 Mar 2022

Parliament has passed the 2022/2023 national budget estimated at P74.84 billion, with P58.51 billion allocated to the recurrent budget while the remaining amount will fund the development budget.

The 2022/2023 year marks another year of budget deficit, as the total budget of P74.84 billion stands against revenues and grants amounting to P67.87 billion. 

Minister of Finance and Economic Development, Ms Peggy Serame said the P6.98 billion deficit would be financed through a combination of bonds and treasury bills and external borrowing, while ensuring the debt level remained within the statutory limit of 40 per cent of the Gross Domestic Product (GDP). Ms Serame said there was the need for a budget switch, where more funds would be channelled towards development given the high level of spending on recurrent budget, which had been seen as unsustainable. 

That, she said would require reducing the wage bill, which accounted for three per cent of the GDP. She said that would be achieved by reducing the number of State Owned Enterprises through merging and privatisation. 

The 2022/2023 budget marks an end to the eleventh National Development Plan (NDP 11) which is a medium-term plan towards the implementation of the Vision 2036.

Ms Serame highlighted that the GDP growth in the first half of the plan period was reasonably robust, averaging 4.0 per cent a year in line with projections.

However, she said that was not sufficient to create enough employment opportunities for the growing labour force.

The second half of NDP11, she said, was dominated by the economic impact of COVID-19, adding that had a dramatic impact on GDP growth, despite a range of measures implemented by government through short term Economic Stabilisation Package in the first half of 2020 and Economic Recovery and Transformation Plan.

This financial year’s proposed development budget of over P16 billion saw an increase of P1.76 billion or 12 per cent over the 2021/2022 budget, with the largest share being allocated to the Ministry of Land Management, Water and Sanitation Services at P5.06 billion.

Water supply projects account for P4 billion or 79.4 per cent of the ministry’s budget allocation, with major water development and sanitation infrastructure projects including among others Maun Phase2’s construction of treatment plant and transmission pipeline, Maun phase 2 Waste Water Treatment plants and connection and satellite villages, Molepolole Water Supply and Sanitation Scheme, North South Carrier 2.2 Palapye-Mmamashia Water Pipeline and continuation of ongoing projects.

Other major development projects include the ongoing Moshupa sanitation, NSC 2.3, Kasane-Kazungula Water Networks, Chobe-Zambezi Water Transfer Scheme, connection of tswapong South villages to the NSC, the ongoing Water Treatment Plant in Kasane and the North East/Tutume Water Supply project. 

The second largest share of the development budget at P2 billion or 12 per cent has been allocated to Ministry of Local Government and Rural Development for the continued implementation of social protection programmes, procurement of tablets for primary schools, construction and maintenance of primary schools, primary schools facilities backlog eradication project, development of reception classes and village infrastructure projects including the Mmopane-Block 8 Road, Logolo Road and Tlokweng  and Mogoditshane internal roads.

Ministry of Transport and Communications and Ministry of Defence, Justice and Security are allocated the third and fourth largest shares of the budget at P1.8 billion and P1.6 billion respectively.

The total proposed allocation for ministerial recurrent expenditure stands at P53.3 billion which is an overall growth of P2.7 billionn or 5.3 per cent over the current year’s approved budget of P50.6 billion.

Ministry of Health and Wellness has been allocated the largest recurrent budget to promote and provide comprehensive health care services to the nation including key priority of saving Batswana from COVID-19 pandemic.

The ministry has been allocated the largest share of 18.7 per cent of the ministerial recurrent budget amounting to P10 billion, representing a significant growth of P2.11 billion over the current year’s approved budget.

Ms Serame said government’s continued response to the pandemic would entail procurement of more Personal Protective Equipment, oxygen equipment and vaccines including booster vaccines as well as logistics and ancillary supplies. 

The budget allocation would also cover medical aid cover to public service employees under the Botswana Public Officers Medical Aid Scheme. ends