06 Feb 2023

 Projected total revenues and grants for the 2023/24 financial year amount to P79.79bn against total expenditure and net lending of P87.38bn resulting in  a deficit of P7.59bn  or 3.06 per cent of GDP, says Finance Minister, Ms Peggy Serame.

Delivering the 2023 budget speech yesterday, she said the deficit was anticipated to be financed through a combination of financing options.

“The issuance of domestic government securities, in the form of bonds and treasury bills is anticipated to provide P3 billion. Net external financing, from official multilateral and bilateral lenders, is projected at P2.70 billion. As a result, a total of P2.20 billion is expected to be drawn from the Government Investment Account,” said Minister Serame.  

 Of the projected revenue of P79.79bn, Ms Serame said customs and excise receipts were the largest contributor at P24.93bn followed by mineral revenue estimated at P23.34bn. She said the third largest contributor was non-mineral income tax at an estimated amount of P14.77bn while Value Added Tax (VAT) contributed some P13.30bn. 

“The balance of P3.45 billion, was accounted for other sundry revenue items,” the minister revealed.  

Regarding the total expenditure and net lending of P87.38bn,  Ms Serame said P66.51bn was proposed for recurrent budget and P21.01bn for development.

The recurrent budget, she explained, was the principal vehicle for delivery of effective public services. “The 2023/2024 budget is also meant to facilitate the ongoing rationalisation of ministerial portfolio responsibilities in alignment with Reset and Reclaim Agenda,” said Minister Serame.

In addition, she said the proposed allocations were aimed at re-focusing existing policies, strategies and programmes following re-organisation of ministries and departments. 

Turning to the proposed ministerial recurrent expenditure, Minister Serame said it was estimated at P60.30bn, showing a growth of 13 per cent over the current approved budget.

The growth was necessitated by among others a five per cent adjustment of salaries and allowances of P3.77bn to government employees, salary arrears arising from a Court of Appeal judgement on multiple graded C-band positions at P1.41 bn and increase in the revenue support grant for councils and land boards at P407.46ml.

Ms Serame said at P15.04bn or 24.9 per cent of recurrent expenditure was allocated to the Ministry of Education and Skills Development consistent with national priorities.

It therefore demonstrated government’s commitment towards strengthening human capital and skills development required to transform Botswana into a knowledge-based economy, she said.

Minister Serame said the Ministry of Health was given the second largest share at P10.31bn to enable it to provide sustainable preventative, curative and rehabilitative health services to the nation.She said the provision also catered for personal emoluments, drugs, medical specialists’ fees, utilities and health care supplies.

The third largest share at P9.84m went to the Ministry of Defence and Security to enable it to address issues affecting Botswana’s sovereignty and territorial integrity.

In fourth position is the Ministry of Local Government and Rural Development with P8.22bn mainly for financing initiatives aimed at improving local governance and strengthening social and community-driven economic development.

Ms Serame also announced that Old Age Pension Allowance would increase by P100 and other social welfare allowances by P50 per month effective April.

She said the increases were in line with government’s priority of protecting  the most vulnerable groups of society and sustain livelihoods.  “Is it envisaged that all these efforts will, in the medium to long term, contribute to the Vision 2036 pillar of Human and Social Development,” said Minister Serame.ENDS