05 Feb 2024

Minister of Finance, Ms Peggy Serame has proposed a budget expenditure of P102.28 billion against total revenues and grants amounting to P93.58 billion resulting in a deficit of P8.69 billion or 2.8 per cent of GDP.

Presenting the proposals in Parliament yesterday, Minister Serame said the P102.28 billion included P72.61 billion for the recurrent budget and P29.77 billion for  the development budget.

She said the increase in the proposed budget reflected increased fiscal spending to support public investment as part of the second Transitional National Development Plan (TNDP).

She said the recurrent budget proposed at P63.74 billion had been increased by 5.7 per cent over the current approved budget to cater for the five per cent salary adjustments for public officers, the adjustment of social welfare benefits and termination benefits for councillors. She added that others were provisions for vehicle replacement and the re-sponsorship of government funded tertiary education students.

The minister said the budget would also cover provisions for increases in the number of council wards, councillors and Members of Parliament as well as the maintenance of facilities among others.   

The Ministry of Education and Skills Development was allocated the biggest share of the recurrent budget at P15.54 billion, which is an increase of P500 million over the current year to cater for teachers’ salaries and allowances, operational costs for state owned enterprises and for the operational costs of the Institute of Health Sciences and brigades.

Ms Serame also proposed P10.65 billion for the Ministry of Defence and Security, which would be used to provide safety and protection through the implementation of relevant national policies and programmes required to achieve peace and tranquillity in the country.

She said the allocation would mainly cover operational costs for security agencies such as the Botswana Defence Force, Botswana Police Service as well as Botswana Prisons Service.

“The budget will also cater for costs for the newly established drug enforcement agency to combat the alarming rate of drug use, creation of 1 000 positions and associated costs at Botswana Police to enhance law enforcement, procurement of branded uniform for Botswana Prisons, uniform and protective clothing for prisoners and operations by the Botswana contingent under the Southern African Development Community mission in Mozambique,” she said.

Another notable allocation went to the Ministry of Local Government and Rural Development. It received P9.48 billion to cater for the upgrading of sub-districts to fully-fledged districts and a projected growth in council members and wards as well as allowances for Village Development Committee members.

Minister Serame said government remained committed to food security hence the Ministry of Agriculture had been allocated P1.56 billion to funding Temo Letlotlo and Thuo Letlotlo programmes.

As for development budget proposals, the minister said it had been increased by P8.76 billion or 41.7 per cent to P29.77 billion over the 2023/2024 budget as government aimed to propel the implementation of projects to unlock opportunities for sustainable jobs, improving the quality of life, reducing poverty, eliminating gross inequalities and ultimately achieving a high income status.

“To this end, a substantial amount of the budget has been allocated to infrastructure development given its role in promoting economic growth and facilitating participation of the private sector,” she said.
The Ministry of Lands and Water Affairs received the largest share of the development budget at P8.01 billion or 26.9 per cent to cover various projects amongst them the completion of the North South Carrier 2.2, Maun water and sanitation, Good Hope water supply scheme phase 2.2 as well as final payments for Moshupa sanitation, Kanye sanitation and Boteti South Central water supply scheme.

Ms Serame said the funds would also cater for land servicing projects in Metsimotlhabe, Ghanzi expansion, Maun Central Business District (Botshabelo Infill), Kasane (Plateau and Nnyungwe), Sir Seretse Khama International Airport Special Economic Zone, Mmopane Block 1, Chobe (Kachikau) and Letlhakane (Letsibogo).

Ministry of Transport and Public Works was allocated the second largest share of the development budget amounting to P3.95 billion or 13.3 per cent.

The  budget would cover ongoing road infrastructure projects such as traffic signal modernisation and centralised traffic control for Greater Gaborone, Botswana integrated transport project, Makalamabedi - Motopi, Mmandunyane - Shashemooke - Borolong - Chadibe - Mathangwane and Gaborone - Boatle dualling roads.

Minister Serame also said due to the current fiscal policy priority to allow accumulation of government cash balances, drawing on the government investment account would be moderated as part of financing the budget.

“Consequently, government will have to mobilise additional resources including using part of the fiscal savings, special funds proceeds and domestic borrowing through the issuance of new instruments such as inflation linked bonds and green bonds, among others,” she said on the budget deficit. Ends