The 2019/20 financial year is expected to commence on a P5.11 billion pula budget deficit, this information emerged at the Annual Budget Pitso hosted by the Ministry of Finance and Economic Development in Gaborone this week.
The forecasted budget deficit follows another one signalled by the treasury for the current financial year ending April 2019. The 2018/19 financial year commenced spending on a negative 4.5 billion pula behind proposed expenditures. The budget Pitso is an annual consultative meeting convened by the Ministry of Finance, to engage all relevant stakeholders across government and private sector on public finance matters as well as chat prospected trends for the subsequent year as far as revenue channels and prioritized government spending is concerned.
When deliberating on the Budget strategic paper finance ministry economic experts explained that the deficit mirrors total projected revenue estimation of P61.28 billion against proposed expenditure stretch of 66.40 billion. Mineral revenue is projected to contribute the largest share of revenue at P21.09 billion accounting for 34.4 per cent, followed by customs and exercise at P14.97 billion a 24.4 per cent stake. Non-mineral income tax is the third largest revenue contributor.
It was noted that to contain the deficit and ensure government continues financing key and vital expenditures the treasury will explore borrowing opportunities from available domestic and external resources base globally. Domestic borrowing would entail issuance of government debt securities such as treasury bills and long term government bonds.
When officially opening the Pitso on Tuesday, Minister of Finance & Economic Development Kenneth Matambo told attendants, amongst others high ranking government officials, captains of industries and private sector heads that the main intention of the Budget Pitso was to create a platform where concerned parties can appreciate the national budgeting process. Matambo explained that the Pitso promotes transparency, efficiency, effectiveness and accountability in the use and allocation of available national resources.
He noted that for the past eight years the finance ministry has prepared and presented strategic budget paper for stakeholder engagement. He explained that the paper contains macro-economic developments in both global and domestic economy, fiscal outlook for domestic economy, estimates and budget priorities for the next financial year.
Matambo noted that this year’s strategic paper as the first since ascendance of President Mokgweetsi Masisi to the helm of government enclave reflects 2019/20 financial year national strategic goals premised on key element of President Masisi ’s road map as outlined in various platforms since becoming President of Botswana in April this year. Highlighting on macroeconomic stance Matambo observed that trade related uncertainties between key global economies in China and Unite States spills over to developing economies like Botswana.
“This uncertainties in the global market result in negative propounded externalities to our domestic economic corridors particularly in the mining sector , due to this uncertainties in the global economy growth in our domestic macro economy remains vulnerable and ambivalent” he said. The finance minister shared that however in this current 2018/19 financial year positive economic growth is expected especially in the non-mining sectors.
“This underscores the integral need for the private sectors in developing our economic means and revenue channels outside the traditional anchor which for years has been mineral revenue,” he said. He noted that the Domestic economy has been doing well owing to contained inflation, adding that Bank of Botswana has continued to maintain the bank rate at within its objective range with the aim of promoting the financial services sector and related sub sectors.
“Low inflation is supportive of our economic growth objective, which envisages more goods and services being produced by the private sector, and as a result increasing employment opportunities,” he said
Matambo said in the coming year government will deliberately channel more resource into infrastructure development as a key enabler of business and investment with the cardinal intension to diversify the economy form one commodity dependence.
“Persistent budget deficit are not ideal , in pursuit of fiscal sustainability government is committed to controlling expenditure in the medium term , we have to achieve more with limited resources , we will continue coming up with deliberate ways of raising domestic revenues” he said.
Further deliberating on national expenditures and strategic thrust for the 2019/20 finance ministry officials underscored that government will be centred around the broad national priorities of developing diversified sources of economic growth, human capital development, social development, sustainable use of natural resources, good governance and strengthening of national security as well as monitoring and evaluation
Ministry of Finance said government would streamline policies and regulations to improve on the business climate for private sector development within the country by continuing to invest in infrastructural development, education and training, especially technical and vocational education, to achieve sustained economic growth and employment creation. Furthermore, government would continue to implement social welfare programmes as part of efforts to address poverty among the most vulnerable groups of the society.
Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.
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As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
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Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.
The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.
Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.
“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.
He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.
Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.
“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.
He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.
He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc
“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran
Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.
“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.
Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.
“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.
He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.
“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams
He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .
Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.
“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.