Minister of Finance and Development Planning Kenneth Matambo delivered a budget presentation on Monday with the ministerial recurrent budget over half of the total revenues and grants. The 2016/17 revenues and grants are estimated at P48.40 billion, a decrease of P3.36 billion compared to the 2015/16 budget of P51.76 billion. In his speech, Matambo announced that the ministerial recurrent budget for the ensuing financial year will amount to P36.99 billion, an increase of 0.8 percent from the previous year.
As usual, the Ministry of Education and Skills Development is the largest beneficiary of the recurrent budget at P10.64 billion of the total. Second on the recurrent budget came Ministry of Health followed by the Ministry of Local Government and Development Planning while the Ministry of Justice, Defence and Security took the fourth largest share of the recurrent budget. Regarding the development budget, Matambo proposed a P14.82 billion for the financial year. The Ministry of Defence, Justice and Security took the largest share of the proposed development budget with P3.59 billion which will cater for the Botswana Defence Force (BDF) capabilities.
The Ministry of Minerals, Energy and Water Resources came second in the development budget with P3.43 billion which will address water and energy shortages. Projects that have been included in the development budget under the ministry are Morupule A power plant rehabilitation, North-West Electricity Transmission Grid and Rakola Sub station. On the overall balance, Matambo said with a total revenue and grants of P48.40 billion and proposed total expenditure and net lending of P54.44 billion, the net result is an estimated budget deficit P6.05 billion or 3.8 percent of the GDP. In line with the Medium Term Debt Management Strategy, Matambo said the deficit will be financed through a combination of drawing down on government savings, domestic borrowing and foreign borrowing.