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both the global and domestic economy.
Botswana’s Finance Minister Kenneth Matambo on Monday said government projects have a surplus of US$96,2 million, about 0,6 percent of the gross domestic product for the 2013/2014 financial year.
Matambo said austerity measures will be maintained due to uncertainties that continue to dog the international economy.
“This uncertainty impacts negatively on our projections for the domestic economy and government’s revenues in particular,” he said.
“We must remain ready to respond should another shock occur, even as we continue to rebuild government’s reserves and reduce our total debt level which currently stands at 28,737 billion pula or approximately 23,5 percent of the 2012/13 GDP,” he added.
Botswana wants to return to sustained high growth and government forecast a 5,9 percent economic growth in 2013.
Matambo had projected a 4,4 percent in 2012.
“This requires that all our policies should be focused on productivity, competitiveness, and diversification, complemented by well-structured social safety nets.”
Botswana has managed to trim perennial fiscal deficits recorded by the country over the past three years due to the global economic meltdown of 2008 which dented the diamond rich economy.
The decrease is attributed to belt-tightening measures that have remained core of the country’s economic activities.
“Due to scarce financial resources, and the need to complete on-going projects, Government will only be able to include in the 2013/ 14 budget, a few more projects,” he added. Botswana’s revenues and grants for the financial year 2013/14 are forecast at 44,02 billion pula whilst total expenditure and net lending are forecast at 43,24 billion pula.
According to the minister, the 2012/2013 financial year recorded the first budget surplus since 2009.
The revised total revenue and grants stood at 41,91 billion pula while the revised total expenditure and net lending was 41,08 billion pula.
The preliminary 2012/13 revised budget shows a budget surplus of 835 million compared with the 1,15 billion pula in the original budget proposals. – Xinhua.
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