Budget 2020/21 highlights : For the Engineering sector
This Government is committed to transforming the economy through, refocusing existing policies, strategies and programmes….in order to create an inclusive economy with greater citizen participation.
- The first priority is Promotion of export-led growth.
- The second is: Ensuring more efficient government spending and financing.
- The third is Building human capital.
- The fourth pillar is the Provision of appropriate infrastructure
Inflation was within the Bank of Botswana medium-term objective range of 3 – 6 percent. The outlook for domestic inflation is stable.
What the Government is undertaking :
Government will be refocusing attention to the agriculture and manufacturing sectors. The transformation programme requires a review of the country’s entire ecosystem for promoting exports, including regulatory environment, fiscal incentives, and provision of basic infrastructure.
A subcommittee of Cabinet chaired by the Finance Minister will undertake a comprehensive review of the parastatals’ landscape so that the mandates of these organisations are repositioned to support the transformation journey.
- The Finance Ministry will revisit the process of delivering public infrastructure through the Public Private Partnership (PPP) model
- Government has engaged the United Nations Conference on Trade and Development (UNCTAD) to develop the National E-Commerce Strategy, which will be in place by June 2020.
- Government is reviewing the PPADB (Public Procurement and Asset Disposal) Act.
- Government has initiated the review of the EIA (Environmental Impact Assessment) Act to enhance project implementation
- Government is also developing a Decentralisation Policy (to involve private sector)
- A value-for-money audit of expenditure on the education and health sectors.
- Government is also developing an Internship and Apprenticeship Framework
- Draft National Employment Policy (NEP) is in process
- Government is providing funding for constructing silos in Pandamatenga to be utilized by commercial farmers operating within the agricultural Special Economic zone
- Government is formulating a law on citizen economic empowerment to support the existing Citizen Economic Empowerment (CEE) policy.
- Forbes under 30 conference is coming to Botswana this April.
- The Trade Act and the Industrial Development Act will allow the issuance of licenses and registration certificates over the counter.
- In July 2019, Cabinet approved a comprehensive and internationally competitive incentive package, which the Special Economic Zone Authority (SEZA) will use to attract Foreign Direct Investment. These incentives include, among others, 5 percent corporate tax for the first ten (10) years and 10 percent thereafter; provision of fully serviced land; fast tracking of land allocation; providing single window and streamlined investor facilitation processes; waiver on transfer duty on land and property; and property tax exemption for the first five (5) years of operation.
Budget Allocation to Ministries:
Water allocated P1.372 billion; Transport allocated P1.3 billion; Agriculture allocated P862 million; ICT allocated P823 million; Land Servicing allocated P541.5 million; and Energy allocated P521 million.
Five Ministries, viz: Basic Education (P 9.01 billion), Defence Justice and Security (P 8.56 billion), Health and Wellness (P 7.73 billion), Local Government and Rural Development (P7.15 billion) and Tertiary Education Research Science and Technology (P 4.89 billion), account for 60.2 percent of the total Ministerial recurrent budget.
Other Ministries with substantial budget allocation are Ministry of Transport and Communications (P1.93 billion); Ministry of Presidential Affairs, Governance and Public Administration (P1.65 billion); Ministry of Agricultural Development and Food Security (P1.39 billion); Ministry of Investment, Trade and Industry (P1.07 billion); Ministry of Land Management, Water and Sanitation Services (P1.04 billion) and Ministry of Finance and Economic Development (P1.00 billion). The remaining recommended Ministerial Recurrent budget of P5.95 billion is shared among other Ministries including Extra-Ministerial Departments.
The proposed Development Budget for 2020/2021 Financial Year is P12.03 billion. The proposed Development Budget takes into account the capacity constraints in the economy .As a result, over 80 percent of the proposed development budget will mainly be for continued implementation of ongoing projects, such as in the Water, Energy, Roads and ICT sectors as the key economic drivers, which support the transformation agenda.
– The Economy and Employment TWG (Thematic Working Group) gets the largest share of the Development Budget…….ceiling at P6.93 billion.
–The Social Upliftment TWG’s overall goal is to achieve a dignified life for all citizens……The proposed budget for this TWG is P2.53 billion.
-The Governance, Peace and Security TWG gets P2.40 billion.
–The Sustainable Environment TWG is allocated P164.57 million.
Area of key interest are the construction projects underway around the country
- North-South Carrier 2 from Palapye – Mmamashia – Gaborone, which is meant to provide water to the southern part of Botswana; Kanye NSC Connection, Moshupa sanitation project, Land servicing at Mochudi, Selibe Phikwe, Mabutsane, Gantsi and Moshupa as well as the Botswana Emergency Water Security and Efficiency project partly funded through the World Bank.
- Construction of police stations and staff houses and the Department of Prisons and Rehabilitation Services for provision of prison infrastructure, equipment and storage facilities.
- Major roads and bridge projects, including Mohembo bridge; construction of three intersections along the KT Motsete Drive; Mogoditshane–Gabane-Mmankgodi road; Gaborone–Boatle dualling; Mulambakwena-Tshesebe; Dibete-Mookane-Machaneng; Mmandunyane-Shashe Mooke-Mathagwane; Makalamabedi-Matopi bitumen roads, as well as Traffic Control Modernisation and Centralised Traffic Control for the Greater Gaborone Area. Government Data Network upgrading, National Backbone networks, Government Data Centre and Local Access Network.
- Primary School Backlog Eradication Programme; community development projects, internal roads and tribal administration infrastructure development.
- North–West Transmission Grid Connection, Rural Electrification, Morupule B Remedial Works and Transmission Backbone for Mochudi, Government Enclave and Gaborone Central.
- ISPAAD, LIMID, and refurbishment of the Botswana University of Agriculture and Natural Resources. As indicated earlier, Government will reorient all programmes, including agricultural programmes, to improve productivity in their delivery and impact on the beneficiaries.
- staff houses and maintenance of primary schools; Poverty Eradication Programme; construction and upgrading of health facilities such as Tutume, Moshupa, Shakawe, and Letlhakeng Hospitals; housing schemes, such as the Self Help Housing Agency (SHHA), poverty alleviation scheme and destitute housing for the low income groups. The budget also caters for refurbishment of brigade