Africa-Press – Botswana. Minister of Finance says the 2025/26 national budget proposals’ total expenditure of P97.61 billion was against the total revenues and grants of P75.49 billion resulting with a budget deficit of P22.12 billion or 7. 56 per cent of the GDP.
Presenting the country’s national budget proposals for the 2025/26 financial year in Gaborone yesterday, Mr Gaolathe however said the deficit was expected to be financed by different sources including domestic and external borrowing.
“This financing strategy will be executed without compromising the objective of growing the domestic capital market and debt sustainability as the projections indicate that total debt to GDP will remain within the statutory limit of 40 per cent of GDP,” he said.
Mr Gaolathe, who is also Vice President, further said of the national budget proposals amounting to P97.61 billion, P72.61 was earmarked for recurrent budget while P23.75 billion was for development budget.
He said the proposed P65.95 billion ministerial recurrent expenditure had been increased by P2.21 billion or 3.5 per cent compared to the current year’s approved budget and the largest had been allocated to the Ministry for State President, with P12.55 billion for coordination of government business as well as to safeguard and promote good governance.
The bulk will cover Botswana Police Service including the absorption of Special Constables into the police, Botswana Defence Force (BDF) and the operational costs of the Directorate of Intelligence and Security (DIS).
Ministry of Child Welfare and Education has been allocated P11.68 billion, the bulk which the minister said covered teachers’ salaries and allowances, development of child welfare policies and programmes, including the provision for sanitary pads for students. This he said also covered payment of service charges in schools, staff and operational costs under the Botswana Examinations Council and Botswana Teaching Professionals Council.
Mr Gaolathe proposed P11.27 billion for the Ministry of Local Government and Traditional Affairs geared toward improving efficiency in service delivery, local governance and social development as well as to promote culture and traditional activities.
The largest budgetary provision for the ministry goes to Revenue Support Grants (RSG) to District and Urban Councils, which accounts for P5.24 billion or 46.5 percent of the ministry’s proposed Recurrent Budget. A provision of P492 million is proposed to improve delivery of primary health care services at the local authorities.
“The proposed budget will also provide for the increase in the Old Age Pension Allowance from P830 monthly per beneficiary to P1 400, procurement of furniture and equipment for Tribal Administration as well as maintenance of customary courts and promotion of culture,” he said.
Ministry of Health takes the fourth largest share amounting to P8.98 billion, which is a decline by P480 million or 7.98 percent of the 2024/2025 approved budget due to the transfer of primary health care to the Ministry of Local Government and Traditional Affairs.
The minister said the budget allocation provided for Public Officers’ Medical Aid Scheme, procurement for laboratory supplies and equipment, medical and surgical equipment, vaccines, and drugs including ARVs and fees for medical specialists.
The newly established Ministry of Higher Education was allocated P4.66 billion; the bulk of it will be used to cover operational costs of the SOEs under this Ministry.
Other cost drivers are payment of allowances to tertiary education students and their medical examination and operational costs for the Institute of Health Sciences and brigades.
Other ministries have been allocated as follows; Ministry of Finance-P3.06 billion, Ministry of Lands and Agriculture P2.44 billion and P1.94 billion has been proposed to the Ministry of Transport and Infrastructure.
The Ministry of Trade and Entrepreneurship has been allocated P1.17 billion while P1.02 billion has been budgeted for the Ministry of Justice and Correctional Services, with the remaining P7.18 billion to be shared by other ministries and extra-ministerial departments.
As for the development budget, Ministry of Transport and Infrastructure has been allocated the largest share of the budget amounting to P4.31 billion or 18.1 percent for 2025/26 financial year to fund the construction of road networks to facilitate smooth transportation of goods and services, enhance market access, boost trade and attract investments.
Ministry of Local Government and Traditional Affairs has been allotted P3.48 billion to support vulnerable populations and promote social cohesion as well as strengthen culture and heritage.
Ministry for State President is allocated the third largest share of the proposed budget at P3.33 billion to be used to strengthen security organs and acquisition of equipment for protection of the territorial integrity of the country, combat crime and provide safe custodial care and correction to offenders through effective rehabilitation and reintegration programmes.
Minister Gaolathe said the budget would also facilitate the creative industry and contribute to employment creation, especially for the youth.
The Ministry of Lands and Agriculture will receive P2.88 billion to transform and modernise the agricultural sector.
The budget is intended for projects and programmes enhancing agricultural productivity, food security, as well as development of sustainable farming practices that ensured long-term prosperity for all Batswana,” he said.
A further P2.84 billion has been proposed to the Ministry of Water Affairs and Human Settlement to provide quality water, sanitation services and infrastructure across entirety of Botswana.
“A budget allocation amounting to P194 million will cater for social housing projects namely; Bonno Housing Scheme, Integrated Poverty Alleviation and Housing Scheme (Revamping), Public Officers Housing Scheme (for officers on D4 Salary Scale and below) and District Housing,” the minister said.
The proposed development budget for the Ministry of Minerals and Energy is P2.66 billion out of which P1.2 billion will be allocated to Botswana Power Corporation to cover power imports and facilitate loan repayments and well as cover electricity projects across the country.
Mr Gaolathe said remaining ministries and departments would share the balance of the proposed development budget of P4.25 billion to cater for major projects including construction and refurbishment of education, health and other government facilities countrywide.
This include Kasane-Kazungula redevelopment project and implementation of the National Tourism Strategy and Master Plan; Innovation, Research and Development; roofing of Francistown stadium and National Retail Payment Switch.
he minister also proposed a total statutory expenditure estimated at P22.70 billion to cater for normal public debt servicing obligations, government’s pension contribution for civil servants to the Botswana Public Officers’ Pension Fund amounting to P4.67 billion, which was an increase of P1.06 billion from the financial year 2024/2025.
For More News And Analysis About Botswana Follow Africa-Press
