Last Updated
Thursday 18 December 2014, 14:58 pm.
Summary of the Botswana Financial Budget 2012

Balancing the top priorities amidst the uncertain future has been the focus of the 2012-2013 Budget presented by Kenneth Matambo on February 1, 2012. The priorities which are set to be achieved include service-delivery focus, maintenance of existing infrastructure, complete on-going projects, focus on high return new projects and balanced budget.
By Staff Writer Sat 20 Dec 2014, 08:26 am (GMT +2)
Mmegi Online :: Summary of the Botswana Financial Budget 2012








After three years of deficit budget, it is nice to note that the 2012-2013 budget shows a surplus and the revised 2011-2012 budget estimates a reduced deficit of P 3.76 billion. It could be argued that the balancing of budget comes through reduced spending and not through diversified revenue base; however, a surplus budget brings in a positive feel to the economy. 

Government is giving a clear signal that they want the private sector to step up and partner with Government on their pursuit towards improving efficiency, creating employment opportunities and foster private sector growth. Human Resource Development Council (HRDC) and National Economic Diversification Council (NEDC) have a lot of responsibilities in terms of providing bold and strategic direction towards the skills development and diversification vision of Botswana. The effectiveness of this partnership is going to be a key factor towards achieving a diversified economy and sustained growth.

The improved projected economic growth of sub-Saharan Africa from 5.2 percent in 2011 to 5.8 percent in 2012 could mean that our region could be centre of attraction for the international markets which are underperforming. Botswana projected growth rate of 4.4 percent still poses an opportunity for growth.  The future relocation of DTC to Botswana has already created a lot of excitement in the market, despite cautious outlook on the diamond sector. The upgrade of the sovereign rating by Moody reflects improved confidence in Botswana and this need to be cached on well.  Botswana ICT sector has been experiencing challenges and in particular the bandwidth restrictions have been a bottleneck for existing business and potential inbound opportunities. On this front, the investment of P50m towards improving the bandwidth is a welcome move and we look forward to a faster browsing experience at reduced costs.

 This will do a lot of good to business across all sectors. On the other side, infrastructural investments like power, water will enhance a lot of investor confidence.Talking about enhancing investor confidence, the importance given to Doing Business agenda by Gob is commendable.  The various components covered in the Doing Business review of World Bank including aspects like starting a business, obtaining permits, trading across borders etc.relate of every person in this society and we look forward to a marked improvement on these areas which will automatically address and improve the FDI.  Government intention to increase local borrowings is expected to bring in more opportunities locally and could benefit the local financiers and the capital markets.

There is not much talked about on the fiscal legislation, having said that, as the minister said, the recent tax reform changes in 2011-12 could bring in an improved compliance and create a positive fiscal impact.  The planned revisions and amendments to key legislations like CIU, VAT, Banking Laws and tax is a much needed and welcome move and it is important to focus and push on these revisions for the benefit of the stakeholders.In summary, the change in mind-set and focus on our priorities is expected to give a much-needed boost to the country and we look forward to continued prosperity.

*The author is partner, Advisory Services and president of the Botswana Institute of Chartered Accountants.



Exchange Rates
FOREIGN EXCHANGE: Friday, 19 Dec 2014
FOREIGN / PULA
PULA / FOREIGN
1 USD = Pula   9.4787
1 GBP = Pula   14.8368
1 EUR = Pula   11.6414
1 YEN = Pula   0.0794
1 ZAR = Pula   0.8211
1 Pula = USD   0.1055
1 Pula = GBP   0.0674
1 Pula = EUR   0.0859
1 Pula = YEN   12.6
1 Pula = ZAR   1.2179
Banner Image
Stock Exchange
STOCK EXCHANGE: Friday, 19 Dec 2014
DOMESTIC STOCKS
ABCH
714
BARCLAYS
343
BIHL
1151
CHOBE
427
CHOPPIES
406
CRESTA
89
ENGEN
950
FNBB
362
FSG
237
FURNMART
220
G4S
374
LETLOLE
215
LETSHEGO
266
NAP
217
OLYMPIA
20
PRIMETIME
260
RDCP
202
SECHABA
2810
SEFALANA
922
STANCHART
1258
TURNSTAR
208
WIL
310
IMARA
210
  • Previous
    Night at the Museum: Secret of the Tomb Poster
    Next
    Masa Centre
    ::: Friday 19 Dec - Tuesday 23 Dec :::
    Night at the Museum: Secret of the Tomb
    John Wick
    The Hobbit: The Battle of the Five Armies
    Love, Rosie
    Penguins of Madagascar
  • Previous
    John Wick Poster
    Next
    Riverwalk
    ::: Friday 19 Dec - Tuesday 23 Dec :::
    John Wick
    Night at the Museum: Secret of the Tomb
    The Hobbit: The Battle of the Five Armies
    Walking on Sunshine
    Penguins of Madagascar
  • Previous
    Night at the Museum: Secret of the Tomb Poster
    Next
    Gamecity
    ::: Friday 19 Dec - Tuesday 23 Dec :::
    Night at the Museum: Secret of the Tomb
    John Wick
    The Hobbit: The Battle of the Five Armies
    Penguins of Madagascar
    Love, Rosie
    The Hunger Games: Mockingjay - Part 1