Balanced budget will send the right signal - BOCCIM

Chakalisa Dube | Friday January 31, 2014 17:41

 

BOCCIM wants the budget to also embrace a low and stable inflation as well as sustainable public debt in keeping with BOCCIM's own values of low taxation. In a statement released this week, BOCCIM noted that, 'A balanced budget - as opposed to surplus or deficit - sends a positive signal to both investors and savers that the government will not take in more than it needs from taxpayers to run its operations.'A balanced budget therefore leaves business owners with more money in their pockets to finance their operations and hire additional people in the process. 

'BOCCIM therefore expects minister Matambo to maintain the momentum on his medium term goal of balanced budgets.'In addition, BOCCIM expects the finance minister to ensure that budget in high expenditures sectors such as education and health generates value for the tax payer.'In this spirit therefore, BOCCIM hopes that priority will be given to functionality of premises instead of lavishness especially in public projects such as building of new schools. 

In the same vein of getting value for money, BOCCIM hopes that the budget will pay special attention to expenditure on poverty and welfare programmes to ensure prudent use of scarce resources,' reads the statement.BOCCIM is also optimistic that the involvement of the private sector in activities such as education, health and electricity supply, will top the agenda of the 2014/15 budget.Furthermore BOCCIM wants Matambo to use the occasion of the 2014/15 budget to underscore the need for global competitiveness.

This, says BOCCIM, will be through high productivity, good work ethic, world class business and investment climate and opening Botswana to the best and brightest talent from all corners of the world.Meanwhile as Matambo prepares to perform the country's annual ritual of presenting the annual budget, residents of the second city have high expectations.'We rely mostly on the government workers to purchase our products but over the years inflation has been uncontrollable and has hit them hard,' says street vendor Sipho Malunga.The 39-year-old mother of two added that, 'an increment in their salaries will help lessen inflation and improve their buying power. This would benefit us greatly.'Malunga commutes everyday by bus from the neighbouring Borolong village to Francistown's central business district to irk a living on the pavements.For 47-year old Keaitse Chifana who also operates his clothes vending business near Grand Lodge, he hopes the government would allocate more money to the education sector to improve its ailing status.'More money should also be availed to stimulate the economy and create jobs for graduates. Stories of graduates not getting jobs and opportunities are a regular feature in the local media and around the streets.

I hope that the highlight of the budget will be availing funds to address the above,' he says. A mother of three 36-year-old Goitsemodimo Motukwa who resides at Phase Six location and operates a fast food business also in the CBD, is optimistic that this time around there would be a noticeable increment in the salaries of civil servants.'It is undisputed that the civil servants make the bulk of many customers for many businesses around the world. If they get an increment it will increase their buying power, which will boost businesses in the country. The government has been side-lining them for years,' she says.

Motukwa adds that the informal sector is 'also making a loss as a result of inflation. We order our merchandise at high price, but we cannot significantly increase our prices because there is little to no buying power.' She would want the budget to also address the plight of the youth with regards to unemployment and lack of opportunities.   

The 2013/14 budget forecast was P43.24 billion although it is expected that Matambo will announce a 10% deficit as a result of additional funding of power supplies and drought relief programmes.The recurrent budget in the 2013/14 budget forecast amounted to P33.9 billion and development expenditure at P9.13 billion.