Councils urged to develop revenue-generation methods
Tsaone Basimanebotlhe | Wednesday January 22, 2025 12:32
Speaking at a Budget Pitso which was held on Friday in Tlokweng, he highlighted the growing pressure to deliver quality services amidst declining revenues. In this context, fiscal prudence is essential. Motshegwa emphasised the importance of fiscal discipline stating, 'It is crucial for everyone. We must continue to explore and implement cost-saving measures, spending wisely in 2025-2026.' He also discussed the role of Local Economic Development (LED) initiatives, which aim to create sustainable jobs and improve livelihoods. With that regard, he said the initiatives help communities tap into economic opportunities linked to their natural resources. Additionally, Motshegwa pointed out that supporting Small, Medium, and Micro Enterprises (SMMEs) can further create jobs and enhance skills, particularly for women and youth.
He, however, said the new Botswana dream is one where they, as a nation, rise to meet the challenges of the time with innovation, integrity, and compassion. “It’s a vision where the spirit of our people leads us forward, guided by the principles of equality, opportunity, and prosperity for everyone,” he said. Moreover, Motshegwa said the pitso was evidence of government’s efforts towards consultation, a key principle of the development planning process. The minister said it encourages local authorities to recognise their significance in shaping the future of the country by actively participating in discussions and providing input. He said the platforms such as this forum, along with many other forums such as online channels, offer an excellent opportunity for everyone to voice their opinions, share their insights, and contribute meaningfully to decisions that impact to all. With that, the minister said this inclusive approach strengthens democracy and ensures that the National budget reflects the needs and aspirations of every citizen. He said the ministry is committed to implementing the National Decentralisation Policy for Botswana. “Upon Cabinet approval of the Decentralisation Policy, by March 2025, we envisage to start implementing the recently developed fiscal decentralisation strategy and this is expected to unlock economic opportunities for the local authorities,” he revealed.
Motshegwa said local authorities are mandated to raise their own revenue through the collection of property rates. He also said this has been extended to some rural District Councils, such as Mogoditshane, Palapye, and Ramotswa now declared ratable areas, whilst Gaborone and Francistown cities are working on new valuation rolls. He said once valuation rolls are completed, these councils will have new sources of revenue, which will result in less reliance on the Revenue Support Grant (RSG) from Central Government to develop communities. He also stressed that local authorities are encouraged to explore other income streams as overreliance on property tax cannot sustain the ever increasing needs by the communities they serve. In addition, he said Public Private Partnerships will also be critical in driving the development agenda of the country as government alone cannot succeed.