Public servants’ salary hike, housing allowances add to rising recurrent budget

Goitsemodimo Kaelo | Monday February 16, 2026 09:54

The government’s proposed ministerial recurrent budget for the 2026/2027 financial year has risen to P67.78 billion, largely driven by public servants’ salary increases, housing, upkeep allowances, and expanded education sponsorship commitments. . PIC MORERI SEJAKGOMO

The proposed figure makes an increase of P1.82 billion, or 2.8 percent, over the approved P65.95 billion for the 2025/2026 financial year. Delivering the 2026/2027 Budget Speech on Monday, Minister of Finance, Ndaba Gaolathe, explained that a significant portion of the increase stems from new and expanded personnel-related expenditures. He said the government has set aside P802.82 million for tuition fees covering new and continuing students, as well as re-sponsorships. In addition, P560.62 million has been earmarked for salary incremental creep, while P542 million will fund housing and upkeep allowances for public service employees at salary scales A3 to D1.

The housing provision follows the Collective Labour Agreement between the government and trade unions last year.

Further, Gaolathe said the allocations also include P337.17 million for termination allowances and P154.89 million for staff costs for temporary teachers; the establishment of key national initiatives, namely for the NHI at P77.81 million and P35.75 million for the Mineral Exploration Company. 'Furthermore, P57.47 million has been allocated to address funding shortfalls in the Department of Correctional Services, while P15.85 million has been provided for the absorption of Special Constables,' Gaolathe said. Meanwhile, the largest share of the proposed ministerial recurrent budget is allocated to the Ministry for the State President, Defence and Security. This represents P13.05 billion, an increase of P502.77 million or 4.01 percent over this year’s approved budget. 'The allocation largely covers operational requirements of the Botswana Defence Force (BDF) and the Botswana Police Service (BPS), reflecting the government’s continued commitment to safeguarding national security. The proposed budget will also finance the absorption of Special Constables into the Regular Constable Cadre as well as the procurement of their uniforms,' he said. In addition, he said, the provisions have been made for Termination Allowances, Service Charges and Static Plant under the Directorate on Corruption and Economic Crime (DCEC). Gaolathe said the National Aids and Health Promotion Agency (NAHPA) has been transferred back to the Ministry of Health following the rescission of the earlier decision to transfer it to the Ministry for State President, Defence and Security. The second largest share of the proposed Ministerial Recurrent Budget is allocated to the Ministry of Local Government and Traditional Affairs, amounting to P12.99 billion.

This represents an increase of P1.71 billion or 15.2 percent, compared to the allocation for the previous financial year budget. Gaolathe said that this substantial allocation underscores the government’s commitment to strengthening social development and enhancing service delivery within local government structures and traditional affairs. He highlighted that the allocation is intended to improve the Ministry’s operational capacity, ensuring effective functionality and sustained provisions of essential services to communities across the country. 'The significant growth is primarily attributable to the transfer of funding from the Ministry of Health to support the Primary Health Care function, which was reassigned to the Ministry of Local Government and Traditional Affairs as part of the 2024 rationalisation of Ministerial portfolios,' he said.

Additionally, Gaolathe said a substantial portion of the budget is also allocated to the social welfare programmes, which continue to experience significant growth. These include Destitute Allowances, Old Age Pension Scheme, Orphan Care Programme and the newly introduced Sanitary Ware Support Initiative for mothers and babies, scheduled for rollout in the budget year. 'To safeguard the integrity of these programmes and ensure that resources reach the most deserving beneficiaries, it is recommended that the Ministry should conduct a proxy means testing within the Social Protection Framework,' he added. Gaolathe, who is also the Vice President, said this will improve the identification of eligible recipients and minimise instances of double-dipping. He said the Revenue Support Grant (RSG) will likewise continue to receive increased subvention in response to rising demands. However, to mitigate escalating pressure on the RSG, Local Authorities are urged to expedite the review and valuation of properties in districts such as Gamalete and Palapye. Gaolathe said this initiative is expected to broaden the revenue base, strengthen local revenue mobilisation and reduce over-reliance on Government funding.