People's reaction to the Budget Speech

ISAAC PINIELO
Correspondent | Friday February 12, 2010 00:00

The contention was based mainly on the increase in Value Added Tax (VAT) from 10% to 12% with effect from April 1, 2010, and the fact that there will be no salary increase and no inflation adjustment for civil servants. Some people that  Businessweek talked to said by increasing VAT, the government is punishing rather than supporting them.

A self-employed carpenter, 39-year-old Othusang Majaule of Block Two said increasing VAT will only hurt people who do not earn much.

'I was very disappointed by the budget. I thought that the new government would come up with some change, but it appears the government's decision is final. Our economy is even deteriorating further,' he said.

Stephen Mogorosi (37), a civil servant working for the department of supplies said this year's budget speech is no different from the previous ones. 'Maybe it's because of the recession,' he noted adding, 'what bothers us most is that VAT is going to be increased whereas salaries are not raised.'

Mogorosi indicated that people will end up going to money lenders, something that the government is trying to discourage.

A street vendor, Barulaganye Wankie (52) said the government's decision is going to adversely affect people in her trade. She said the government never considers the vendors when preparing the national budget. 'They take us for granted despite the fact that we contribute to the economy,' she says.

As for Cindy Mlambo, 24 she expressed concern at the non-increment of salaries, but said she is content with the increment of VAT, noting that Botswana has the lowest in southern Africa has the lowest VAT. She said: 'I think it's good that VAT has been increased. People will learn how to save and prioritise on what they need not their wants.'She however said the government is just pushing people into doing what it wants. 'There was no consultation whatsoever,' she said.

Mlambo also said that the budget speech should be read in Setswana to make it more understandable to the lay citizens.

Seventy-one year old Palmer Modo of Jackalas No.1 is of the opinion that the increase in VAT would lead to retail prices and inflation going up. For Tebogo Basoli of Aerodrome, the increment of VAT should have led to the reduction of income tax. She said she was not happy with the fact that the government would not borrow money for salary increments.

The last time government increased salaries for employees was in April 2008 by 15 percent following a salaries review commission.