Matambo hints at austere 2011 budget

MBONGENI MGUNI
Staff Writer | Tuesday October 26, 2010 00:00

It is expected that 2011/12 expenditure will either mirror the current budget or come in lower as a result of priority being moved from new projects to the completion of ongoing work.

'In terms of the budget for next year - subject to discussions with different stakeholders - I have no doubt that having gone through a difficult time, we must put priority on finishing the development projects and programmes that we have started,' Kenneth Matambo told journalists on Friday.

'That has to be done and it has to be a priority. We have been reviewing our infrastructure and other works and I believe that having put it in place, we need to maintain it and have it serve its purpose. Maintenance will be important in the budget allocation.'

Ongoing projects under the current budget include dams, water supply, power station development, aviation infrastructure, roads, village development, construction of schools and defence projects.

Matambo's comments echo the recently released 2011/12 Budget Strategy Paper that guides the preparation of next year's budget. 'The development budget should, as a first priority, be allocated to completing ongoing projects,' the Paper reads.

'Where priorities have changed, it should be clearly indicated as to which other projects would be forfeited or suspended. The different sectors should identify optimisation opportunities for ongoing projects... New spending decisions will need to be financed through expenditure re-prioritisation.'

 The Finance Minister stressed that while the budget will reflect the goals outlined in National Development Plan 10, the prioritisation of these is a matter of discussion through this week's Budget Pitso and a briefing for legislators next month.

'We cannot do everything at the same time,' he said. 'That's why we need to prioritise. The NDP outlines the nation's broad objectives, but the budget must address specific priorities.

'At the pitso, we will advise stakeholders on government revenues, balance of payments, foreign reserves, government debt and other issues.

We have been criticised as a government that appears to be secretive about the budget. We have listened and we are responding positively.'

The task before Matambo and other technocrats for 2011/12 will be made slightly easier by the higher projections for government revenues this year.

The national coffers will benefit from higher mineral revenues, lower spending and an anticipated bond issuance programme due next March.

Government is thus expecting revenues to be higher than the anticipated P27.1 billion.