President addresses HLCC on Strike

| Friday May 20, 2011 00:00

The biannual meetings of the HLCC brings together senior representatives of government, the private sector and additional key stakeholders, to discuss ways of ensuring that Botswana becomes a more productive and prosperous nation. The work of the HLCC is supported by regular meetings of economic sector sub-committees within each ministry.     

Besides addressing industry specific issues, today's meeting provided an opportunity for Khama to not only address the HLCC but also the nation, through those public and private press in attendance, on the ongoing strike action by a segment of public sector employees.

In his remarks President reminded the gathering that government spending remains in deficit, with a projected revenue shortfall of P7 billion in the current financial year. He further noted that public sector wages already cost Government P12 billion annually, considerably more than the P10 billion allocated for development this year. A 16 percent wage increase would thus add nearly P2 billion more to the budget deficit. The President cited continued volatility in the economy, due to internal and external developments, such as rising fuel prices and the earthquake in Japan, to explain why government had made a conditional offer of a 5 percent increase, which would be implemented if government stayed within its budget projections. He also confirmed that government had also offered an unconditional 3% increase. 

Khama noted that unlike many other countries burdened with budget deficits Botswana had not cut public sector salaries or jobs. He expressed regret that this fact was not appreciated by those on strike.

The President also reminded the meeting that government was committed to spending large sums of money on critical infrastructure projects such as new power stations to ensure the country's economic future, while at the same time assisting Batswana through various social welfare and empowerment programmes such as Ipelegeng, ISPAAD and Poverty Eradication  Summing up the challenge the President promised that he would not take any decision that would drive the country deeper in debt, noting that one cannot give what one does not have.