Billions flow as parastatals' spending freeze eases

The billions of pula more in grants that parastatals are set to receive in the next financial year fly in the face of the Finance Ministry’s stated austerity policy for public funds, especially those spent in the generally loss-making parastatal sector.

In his budget speech last Monday, finance minister, Kenneth Matambo pledged to crack down on losses in the parastatal sector, saying while these existed to support government’s development efforts, many were operating below par “a major concern to government”. Matambo slashed parastatal grants in 2016-17 across the board, contributing to a surplus of P1.12 billion.