Budget cuts planned to push down deficit
Friday, January 08, 2021
In October, the draft Budget Strategy Paper, an annual budget blueprint, had forecast the 2021/22 deficit at P12.6 billion or 5.9% of GDP, above the prescribed fiscal limit of four percent. Each deficit requires additional funding by government but Covid-19 expenditure in the current financial year has left its reserves at the Bank of Botswana at historic lows.
A budget memo that circulated earlier this month indicates that the official deficit will be pushed down from the 5.9% of GDP estimate to below four percent by slashing spending and raising revenues through, among others, increasing Value Added Tax (VAT) and Withholding Tax (WHT) as well as introducing a new sugar tax.
The Ministry of Agriculture, local producers, retailers, and industry associations must work together to overcome the obstacles hindering vegetable production and distribution.This collaborative approach is essential to improve the availability, quality, and affordability of vegetables in the market.Firstly, the Ministry of Agriculture should provide support and guidance to local farmers to enhance their productivity and efficiency. This could...