Diamond savings fund deferred to 2017

Nyamadzabo
Nyamadzabo

A proposal to put 40 percent of minerals revenues every year into a diamond fund to buffer savings for future generations has been deferred to 2017 due to delays in preparations of the new National Development Plan (NDP 11) macroeconomic outline.

The proposal contained in the 2015-2016 Budget Strategy Paper (BSP) released last September as part of a raft of changes to the fiscal rule, was initially earmarked for implementation in the coming financial year. But the proposal was conspicuously absent in the budget speech read by Finance Minister, Kenneth Matambo this week.

The secretary for Financial and Economic Policy, Taufila Nyamadzabo has told BusinessWeek that when first mooted, the proposal was meant to run concurrently with the next budget as well as the NDP11. “At the time the proposal was made the two processes were meant to run together but the delay in preparations of NDP11 meant that we had to defer the plan.  This was a proposal that needed political approval and on advise from the Botswana Economic Advisory Council (BEAC), we had to defer,” he said.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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