Govt cuts parastatal, council funding to reduce budget deficit

Making history: Serame became the first woman to deliver the country's Budget Speech this afternoon PIC PHATSIMO KAPENG
Making history: Serame became the first woman to deliver the country's Budget Speech this afternoon PIC PHATSIMO KAPENG

Government is proposing to reduce the civil service wage bill and cut support to parastatals and councils, as a way of narrowing the budget deficit which is estimated to reach P6.98 billion in the 2022-2023 financial year.

The country’s public finances have run at annual deficits since the 2016-2017 financial year, a situation worsened by the COVID-19 pandemic which forced the erosion of reserves housed in the Government Investment Account.

Delivering her maiden budget speech in Parliament this afternoon, Finance Minister, Peggy Serame said there was a pressing need for reforms to restore fiscal stability in the country and pursue the transformation and development goals laid out in Vision 2036.

Editor's Comment
Masisi should avoid diplomatic tensions

Mokgweetsi Masisi’s recent spats regarding the supposed involvement of Eswatini and South Africa in accommodating former president Ian Khama have sparked concerns about the potential ramifications on diplomatic relations. While transparency is valued, it must be accompanied by strategic communication to mitigate unintended consequences.President Masisi’s comments during a diplomatic heads meeting have drawn attention to the delicate balance...

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