Multiple levies distort budget accountability

Finance Minister Kenneth Matambo
Finance Minister Kenneth Matambo

Botswana’s numerous ring-fenced off-budget ‘special funds and levies’ provide an opportunity for exploitation and should be brought into the budget. In that way, suggests prominent economist Dr Keith Jefferies, both the revenue raised and the expenditures made are subject to normal public finance accountability.

In a 2014 first quarter economic review report, Jefferies together with his Econsult colleagues Bogolo Kenewendo and Thabelo Nemaorani say that the levies are a form of a hidden tax and are generally frowned upon from a public finance perspective.

As at 2013, there were 37 special funds in existence, 19 of which are financed through levies that the government imposes on different activities.

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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