Budget blows a long delayed 'shock' - Matsheka

The budget speech jarred many Batswana with an increase in Value Added Tax, Withholding Tax, the introduction of a sugar tax, an increase in the fuel levy, reviews of subsidies as well as plans to merge and liquidate some parastatals while reducing the civil service wage bill.

On Monday, Matsheka said the interventions were critical to restoring fiscal stability, given the record P21 billion deficit due in the 2020-2021 financial year and the forecast P6 billion shortfall for the upcoming 2021-2022 financial year. Government’s reserves in the Government Investment Account are running dry at P5.6 billion and forecast revenues for 2021-2022 are highly precarious, being dependent largely on a recovery in diamond mining.