Spend more to prop up economy - Ookeditse

Former Botswana Democratic Party ( BDP) strategist now in the opposition trenches, Lawrence Ookeditse has implored the finance minister to consider increasing spending despite difficulties expected in the 2021/ 22 fiscal year.

“It would help though, for government to consider enhancing expenditure even within the difficulties. We are a small economy dependent upon government. When government doesn’t spend the economy is in trouble,” said Ookeditse.

He acknowledges that the economy has experienced turmoil this year due to the ongoing COVID- 19, highlighting that the minister will walk on a tight rope for the 2021/ 2022 budget.

The minister of finance and development, Thapelo Matsheka is expected to deliver his budget speech but gloom is looming, as prospects are not looking bright for the nation.

“There will be belt tightening against suppressed revenues”, said Ookeditse, adding that the country is not yet out of the woods.

He however indicated that the shrinking government purse will have to be financed by workers, considering that the economy’s cash cow - diamonds - are also facing uncertainties and limited sales.

“At the same time we expect government will seek to squeeze a lot out of citizens from VAT,” Ookeditse said, emphasising that government should avoid freezing of expenditure on a good number of projects and instead focus on keeping salaries constant and even keeping recurrent expenditure at a bare minimum.

“Our development budget should largely be financed with strict emphasis on projects being awarded to companies and entities that will spend the bulk of their earnings in Botswana,” Ookeditse said.

Government has already signaled intentions to present a conservative budget as more negative impacts from the ongoing COVID- 19 continue to unravel.

This year’s budget is expected to record alarming deficit as the health requirements and other cost related to containing the spread of coronavirus are expected to hike.

Health authorities have already indicated that Botswana Institute for Technology Research and Innovation ( BITRI) has confirmed the presence of the COVID- 19’ s new variant 501Y. V2 first discovered in South Africa.