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February 2, 2021
Botswana’s Government presents 2021 Budget to Parliament
On 1 February 2021, Botswana’s Minister of Finance & Development (The Minister), the Honorable Dr. Thapelo Matsheka, presented the country’s 2021 Budget to Parliament.
This Alert summarizes the highlights of The Minister’s Budget Speech.
In his budget speech, The Minister acknowledged the extraordinary challenges brought about by the COVID-19 pandemic under which the budget was prepared. Among the key focus areas of the 2021/22 budget as highlighted by The Minister are two major areas:
According to the Minister, the domestic economy is forecasted to contract by 7.7% in 2020 and recover in 2021 at a growth rate of 8.8% against a contraction of the global growth output by 3.5% in 2019 and expansion of 5.5% in 2020.
The Minister highlighted that this positive economic growth outlook will be dependent on the overall direction of the global economy recovery and successful implementation of policies, programs and projects outlined in the National Development Plan, i.e., NDP11.
The Minister highlighted the need to broaden the domestic revenue base to complement the external sources of fiscal revenue. To achieve this goal of fiscal stability, The Minister made the following fiscal proposals:
For the complete budget speech go to www.finance.gov.bw.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Advisory Services (Pty) Ltd, Gaborone
Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
Ernst & Young LLP (United States), Pan African Tax Desk, New York