Budgetary Process in Botswana

The budgetary process thus refers to the set of rules and procedures that policymakers use to formulate, enact, and enforce these revenue and spending agreements.

In Botswana, the budget process is well-established and domestically driven. The budget cycle comprises four main stages, which begin each year in June and run through to February three years later (Figure 18). The budget preparation process operates on an interactive basis between MFED and spending ministries.

  1. Macroeconomic context
    The framework for development planning in Botswana is contained in the National Development Plans.
    Botswana’s Vision 2036 is the second national vision that aims to transform the country from an upper-middle-income to a high-income country. The vision
    aligns Botswana’s national agenda with the global agenda for sustainable development and the
    principles of Africa Agenda 2063. It has four pillars: (i)
    sustainable economic development; (ii) human social development; (iii) sustainable environment and (iv) governance, peace, and security (Figure 1).
    The current eleventh National Development Plan for 2017-2023 (NDP 11) is the first medium-term plan for the implementation of the country’s Vision
  2. NDP 11 provides projected economic growth rates over the six-year period, at the sectoral level, as
    well as fiscal projections – a kind of extended Medium-Term Fiscal Framework (MTFF). NDPs are
    prepared by the Ministry of Finance and Economic Development (MFED), based on inputs from all
    ministries. For NDP 11, a new consultative process was introduced with Thematic Working Groups
    (TWGs), one for each Vision Pillar, including representatives from government, civil society, and
    the private sector. NDPs are approved by Cabinet before being presented to Parliament for final (legal)
    The government’s financial assets are managed by the Pula Fund which is entrusted to the Bank of Botswana
    (BOB). The government invests directly in the Fund and its assets are accounted for in the Government
    Investment Account, which represents the government’s ownership of the Pula Fund. The major purpose of the Fund is to invest proceeds from non-renewable resources (minerals) for the benefit of future generations. The government cannot withdraw more
    than its share of the Pula Fund to finance the budget.
    The Pula Fund cannot be used in any quasi-fiscal/off-budget operation to finance investment or the purchase of goods and services outside the government budget framework. The legal
    specifications for such activities are detailed in the BOB’s Act (CAP 55:01).
    On average, Botswana has achieved annual real GDP growth of around 4.6 percent over the past two decades (Figure 2). Botswana’s economic growth over the long term can be broadly divided into two periods: a period of rapid, mineral-led growth in the first 25 years after independence in 1966 and much slower, more diversified growth over the past 25 years (Figure 2). During NDP 10 (2009-2016) the actual average rate of growth was around 3.9 percent per annum, which is substantially below the Vision 2016 growth target of 7.5 percent.

What are the steps in the budgetary process?

Six steps to budgeting

  1. Assess your financial resources. The first step is to calculate how much money you have coming in each month.
  2. Determine your expenses. Next, you need to determine how you spend your money by reviewing your financial records.
  3. Set goals.
  4. Create a plan.
  5. Pay yourself first.
  6. Track your progress.

What are the five steps of the regular budgetary process?

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Now the budget is the law.

  • Step 1: The President Submits a Budget Request.
  • Step 2: The House and Senate Pass Budget Resolutions.
  • Step 3: House and Senate Create Appropriation Bills.
  • Step 4: The House and Senate Vote on Appropriations Bills.
  • Step 5: The President Signs Each Appropriations Bill and the Budget Becomes Law

What are the three elements of the budgetary process?

Any successful budget must connect three major elements – people, data, and process. A breakdown in any of these areas can have a major impact on your results. How do you bring together the 3 essential elements of a budget?