…of PIM reforms, Public Expenditure Efficiency, Revenue Maximisation
The Ministry of Finance has revealed that the 2026/27 fiscal strategy will be anchored on three critical pillars of Public Investment Management (PIM) reforms, Public Expenditure Efficiency, and Revenue Maximisation efforts.
According to the 2026/27 Budget Strategy Paper, this comprehensive approach aims to create a robust and sustainable fiscal framework.
It says by enhancing the effectiveness of how public funds are invested, optimizing the allocation and use of public expenditures, and strengthening revenue collection mechanisms, government can achieve its overarching objective of sustainable revenue generation. This it says will fortify the national budget and lay a strong foundation for future growth and public service delivery.
On PIM reforms, the ministry stated that, “Botswana’s drive towards sustainable fiscal stability and economic transformation calls for a strong and efficient PIM Reform.” The ministry stated that a well-structured PIM Reform would help address challenges associated with infrastructure and development projects by introducing a clear, transparent framework for evaluating and prioritising projects based on economic returns and alignment with national development priorities.
“Government will, therefore, improve the appraisal, selection, and execution of capital projects through rigorous cost-benefit analysis.”
Regarding Public Expenditure Efficiency, the Ministry promised to intensify its oversight mechanisms. This includes a continuous program of Ministerial audits targeting various expenditure streams to identify and eliminate inefficiencies, irregularities, and mismanagement.
In parallel, government will continue to implement a more rigorous framework for managing supplementary budgets. “The objective is to restrict their use to genuine emergency situations, thereby mitigating fiscal drift and preserving the integrity of the original budgetary framework. A key procedural reform will be to mandate that any supplementary appropriations are financed through reallocations within the existing budget, rather than through new or deficit-financed spending.”
Furthermore, government will focus on using the PPP model to acquire essential infrastructure. This approach is designed to secure necessary assets while carefully managing national debt and public finances as well as foster transformative projects and establish a decisive, private-sector leadership role.
According to the paper, government is adopting more rigorous and transparent fiscal management tools stating that regular analysis will be conducted to compare actual spending against planned allocations. “This will enable the identification of inefficiencies and ensure that public expenditure is consistently aligned with established policy priorities.”
Furthermore, “the strict enforcement of Zero-Based Budgeting (ZBB) will compel government agencies to justify all expenditure requests from a zero-base, rather than basing budgets on previous allocations. This approach is designed to ensure that spending is deliberately aligned with the nation’s development priorities and resource availability, promoting greater fiscal discipline.”
In an effort to minimise leakages and enhance efficiency within the procurement system and processes, government is advancing adopting an e-procurement system by 2026/27. By digitising procurement, government aims to enhance market transparency and establish uniform regulatory controls. This intervention is expected to mitigate corruption, curb price gouging by suppliers, and ultimately foster a more competitive and efficient market for public goods and services.
The ministry stated that Revenue maximisation will be a key fiscal strategy for 2026/27, aimed at strengthening Botswana’s financial position and reducing overreliance on volatile mineral revenues. It says a core component of this strategy involves repurposing State-Owned Enterprises (SOEs) to operate more commercially, focusing on profitability, innovation, and service delivery efficiency, while reducing their dependence on government subventions.
Similarly, local authorities will be encouraged and capacitated to generate their own revenue through improved financial management, local economic development initiatives, and innovative service-based income streams.
Further, government, through Botswana Unified Revenue Service (BURS), is making significant strategic changes on its fiscal framework to boost revenue collection and compliance. The overall effort is targeted at mitigating revenue leakages and ensuring a more sustainable national revenue stream.
