Economy faced with low growth rates and high unemployment

Let me start by conveying my sincere appreciation to you all, for finding time to attend this event, the 2021 Budget Pitso, held in a hybrid format. In this way, we are able to reach as many stakeholders as possible who have connected virtually, as we observe the COVID- 19 protocols that only permit small gatherings. Virtual platforms also provide an opportunity to strengthen the use of digital services within Government, as we adapt to the “new normal”. This is envisaged to improve public service delivery and align to the digitisation agenda.

Our development planning and budgeting process in the country has been grounded in broad and inclusive consultations from as far back as independence when the first Plan was prepared. This is why today we have a Forum such as this one, known as the Budget Pitso. The purpose of the Budget Pitso is to engage stakeholders; in academia, trade unions, civil society, development partners, non- governmental organisations, and business associations, in order to obtain their views on matters concerning the next annual national budget.

In this year’s Budget Pitso we have included the youth as part of the discussants, to solicit their views and input. Our aim is to make the forum more inclusive, hence we have more stakeholders with us virtually.

As part of the preparations of this Budget Pitso, my Ministry has prepared a discussion document called the Budget Strategy Paper ( BSP), which has been shared with all of you. The 2021 BSP sets out the framework for the preparation of the 2022/ 2023 National Budget and Budget Speech, which I will present in February next year. The Paper outlines macroeconomic developments in both the global and domestic economies. The national priorities entail key areas of importance in the coming financial year, while the Medium- Term Fiscal Framework provides an indicative resource envelope as well as its proposed allocation among the various expenditure lines/ votes. The current BSP was prepared under extremely challenging circumstances brought about by the COVID- 19 pandemic.

However, the risks to the outlook are in some respects less pronounced than they were last year, when the economy was hard hit, contracting by 8.5 percent in real terms. Although we expect a strong economic recovery this year, risks and uncertainties remain. This year, we have seen an exponential increase in COVID- 19 cases and related mortality. Though, the number of new cases recorded on a daily basis has been declining steadily in recent weeks, there is still a risk for the fourth wave towards the end of the year. It is therefore important that we continue to comply with all the health protocols as advised by the experts leading the fight against the disease.

The recent decline in new cases can be attributed to increased vaccination rates, coupled with containment measures that Government has put in place. Globally, the pandemic seems to be under control, primarily due to the widespread of vaccine rollout. This has allowed many countries to relax movement and border restrictions, thus opening up their economies.

Locally, we continue to monitor the situation closely and considerations on further opening up of the economy and society will be dependent on the success with regard to vaccine rollout and other disease containment measures.

So far, the Government has made efforts in ensuring that sufficient vaccines are secured.

In light of this challenging environment, concerted efforts are being made towards saving lives of Batswana and economic recovery. The restoration of the economy continues to be guided by the Economic Recovery and Transformation Plan ( ERTP), launched as part of the Mid- Term Review ( MTR) of National Development Plan ( NDP 11), as well as the Government Reset Agenda, launched by His Excellency the President, Dr. Mokgweetsi Eric Masisi in May 2021. Both are geared towards taking our economy to another level, despite the economic challenges we are faced with. I therefore implore you all to move along with these reset agenda priorities to transform our economy through innovation and technological strides.

Although the details of the 2021 Budget Strategy Paper will be done by