For the past financial year, a projected outturn in total expenditure is estimated at 57.7 percent of GDP comprising of 44.1 percent and 13.6 percent of GDP in recurrent and capital spending respectively.
This demonstrate another slight decline from 2019/20 total expenditures in nominal terms.
The Minister of Finance Thabo Sophonea made these remarks on Wednesday when presenting the 2021/22delivering his budget speech on Wednesday for the 2021/22 fiscal year at the National Assembly.
He said while most components of recurrent spending are expected to maintain the upward trajectory, operating costs are expected to decline consequent to the government policy of rationing expenditure through the release of monthly warrants.
A drastic cut in international travel is also attributed to the expected decline in this category. A policy is hailed as crucial in ensuring efficiency in public finance management.
On the other hand, caution must be exercised not to curtail operating costs that are required for service delivery, the focus must be on unproductive consumption.
For 2021/22 fiscal year, capital budget will rebound to 15.7 percent of GDP as the government remains committed to alleviate the development gap and promote growth and job creation.
“Government is faced with a need for a tight fiscal consolidation effort to counter the effects of the pandemic and lingering fiscal imbalances while at the same time advancing productive capacity,” Mr Sophonea said.