PFM Reforms Programme

Posted in Development and Budget Division

PUBLIC FINANCE MANAGEMENT REFORMS PROGRAMME (PFMRP)

Botswana has evolved from one of the ten least-developed countries at independence in 1966 to a high middle-income country, characterized by sustained economic growth, anchored on good governance, peace, political stability and sound macroeconomic management. Fundamental human rights and freedoms are entrenched in the Constitution, respected in practice and enforced by the Courts. Whilst minerals, principally diamonds, remain the dominant source of revenue, there has been growth in such sectors as financial services, tourism and manufacturing.

In spite of the country’s economic growth and the positive trends in poverty indicators, income disparities remain a concern and achievements were undermined by the prevalence of the HIV/AIDS scourge in the past and current shrinking revenue sources. The narrow base of the economy, which depends substantially on mining of diamonds, and the low inclusiveness of economic growth, providing for relatively high unemployment, are other threats to the development of the country in the medium-term.

To secure future continued economic growth and development of Botswana, the government follows a policy of economic diversification; promotion of foreign direct investment, private sector development, improvement in total factor productivity, enhancing a stable environment for business and human capital development. It further underlines the need for more efficient and effective implementation of policies by the administration, to increase quality of service delivery and value for money, especially in the context of anticipated diminishing government revenues related to mining activities in the country.

The 2009 Public Expenditure and Financial Accountability (PEFA) assessment, financed by European Union assisted in identifying areas for reform. In July 2010, the Government of Botswana developed and adopted a comprehensive, integrated PFM Reform Programme (PFMRP). PEFA repeat assessments were carried out in 2013 and 2019 respectively, and their results are expected to substantially inform the envisaged new roadmap. The overarching goal of Botswana's PFM Reform Programme is to ensure optimal utilization of public resources for long-term sustainable development.

With a challenging fiscal environment and ever evolving nature of PFM, the Government of Botswana will continually review and align the reforms with new conditions. The second PFM reform roadmap is currently being developed which will run concurrently with the implementation period of the second phase of the NDP 11 (following the mid-term review), and Vision 2036. The second PFM reform roadmap will ensure the achievement of priority objectives set out in NDP 11, Vision 2016 and Sustainable Development Goals (SDGs).

PFM Structures:

PFM Steering Committee

PFM Coordinating Committee

PFM Coordinating Unit/PFM Secretariat