Below are the answers by the Minister of Finance and Economic Development- Honourable Dr. Thapelo Matsheka to various questions as asked by Members of Parliament in their responses to the budget speech.
- The annual budget is based on our NDPs and their MTRs; in this case the MTR of NDP 11.
- NDPs are themselves medium term plans drawing from our national vision; NDP 11 drew from Vision 2036
- It is therefore through the annual budgets that we implement our medium term plans, being NDP 11 and its MTR Principles.
- Public finance: the role of government is to collect revenues and distribute it through provision of public services and funding the running costs of government
- Social and electoral contract: government has a social and electoral contract with citizens with the expectation that the money collected through tax will be efficiently allocate Process.
- The process entails setting of financial or budget ceilings based on forecasts or projections of the revenues yet to be collected
- There is an extensive consultative process involving project review, Thematic Working Groups (TWGs) and the Estimates Committee with Ministries, Departments and Agencies
- The purpose of the consultations is to ensure alignment with government policy and the expected resource availability for that particular year ahead
- Budget Dipitso are usually conducted for all stakeholders including general stakeholders, Local Authorities and MPs, but due to COVID-19, it was not possible to host them for this year’s budget. The Budget Strategy Paper was still circulated to stakeholders for appreciation and comments nevertheless.