Financing poverty programmes in Botswana under fiscal uncertainty

Abstract

Botswana has achieved an impressive developmental record since independence in 1966 and it belongs to a category of medium human development countries. Despite this achievement, it is faced with development challenges such as poverty. The state provides a policy response in the form of poverty programmes and these are well funded. However, since 2008, the government is faced with a declining revenue envelope because diamonds, the backbone of the economy, are not selling well. Cutback budgeting has been forced on the government and while social programmes have been spared the budget axe, this cannot be guaranteed in the future. Moving forward, there is a need for reform, vitally, rigorous means-testing and dealing with problems such as a dependency syndrome. Finally, the general lesson from this case study is that the government need not wait for a crisis to manifest before interrogating the efficiency of public spending, particularly, on social programmes.

Keywords: Poverty; Poverty Eradication Programmes; Fiscal Uncertainty; Botswana