Government is blowing hot and cold over job security in the public sector.
It has to this end sent mixed signals to a cluster of Ministries, Departments and Agencies (MDAs) reminding them that implementation of a presidential directive seeking to abolish some positions in the Public Service still stands.
In the same vein, the government also informed ministries and departments that additional funding for new positions would be included in the next financial year (2021/22).
In a letter seen by this publication, the then acting Directorate of Public Service Management (DPSM) Director Samuel Rathedi reminded government ministries that as the budgetary process for financial year 2022/2023 has commenced, there is need to modify processes and operations for the purpose of aligning them to the new reality in terms of resource utilisation.
“A major challenge facing the Government of Botswana is the unsustainable level of the wage bill, which currently stands at 15% of Gross Domestic Product (GDP) against the acceptable level estimated at less than 10%,” states the letter.
It says the wage bill as a percentage of the Total Ministerial Recurrent Budget on the one hand stood at 46.2 million pula in 2018/19 48.3 million pula in 2019/20, 52.2 in 2020/21 and 53.7 million pula in 2021/22.
The government says the high wage bill is worrisome not only from a fiscal perspective but also from the growth perspective. It says an upward movement in Public Sector wages tends to, among others, impede the private sector’s ability to compete effectively.
“Addresses may be aware; the Covid-19 pandemic has exacerbated this by causing unprecedented levels of economic disruption resulting in increased expenditure against the already declining revenues,” reads the letter in part.
In response to the above mentioned challenges, Rathedi’s letter states, the Government of Botswana has adopted fiscal consolidation measures aimed at, amongst others, efficient allocation of resources, reducing and ultimately eliminating wastage and entrenching cost containment.
“Furthermore, Ministries Departments and Agencies (MDAs) should be mindful that the DPSM is still implementing Presidential Directive CAB 06EX0/2020, which directed that an equivalent of 50% of vacant positions in value terms be abolished, as part of the measures to reduce the public sector wage bill,” the letter states.
The letter further states: “In view of the above, addresses are informed that additional funding for new positions will be accommodated during the 2022/2023 financial year budget estimates.”
The DPSM advised MDAs to instead continue rationalising vacant position to fund critical manpower requirements.
Last year, our sister publication, Sunday Standard, reported that the government has secretly implemented an unpopular advice of the International Monetary Fund(IMF) to downsize the civil service behind the backs of public service unions.
It reported that a document marked the Director of Directorate of Public Service Management, (DPSM),Goitseone Mosalakatane addressed to government ministries, departments and agencies, shows that Botswana has officially bowed to pressure and agreed to IMF’s demands to downsize its public service.
In the same savingram, the DPSM boss informs ministries and government departments that, “The policy discussions during the 2018 IMF Article consultation with the Botswana Government has highlighted the need for Public Sector Reforms, including a gradual reduction in the size of the sector over time, which would allow the state to focus on providing high-quality services more efficiently.”
It has further revealed that the Government’s overall expenditure envelope as a share of GDP, is very high by International standards, thus warranting a thorough assessment of pockets of unproductive spending and ways to increase efficiencies.”
She further stated:“As you might be aware, the Ministry of Finance and Economic Development (MFED) has revealed during the 2021/22 budget preparation that a major challenge facing the Government of Botswana is the unsustainable level of the personal emoluments.”
