The government is preparing to review the 15 percent committed allowance paid to senior public service executives as it intensifies efforts to rein in recurrent expenditure amid mounting fiscal pressure from declining diamond revenues.
Permanent Secretary in the Ministry of Finance Dr Tshokologo Kganetsano said the allowance costs government close to P100 million annually and has become a priority as authorities seek to contain spending while preserving essential public services.
Speaking on government’s expenditure reduction programme, Kganetsano said ministries had already cut operational costs, but reviewing personnel-related allowances had become unavoidable.
‘We have managed to cut expenditure in several areas, but there is still a need to revisit committed allowances because they consume close to P100 million from government coffers,’ he said.
Kganetsano questioned whether the allowance continues to fulfil its intended purpose, revealing that some beneficiaries still receive the payment despite not performing official duties outside normal working hours. He also acknowledged growing dissatisfaction within the public service, with junior officers arguing they often work beyond normal hours without receiving comparable benefits.
The Ministry of Finance is considering a wider review of public sector allowances and will engage the Directorate of Public Service Management before implementing any changes.
The proposal forms part of Botswana’s broader fiscal consolidation programme as weak global diamond demand continues to erode mineral revenues, the country’s largest source of government income. Authorities have already introduced tighter controls on travel, procurement and operational expenditure, with personnel costs now emerging as the next focus of spending reforms.
The World Bank and the International Monetary Fund have repeatedly urged Botswana to curb growth in its public sector wage bill while improving productivity and domestic revenue mobilisation.