1.   Short title

   2.   Interpretation

   3.   Administration

Control and Management of Public Finances and Supplies

   4.   Powers and duties of Minister

   5.   Development of macro-economic and fiscal policy by Minister

   6.   Accounting responsibility

   7.   Duties of public officers

   8.   Appointment of revenue collectors, supplies officers, etc.

   9.   Basis of accounting and classification of accounts

   10.   Powers of Permanent Secretary

   11.   Internal audit examinations

   12.   Government Audit Committee

   13.   Designation, powers and duties of the Accountant-General

   14.   Government supplies

   15.   Banking, etc. of public moneys

   16.   Imprests

   17.   Deposits

   18.   Public officers as trustees

Loans, Guarantees and Grants

   19.   Authority to raise loans

   20.   Power of Minister to borrow

   21.   Repayment, conversion or consolidation of loans

   22.   Authority to guarantee loans

   23.   Beneficiary to reimburse all costs

   24.   Authority to receive grants

   25.   Amounts due on loans guarantees to be charged on Consolidated Fund

   26.   Minister to specify particulars in annual estimates

   27.   Delegation by Minister


   28.   Withdrawals from Consolidated Fund

   29.   Warrant to lapse at end of financial year

   30.   Withdrawals from other public funds

   31.   Provision if Appropriation Act not in force

   32.   Contingencies Fund

   33.   Other advances

   34.   Re-allocation between organisations

   35.   Losses

Development Fund and Special Funds

   36.   Development Fund

   37.   Definition of "Special Fund"

   38.   Establishment of Special Funds, etc.

   39.   Existing Special Funds

   40.   Administration, etc. of Special Funds

   41.   Dissolution of Special Funds

Audit and Accounts

   42.   Annual public accounts


   43.   Power of surcharge

   44.   Powers of Permanent Secretary to surcharge public officers

   45.   Accounting officers to submit quarterly reports on surcharge

   46.   Withdrawal of surcharge

   47.   Appeals

   48.   Recovery of surcharge


   49.   Liability to keep public money

   50.   Government property

   51.   Deduction from money due by Government

Financial Regulations, Instructions and procedures

   52.   Regulations

   53.   Regulations to authorise use of electronic forms, transactions, etc.

   54.   Financial Instructions, procedures and manuals


   55.   Abandonment of claims, etc. and write-off of public money and supplies

   56.   Offences and penalties

   57.   Right to institute civil and administrative actions reserved

   58.   Repeal of Cap. 54:01

   59.   Transitional and savings provisions


Law 15,1965,
Act 5,1969,
Act 2, 1970,
S.I. 56, 1970,
Act 5, 1972,
Act 2, 1973,
S.I. 26, 1973,
Act 27, 1976,
S.I. 30, 1976,
Act 45, 1977,
Act 17, 1980,
Act 20, 1980,
Act 27, 1982,
Act 21, 1997,
Act 18, 2006,
Act 17, 2011,
S.I. 12, 2013.

An Act to make provision for the control and management of public moneys and public supplies and for matters connected therewith and incidental thereto.

[Date of commencement: 1st April, 2013]

(ss 1-3)

1.   Short title

   This Act may be cited as the Public Finance Management Act.

2.   Interpretation

   (1) In this Act, unless the context otherwise requires-

   "Accountant-General" means a person appointed in terms of section 13;

   "accounting officer" means a person designated as an accounting officer under section 6;

   "Appropriation Act" means an Act of Parliament the purpose of which is an appropriation of public revenues pursuant to section 118 of the Constitution;

   "Auditor-General" means a public officer whose office is created and defined in section 124 of the Constitution;

   "conditions of employment" means the conditions of employment for the public service issued from time to time by the Government defining the conditions of service of public officers;

   "Consolidated Fund" means the fund established by section 117 of the Constitution;

   "Development Fund" has the meaning assigned to it under section 36;

   "development revenue" means the revenue accounts as detailed in the annual Development Fund Estimates;

   "Director of Internal Audit" means the public officer designated by the Permanent Secretary to guide, direct and co-ordinate the activities of officers appointed by the Permanent Secretary under section 11;

   "Financial Instructions" means instructions issued by the Minister under section 57;

   "financial year" means any period of 12 months ending on 31st March;

   "Minister" means the minister responsible for finance and development planning;

   "organisation" means a Government ministry, department, or other entity of the Government listed in the Appropriation Act for purposes of being allocated with funding from the Consolidated Fund;

   "Permanent Secretary" means the Permanent Secretary of the ministry responsible for finance;

   "public fund" means any fund or account of public moneys;

   "public moneys", includes-

   (a)   public revenues; and

   (b)   any trust or other moneys, or securities received or held, whether temporarily or otherwise, by any public officer in his or her official capacity either alone or jointly with any other person;

   "public officer" has the meaning assigned to the term in the Public Service Act subject to subsections (3) and (4);

   "public private partnership" means a commercial transaction between an entity to which this Act applies and a private party in terms of which the private party-

   (a)   for commercial purposes performs a public function or undertakes the establishment, maintenance or management of public property, whether on behalf of the entity or for own account;

   (b)   assumes substantial financial, technical or operational risk; and

   (c)   receives a benefit for the performance of the function or for the establishment, maintenance or management of the public property, which benefit may be in the form of-

      (i)   consideration paid by the entity from its funds,

      (ii)   charges or fees collected by the private party from customers for the provision of the public function or for the establishment, maintenance or management of the public property, or

      (iii)   a combination of such consideration, charges or fees;

   "public supplies" means property of any description (other than money,and securities) belonging to, in the possession of, or under the control of Government;

   "Special Fund" has the meaning assigned to the term in section 37;

   "standing imprest" means an advance of money provided to an officer for disbursement on approved expenditure in instances where vouchers cannot first be submitted to the Accountant-General or a Treasury cashier for payment due to the nature and exigencies of office duties;

   "statutory expenditure" means expenditure charged on the Consolidated Fund under section 118(1) (a) of the Constitution;

   "supplies" means plant or equipment, furniture, tool, spare part, food items, fuel, clothing, pharmaceuticals or all other types of materials which are the property of the Government, including livestock belonging to the Government; and

   "Supply Instructions and Procedure" means the Supply Instructions and Procedure to be issued by the Minister under section 57.

   (2) Where the Minister is of the opinion that adequate provision exists outside this Act for the management of moneys forming part of any trust fund of which a public officer is a trustee, he or she may, by Order published in the Gazette, direct that such money shall not be public moneys for the purposes of this Act.

   (3) For the purposes of this Act, a person shall not be considered to be a public officer by reason only of the fact that he or she is in receipt of any remuneration or allowance from public revenues, and the provisions of section 127(3) and (4) of the Constitution shall have effect in relation to this Act as they have in relation to the Constitution.

   (4) A public officer acting otherwise than in his or her official capacity shall not be regarded as a public officer for the purposes of this Act.

   (5) Where there is any doubt as to the capacity in which a public officer acts he or she shall be deemed to be acting in his or her official capacity unless the contrary is proved.

3.   Administration

   (1) All or any of the functions conferred by this Act on the Permanent Secretary (excluding the functions conferred by this section) may, subject to the general or special directions of the Permanent Secretary, be carried out by any other public officer in his or her Ministry for the time being designated by the Permanent Secretary, in writing, for that purpose.

   (2) In the exercise of his or her functions under this Act, the Accountant-General shall act in accordance with the general or special directions of the Permanent Secretary.

Control and Management of Public Finances and Supplies
(ss 4-18)

4.   Powers and duties of Minister

   (1) The Minister shall supervise the finances of Botswana as to ensure that a full account of the finances is made to the National Assembly, and that Botswana's financial control is maintained, and for such purposes shall, subject to the provisions of the Constitution and this Act, have the control and management of the Consolidated Fund, the Development Fund and all other public funds, and the supervision, control and direction of all matters relating to the financial affairs of Botswana.

   (2) Without derogating from the generality of subsection (1), the Minister shall-

   (a)   develop and implement a macroeconomic and fiscal policy frame-work for Botswana, as provided in section 5;

   (b)   cause the establishment of systems throughout Government for planning, monitoring, allocating and budgeting for the use of public moneys and supplies in order to attain efficiency and effectiveness of the economy;

   (c)   cause the review of all requests for the issue of moneys from the Consolidated Fund and, where the Minister considers it appropriate, approve their inclusion in estimates of expenditure for submission to the National Assembly in accordance with section 5;

   (d)   provide a framework for the scrutiny and control by the National Assembly over the utilisation of public supplies and public moneys by maintaining clear reporting methods and systems which-

      (i)   comprehensively set out the applicable hierarchy and procedures for accountability,

      (ii)   ensure the exercise of regularity and propriety in the handling and expenditure of public money and, in particular, demonstrate that goods or services are procured in a fair, equitable, competitive and cost- effective manner in accordance with the law providing for public procurement, and

      (iii)   ensure that the Consolidated Fund is effectively managed and shall-

         A.   ensure that all deductions from the Fund are for the purpose of authorised or statutory expenditure in accordance with the provisions of this Act and sections 118 and 119 of the Constitution, and

         B.   require compliance with the established lines of responsibility and best practice regarding principles of fiscal management in the handling of the moneys of the Consolidated Fund, other funds or special funds established under this Act and other public moneys; and

   (e)   safeguard public assets by acting under and complying with statutory authority and control when conducting the following financial transactions on behalf of the Government-

      (i)   borrowing of money,

      (ii)   issuing securities,

      (iii)   investing public moneys,

      (iv)   giving guarantees and indemnities, and

      (v)   operating bank accounts.

5.   Development of macro-economic and fiscal policy by Minister

   (1) The Minister shall develop and implement a macroeconomic and fiscal policy framework as part of the National Development Plan or any other medium-term planning framework that may be adopted.

   (2) The Minister shall develop macroeconomic objectives in terms of subsection (1) that shall provide for the-

   (a)   broad strategic priorities by which Government shall be guided in the preparation of the budget;

   (b)   overarching policy goals that will guide the budget decisions;

   (c)   policy areas that the Government is to focus on;

   (d)   accord between the budget for the year and the goals of the National Development Plan;

   (e)   advice to Government on the total of public moneys available or that which would be made available and the allocation of such moneys to individual programmes;

   (f)   supervision and monitoring of public moneys; and

   (g)   co-ordination of the international and inter-governmental financial and fiscal relations of Botswana.

   (3) The Minister shall develop macroeconomic fiscal policy objectives in terms of subsection (1) that are to achieve the following principles of fiscal management-

   (a)   reduction of the total debt to prudent levels so as to provide protection against factors that may impact adversely on the level of total debt in the future;

   (b)   maintenance of appropriate levels of debt that do not exceed the limitation on borrowing provided for in section 20 of the Stocks, Bonds and Treasury Bills Act;

   (c)   prudent management of the fiscal risks facing the Government; and

   (d)   pursuit of policies that are consistent with a reasonable degree of predictability about the level and stability of tax rates for future years.

   (4) The Minister shall, annually, present to the National Assembly a report on the-

   (a)   current and projected state of the economy;

   (b)   finances of Botswana; and

   (c)   fiscal policy of the Government.

   (5) For the purpose of subsection (4), the Minister shall at the time of presentation of the estimates as required by section 6, ensure that a complete report is made to the National Assembly which-

   (a)   sets out recent trends and development indicators of the national economy;

   (b)   identifies the period considered by the Minister to be appropriate for the planning of the fiscal policy of the Government;

   (c)   provides forecasts of the indicators referred to in subparagraph (i), for the current year and the period determined by the Minister under paragraph (b);

   (d)   supplies detailed information on recent fiscal developments and forecasts for the period determined by the Minister under paragraph (b) in respect of-

      (i)   revenues,

      (ii)   recurrent and development expenditures,

      (iii)   borrowing and debt servicing,

      (iv)   contingent liabilities, and

      (v)   any other information in respect of assets and liabilities that may be considered appropriate by the Minister.

   (6) For the purposes of subsection (4), the Minister shall at the time of presentation of the estimates as required by section 6, present or submit to the National Assembly-

   (a)   a report on the level of compliance by the Government with macroeconomic objectives and the principles of fiscal management as provided in subsection (2) and (3), and

   (b)   any additional reports and information as may be necessary during the financial year.

6.   Accounting responsibility

    (1) The Minister shall, when laying the annual estimates of revenue and expenditure of the Consolidated Fund in respect of each organisation, designate a public officer to be the accounting officer for such organisation.

   (2) Notwithstanding anything contained in subsection (1), the Minister may, if he or she thinks it desirable-

   (a)   designate different public officers in respect of different parts of an organisation of revenue or expenditure; and

   (b)   at any time designate a public officer to be the accounting officer for any organisation or any part of any organisation and include such designation in the next appropriate supplementary estimates of expenditure or revenue.

   (3) Where a public officer has been designated in respect of such organisation as referred to in subsection (2), the provisions of subsection (4) shall apply to such officer in respect of such organisation for which he or she is designated.

   (4) A public officer designated under this section shall be responsible, for the organisation in respect of which he or she is designated, for-

   (a)   the control of expenditure;

   (b)   the collection of revenue and the payment thereof into the Consolidated Fund;

   (c)   the procurement, control, custody, issue and use of all public supplies;

   (d)   control, custody and use of public moneys; and

   (e)   such other matters as may be provided in this Act and the Financial Instructions.

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