Recession calls for prudent spending

MAUN - The managing director of Maun Lodge says business owners should financially discipline themselves and be selective in their spending. Speaking at a budget review session organised by Stanbic Bank, Mr John Wellio said following the presentation of Botswana's 2012/2013 budget by the minister of finance and development planning, business owners should be mindful of the stern warning made by government. "The minister stated that this year's budget dictates that we must operate within a severely constrained budget and that the budget was prepared under conditions of considerable uncertainty with a possibility of yet another recession looming," he said. Mr Wellio indicated that it is going to be a tough year for everyone. "As we are all aware, government is a major player in the economy and we all depend on government spending," he stated. He further said if government does not spend, it means the private sector has got very little in economic activity. "When government tightens up, the private sector gets a shiver," he noted. Mr Wellio said businesses should get their priorities right so that they can stay afloat and cautioned that if they do not tread carefully they will be the losers. Mr Wellio said it was worrying that the minister stated that Botswana's investment climate is not conducive. "A conducive business environment is necessary if we have to diversify the economy," he said.