The proposed 2025/26 budget makes no mention of the recent 90-day suspension of US foreign aid, despite its potential to significantly impact the country’s finances. With key sectors such as healthcare and horticulture relying on USAID funding, experts warn that the freeze could create a substantial funding gap, potentially disrupting ongoing development projects and essential services.
Despite these concerns, the government has yet to present a clear strategy for addressing the potential shortfall or mitigating its effects on critical sectors. This silence has raised alarms among stakeholders, including politicians and economic analysts, who fear the absence of a contingency plan could lead to economic instability.
Dr ‘Mabataung Maphathe, an economic expert, criticized the government’s lack of response, noting that the public expected budget estimates to address the issue.
“Expectations were that the government would clarify its strategy for mitigating the funding shortfall and preventing adverse effects on key sectors such as healthcare and agriculture,” Maphathe said.
“Even if the budget estimates were finalized before the aid freeze was announced on January 20, the Minister of Finance should have acknowledged the potential impact and outlined a plan during her speech.”
Dr Maphathe emphasized that addressing the aid freeze in the budget speech would have demonstrated the government’s commitment to managing the economic challenges it poses. Instead, she said, the government’s silence raises concerns about its readiness to handle the situation.
Particularly troubling, she noted, is the reduction in the Ministry of Health’s budget, which has dropped from M3.4 billion in the 2024/25 fiscal year to M3.1 billion for 2025/26.
“The Ministry of Health is vital to ensuring the well-being of citizens. A reduction of M0.3 billion may seem minor, but it could significantly impact the ministry’s ability to provide quality healthcare, especially if the aid freeze is not adequately addressed,” Dr Maphathe warned.
Meanwhile, the agriculture sector, which received an estimated M1.3 billion—unchanged from the previous budget—is regarded as a key pillar of the national economy.
When presenting the budget under the theme ‘Building Strategies for Inclusive Growth,’ Minister of Finance and Development Planning Dr Retšelisitsoe Matlanyane maintained that the allocated funds would support the Ministry of Health in delivering essential services.
“As we continue to grapple with the burden of both communicable and non-communicable diseases, we are committed to taking bold steps to enhance health services and innovation across the nation,” Matlanyane said.
She highlighted the adoption of Primary Health Care (PHC) as a key strategy to ensure accessible, community-driven, and comprehensive healthcare services.
“This approach will help reduce the incidence of diseases such as tuberculosis (TB), HIV/AIDS, and chronic non-communicable conditions like hypertension and diabetes, while also strengthening our healthcare infrastructure.”
Matlanyane also underscored the government’s commitment to community engagement and empowerment as critical components of improving health outcomes. She noted that integrating health services with local community systems and supporting healthcare workers would enhance health security, biosecurity, and patient safety.
“In our fight against tuberculosis, we are employing innovative tools such as digital X-ray technology with Artificial Intelligence (AI) to improve diagnostic accuracy and advance our healthcare sector,” she said.
She added that the government remains committed to tackling HIV/AIDS through comprehensive testing, treatment, and prevention initiatives to ensure no one is left behind.
However, opposition figures remain critical. Member of Parliament and leader of the Mpulule Political Summit, Remaketse Sehlabaka, condemned the government’s handling of both the aid freeze and the reduced health budget.
“The budget estimates fail to address this crucial issue, raising questions about the government’s competence and commitment to protecting economic stability. These are not matters that can be ignored,” Sehlabaka asserted.
She further warned that every day without a clear plan from the government increases uncertainty for citizens and the economy. However, she noted that since the budget estimates are still subject to review and debate in parliamentary committees, legislators would use the opportunity to push for clarity on the government’s approach to handling the aid freeze and the reduced health budget.
