Government will raise the income tax threshold from M880 to M924 per month, the Minister of Finance and Development Planning, Dr. Timothy Thahane, has announced during his presentation of the 2005/06 Budget. 

This is being done because for a number of years the country has not reviewed its income tax scales which have been eroded by inflation. This is meant to give a break to low income earners.  There will also be an across the board salary adjustment of five percent for civil servants. 

A total expenditure of M4,772.18 million has been proposed for the 2005/06 financial year 

The Minister also announced a M50 million allocation from the recurrent budget, to 128 Community Councils and the Maseru City Council to meet the costs of the envisaged Councils and related institutions such as the newly created offices of District Administrators. 

This was however, an interim measure since decentralisation is only meaningful if financial responsibility is also bestowed on the Councils, Dr Thahane said. 

Government will also update and modernise the various financial services laws relating to insurance, pensions, hire-purchase agreements and motor vehicle compensation 

On the education front, Dr Thahane cautioned Basotho that with the success of the Free Primary Education project openly evident, the country must find the resources to have enough secondary schools to receive the first of the project’s batch of scholars finishing Class Seven as it comes off in January 2007.

16 February 2005