The aim of this note is to highlight some of the socio-economic issues in proposed budgetdevelopment expenditure that the Botswana Government has set out as a priority in the waragainst HIV and AIDS. Due to the impact of Hlv/AIDS scourge in Botswana, the childmortality rate has increased since the middle of the 1990s. For instance, currently 56 infants outof 1,000 born in Botswana die before their ftrst birthday. However, the number of children whodied in their ftrst ftve years was 63 per 1,000 live births in 1991, but was reduced to 45 per 1,000in 1996 before the severe impact of HIV and AIDS. It is suggested that AIDS has increased themortality rate of infants and under-ftve years in Botswana. Additionally, infant deaths are alsofound to be related to the prevalence of HIV and AIDS.One major target set by the Government of Botswana is to reduce the number ofinfants born to HIV-positive mothers by half by 2006 and to zero by 2009. This is in line withthe Millennium Development Goals (MDG) of combating HIV and AIDS and other diseases.Currently in Botswana, HIV and AIDS prevalence for the age group 15 to 49 years has beenreduced from 22.8% in 2003 to 17.8% by end of 2005. Additionally, the Sentinel Surveillancestudy for 2005 indicated that HIV prevalence among pregnant women aged 15-49 yearsdeclined from 37.4% in 2003 to 33.4% in 2005. This reveals that HIV and AIDS is still a majorhealth problem which might hinder the realization of the goals of Vision 2016. This is becauseHIV and AIDS impacts negatively on human capital resources which results in low produc-tivity and output growth for Botswana's economy, since these factors are essential inputs in theeconomy's production function. It is therefore apparent that, in order to achieve the goals andobjectives of Vision 2016 as well as the theme for the 2006/07 budget Building an InnovativeEconomy for the 21st Century, Botswana needs to direct both ftnancial and human resources toftght HIV and AIDS in order to have an efficient and productive labour force.

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