4. There should be clear and publicly disclosed policies, rules, procedures, or arrangements in relation to the SWF’s general approach to funding, withdrawal, and spending operations.
4.1. The source of SWF funding should be publicly disclosed.
4.2. The general approach to withdrawals from the SWF and spending on behalf of the government should be publicly disclosed.
The Government cannot withdraw more than its share of the Pula Fund, represented by the Government Investment Account, to finance the budget, requiring parliamentary approval. The Pula Fund does not function in any quasi-fiscal/off-budget operation to finance investment, or the purchase of goods and services outside the government budget framework.
The source of the Pula Fund funding is mineral proceeds and this is publicly disclosed.
If the need arises, to enable the Government to pursue agreed national development objectives, Government can withdraw from the Government Investment Account, which represents its share of the Pula Fund. That is, if the Government believed the funds in the Pula Fund are required for productive investment in the country, then the Pula Fund can be utilised. Rules for deposit and withdrawals are clearly defined and approved by the MFED. These are based on the adequacy of the primary reserve (Liquidity Portfolio) and expressed in terms of months of import cover. The rules are shared with the public through presentations and media.
The Government has opted for a qualitative approach. Withdrawal and injection discussions by stakeholders in the context of prevailing fiscal conditions determine the extent of withdrawals and injections. There is no predefined numerical trigger point for withdrawals or deposits. However, such clear trigger points exist for intra-funds transfers (long-term and short-term funds). This approach has served the country well through different economic cycles.