Budget deficits expose Botswana to credit rating downgrade

The Budget Strategy Paper for the 2018/19 financial year projects the budget deficit for the current financial year to increase from P2.35 billion announced by Finance Minister, Kenneth Matambo in February to P6.5 billion. 

The deficit is seen widening to P8 billion in the next financial year leading to cumulative budget gap of P15 billion by 2020, a development that is contrary to government’s commitment in NDP 11 to reign in budget deficits.