Decompose your budget - IMF

Giving a public lecture at the Bank of Botswana this week, visiting IMF Deputy Managing Director, Naoyuki Shinohara, said because Botswana aims to achieve fiscal balance next year, it needs to decompose the overall budget into mining and non-mining.

"As you aim to achieve a balanced budget next year, it is prudent that you decompose the overall fiscal balance into a mining and a non-mining balance. This is critical for the interpretation of fiscal policy developments and for determining the macroeconomic impact of fiscal policy. Unlike the non-mining fiscal balance, the overall fiscal balance may not be a reliable indicator of the impact of fiscal policy on domestic demand, or the government's adjustment effort."