Economy stands at crossroads, economist says
Friday, February 21, 2025 | 210 Views |
Sharing ideas: Mokhurutshe
Speaking during the Access Bank Botswana 2025–2026 budget review last week, Kgori Capital economist, Kitso Mokhurutshe, said the fiscus must be brought to balance without delay, as continued deficits pose a significant risk to economic resilience.
He said budget surpluses are essential to rebuilding fiscal buffers and ensuring the country can withstand future financial shocks, adding that strengthening revenue collection and broadening the tax base are imperative steps toward this goal. He said targeted tax increases on high earners are a welcome development in fostering a more equitable and sustainable fiscal structure.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...