Mmegi

Econsult raises alarm on fiscal sustainability

Watching the numbers: Serame announced a considerable deficit in February that she plans to finance through domestic borrowing
Watching the numbers: Serame announced a considerable deficit in February that she plans to finance through domestic borrowing

Researchers at economic consultancy firm, Econsult Botswana, say government’s continuing tendency to spend more than it has, and perennially run deficits, is draining its savings and putting the country on an unsustainable economic trajectory.

Generally, Botswana is known for its prudent fiscal policy, with excess government earnings being saved or invested in offshore accounts to shield the mineral dependent economy from rainy days. Despite this track record, the government has, in recent years, been withdrawing significantly from these savings to finance national budget gaps.

The situation has decreased the economy’s resilience in the face of future shocks.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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