Econsult raises alarm on fiscal sustainability
Friday, May 03, 2024 | 420 Views |
Watching the numbers: Serame announced a considerable deficit in February that she plans to finance through domestic borrowing
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.
“The trouble with government regulation of the market is that it prohibits capitalistic acts between consenting adults.”~ Robert NozickWhile government must contain the disease, it must also confront the growing economic hardship caused by its response. For many rural households, cattle remain a source of livelihood and the only means for tending for thousands of families, and for these kind of people the longer the restrictions continue, the...