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
Women unite for progress

It underscores the indispensable role women play in our society, particularly in building strong households and nurturing families. The recognition of women as the bedrock of our communities is not just a sentiment; it's a call to action for all women to stand together and support each other in their endeavours.The society's aim to instil essential principles and knowledge for national development is crucial. By providing a platform for...

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