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
Our digital safety is in our hands

That sounds like good news. But the report also warns that this may simply be because our digital economy is still young, not because we are safe. As more people shop, bank and pay online, criminals will follow.We Batswana do not need a report to tell us that danger is real. Many of us have heard of or fallen victim to KYC scams. A caller impersonates your bank or mobile money provider. They say they need to “verify” your account. They ask...

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