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
Micro-procurement maze demands urgent reform

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...

Have a Story? Send Us a tip
arrow up