Elections could stall budget balancing - Moody's

The general elections set for October are likely to delay government’s plans to tighten its budget and erase deficits, leading credit ratings and research agency, Moody’s has said.

While in 2016/17, a surplus of P1.12 billion was recorded, in the years preceding that financial period and after, the budget suffered large deficits. This year, the original forecast deficit of P3.6 billion is due to be higher, up to P5.1 billion due mostly to funding of Debswana mega-projects.

Government’s own projections are that the deficits would be erased by the 2021/22 financial year, with a surplus of P1.6 billion. However, in a research note on sub-Saharan Africa released this week, Moody’s said the elections would come to bear on the timelines for budget consolidation. The credit ratings and research agency said there was a possibility that “spending pressures ahead of elections may delay fiscal consolidation plans” in Botswana.

Editor's Comment
UDC's 100 Days: Please deliver your promises!

We duly congratulate them to have ousted the long ruling Botswana Democratic Party (BDP) from power. Prior to taking power from the BDP, the coalition had made several election promises that are credited for influencing change and swaying the people to vote in its favour.The party had made an undertaking, which its leader and President Duma Boko consistently bellowed in his campaign trail. These undertakings were promises that Batswana would be...

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