Elections could stall budget balancing - Moody's

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.