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
Botswana deserves ideal political leaders

This remains to be seen, particularly as opposite unity has been seeing its ups and downs. In 2012, three opposition parties namely the Botswana National Front (BNF), the Botswana Movement for Democracy (BMD), and the Botswana National Front (BNF) formed a political alliance under the Umbrella for Democratic Change (UDC). The Botswana Congress Party (BCP) would, after rebuffs, join the coalition in 2017.The promise made by the coalition to its...

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