Govt fights to avoid debt trap

Tuesday, January 27, 2026 | 140 Views |

BALANCING ACT: The Finance Ministry is juggling citizens’ aspirations and revenue forecasts

The Finance Ministry says it is redoubling its efforts to avoid a debt trap for the country, as revenues remain low, while the amount of borrowings and arrears owed by government to suppliers increases.

Without meaningful restrictions on spending, government faces an elevated risk of a debt trap over the short to medium term, said technocrats writing in the Budget Strategy Paper released last week.

The officials noted that the country’s fiscal trajectory was skirting close to the debt ceiling limits set by government. The government’s fiscal rules limit debt to 40% of Gross Domestic Product (GDP), being 20% for domestic debt and 20% for external debt.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

ECONOMY

Botswana pins economic hopes on new commercial court

Larona Makhaiza | 10 h ago

Selefu

Larona Makhaiza | 11 h ago

CCA settles with Hollard; case proceeds vs BIC, Old Mutual

Mbongeni Mguni | 17 h ago

Gaolathe engages Dangote

Mbongeni Mguni | 1d ago

Fresh audit exposes COVID spending chaos

Mbongeni Mguni | 2d ago

Selefu

joey kambai | 1d ago

DPP strengthens response to GBV cases

Mpho Mokwape | 1d ago

AAB marks 30 years with bold vision

Kabelo Boranabi | 2d ago

Justice delayed is trust denied

Batswana who marched peacefully for 'Justice for Tshepi' demanded answers. They have now received a detailed account of police investigation and a promise that the file is with the Directorate of Public Prosecutions (DPP). The real test is whether the state now keeps its word without further prodding. In his address, the minister asked the nation to trust the process. He spoke of rigour, not neglect, and pointed to 10 months of...

The Monitor Editor | 28 April 2026

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.

Govt fights to avoid debt trap

The Finance Ministry says it is redoubling its efforts to avoid a debt trap for the country, as revenues remain low, while the amount of borrowings and arrears owed by government to suppliers increases.

Explore

More

Botswana pins economic hopes on new commercial court

Selefu

CCA settles with Hollard; case proceeds vs BIC, Old Mutual

Gaolathe engages Dangote

Fresh audit exposes COVID spending chaos

Selefu

DPP strengthens response to GBV cases

AAB marks 30 years with bold vision

Justice delayed is trust denied