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Gov’t revisits ‘tighter’ fiscal rule as deficits persist

Balancing act: Serame’s budget postponed the return to fiscal stability and prolonged the deficits treasury has contended with since 2017–18 PIC: PHATSIMO KAPENG
Balancing act: Serame’s budget postponed the return to fiscal stability and prolonged the deficits treasury has contended with since 2017–18 PIC: PHATSIMO KAPENG

The Finance ministry is revisiting a fiscal rule under which future recurrent budgets would be solely funded from non-mining revenues, while 60% of the country’s mineral earnings would be reserved for projects and skills development, BusinessWeek has learnt.

Under the rule, 40% of mineral revenues in any particular financial year would be saved for future generations, through investment in the Pula Fund managed by the Bank of Botswana.

The budget has been running deficits since 2017–18, peaking at P16.4 billion during the pandemic. This has eroded government savings and increased its debt pile while forcing Batswana to pay higher taxes, levies and others.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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