IMF probes credibility of Botswana budget

In a paper titled ‘Introducing a medium term framework’, released last week, the IMF says that revenues are persistently under-forecasted, with an average error of 3.6 percent of Gross Domestic Product (GDP), whilst expenditures usually under- perform, with an average error of 2.8 percent of GDP.

“These variances necessitate significant within year adjustments to the budget whilst excess revenues can create pressure for new spending requests to be financed.