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Stimulus desperately needed but unlikely – StanChart

Seeking relief: Gaolathe on Wednesday told legislators that the government’s financial situation remained highly strained
Seeking relief: Gaolathe on Wednesday told legislators that the government’s financial situation remained highly strained

As public spending continues to shrink and the economy battles for stability, economists believe the private sector needs a cash injection through a stimulus, but this remains highly unlikely as the holes in government’s pockets get bigger and bigger.

Government spending in the economy through issuance of government purchase orders (GPO) and procurement of goods and services from the private sector remains constricted as government tightens its belt in the wake of declining revenues.

Unveiling its latest economic outlook update on Wednesday, Standard Chartered Bank Botswana economists shared that ordinarily constrained government spending in the country would necessitate a stimulus response through massive cash injection to improve liquidity and spending in the economy.

Editor's Comment
Two-tier education system demands action

Whilst we join Botswana Sectors of Educators Trade Union (BOSETU) and other stakeholders in commending the rise in top grades, a testament to the unwavering effort of many teachers and pupils, this progress is fundamentally shadowed by a failing that shames our society. The stark, persistent urban-rural divide is not just a statistic, but an active betrayal of thousands of young Batswana.The figures are a damning indictment. When pass rates in...

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