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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
A promising step for public schools, but...

For too long, the state of many public schools has been a source of shame. We have all seen the pictures and heard the stories of broken windows, unreliable water and electricity, topped by classrooms that are not fit for proper learning. The establishment of the Education Infrastructure and Management Company Ltd (EIMC) signals that authorities are finally ready to take this problem seriously. We must commend the government for this initiative....

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