Stimulus package could hurt economy � economists
Friday, October 30, 2015
Jefferis
In a recent economic review for the third quarter of 2015, analysts from Econsult Botswana, Keith Jefferis, Brandon Basele and Sethunya Sejoe argued that in some respects, the stimulus package could make things worse. The experts indicated that the real cause of slowing growth is not the absence of government spending, but a lack of competitiveness.
“Analysis of the likely impact of the stimulus package is difficult in the absence of information regarding its content, timing, magnitude and funding. However, indications are that it will be large, and will be implemented as soon as possible,” stated the economists in the review.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...