Weakening fiscus expected to raise gov't debt appetite

Batane Matekane PIC: KENNEDY RAMOKONE
Batane Matekane PIC: KENNEDY RAMOKONE

Officials from the Ministry of Finance (MOF) anticipate that limited capital inflows into government coffers will compel the government to seek additional debt from various financial instruments.

In their presentation of the budget statutory paper to Parliament members, officials disclosed that the expected high deficit for the 2024–2025 financial budget may lead to a reassessment of debt ceilings and an increased reliance on borrowing to finance budget shortfalls.

Batane Matekane, the director of Macroeconomic Policy at MOF, explained that the financial pressure from implementing government initiatives like the Transitional National Development Plan (TNDP) will create a significant gap between government earnings and budgetary costs, necessitating financing through borrowing.

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