Analysis paralysis and the approaching fiscal storm
Friday, May 23, 2025 | 1370 Views |
Raising the alarm: Mogae was amongst the earliest Finance Ministers to signal serious concerns about the undiversified economy
The gap between knowing what to do and doing it, has been the proverbial thorn in the side of public sector policymakers and the reforms they have attempted to make over the decades since the discovery of diamonds.
For those tracking the numbers, the current fiscal challenge is not about the past months. The fiscal crisis now manifesting in reports of government delaying to settle some payments, parastatals postponing paydays for employees and rising public debt, can be seen as far back as a decade ago, when mineral revenues entered a downward slide.
Acting Agriculture Minister, Edwin Dikoloti, is right in saying opening an export-ready facility whilst Foot and Mouth Disease (FMD) is still spreading would risk getting the whole country blacklisted before a single carcass leaves the door.A ban like that would break the already stressed nation. So, the postponement, painful as it is, is the right thing to do. The local economy is being squeezed from both ends. FMD has already slammed the door...