Mmegi

Analysis paralysis and the approaching fiscal storm

Raising the alarm: Mogae was amongst the earliest Finance Ministers to signal serious concerns about the undiversified economy
Raising the alarm: Mogae was amongst the earliest Finance Ministers to signal serious concerns about the undiversified economy

The country’s weakened fiscal position, seen in delayed payments and salaries, rising public debt as well as a liquidity crunch, comes after decades of policymakers knowing all the solutions but failing to accelerate reforms quickly enough. Staff Writer, MBONGENI MGUNI reports

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.

Editor's Comment
Don't let FMD outbreak drag on

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...

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