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
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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