Budget slowdown focuses on the wrong numbers

Friday, January 23, 2026 | 250 Views |

Tricky numbers: Gaolathe has said he wants to see a greater focus on capital investments and cutbacks on the recurrent budget PIC MORERI SEJAKGOMO

Budget outturn figures show that government has managed to restrain spending from P97.6 billion to P77.9 billion in 2025-26, with the adjustment falling most heavily on the development budget. While this headline reduction may suggest fiscal discipline, a closer look at the numbers reveals a worrying trend, writes TIMOTHY LEWANIKA

In line with progressive calls from different Bretton Woods institutions to slow spending and consolidate the fiscus, government has cut headline expenditure but the forgone opportunity appears to be investment in the country’s future.

The cuts suggest government continues to trim investment expenditure while protecting consumption, reinforcing a growth model that prioritises short-term stability over long-term wealth creation.

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