Presidential diplomatic trips, international ministerial engagements, conferences, and the famous “benchmarking” trips are the recent victims of an online campaign to make sure government lives within its means. For the many online spirited citizens, it is only fair that government toes the line of its “broke narrative” more so that it understands how dire the state of the coffers is compared to the economically uninitiated Jack and Jills of society.
Government employees have not enjoyed a significant salary hike for years whilst the downtrodden members of society have been asked to depend less on social security schemes because the State says it is broke. Likewise citizens feel like the suffering should be mutual, for better or worse.
Last year, Vice President cum Minister of Finance, Ndaba Gaolathe, in a sombre address to journalists on the dire state of the coffers, shared that the country was on the brink of a fiscal collapse. His address clearly intended to show that government was seriously “broke” unlike in previous administrations where the statement was used as a way of denying citizens their demands.
“What I can say is that the situation is bad, worse than what we had thought,” he said then.
“It is so bad that when I was talking with the President, I said ‘we have to start by decreasing his salary and mine for perhaps a year, in order to right the ship’.”
Funny enough, when the narrative permeated the circles of society causing widespread panic and anxiety which are known detractors to market performance, government turned around and said it is not broke, and that it is rather experiencing cash flow challenges.
In one of such instances, pressured by legislators to unpack on why the Bank of Botswana seemed to be speaking differently on the true state of the national purse, Gaolathe said that government was having revenue shocks as opposed to being “broke”.
“It is important to acknowledge that the revenue has been declining and this has affected the buffers and government operations,” he revealed.
The minister was responding to a question from Maun West legislator, Caterpillar Hikuama, who had asked about the performance of the economy and state of finances. Gaolathe, whose party won the 2024 General Election, was also quick to admit that the country has tight cash conditions.
He, however, assured Batswana that the fundamentals from which they can build a deep and robust economy are there. Gaolathe further admitted that they have some temporary cash flow problems and that in the long run, the government will hit the ground running.
In technical economics language the Vice President is right about the country not being broke, but he is unfortunately victim to a wrongly used expression by previous administrations. The idea that government is broke is something that has been tossed around a lot even when government was doing well. This has since cast aspersions of doubt amongst citizens even now as the country is actually edging closer and closer to a fiscal cliff.
It is not just citizens online who are demanding that government toes the line and act like it is broke. Legislators are also beginning to question the prudence of some public spending. Leader of Opposition, Dumelang Saleshando, recently called for the temporary suspension of Botswana Defence Force (BDF) Day and other ceremonial functions, citing the country’s economic challenges.
Speaking in Parliament, Saleshando urged the government to reconsider the allocation of resources to these events, which he argued were costly and unnecessary during difficult financial times. He emphasised the need for the government to focus on more urgent national issues, such as unemployment and poverty, rather than ceremonial activities.
“The country is facing a serious economic crisis, and it is important for government to take a closer look at spending on non-essential events. Ceremonial functions like BDF Day should be put on hold until we are in a better financial situation,” he said.
Saleshando also criticised the practice of BDF personnel lining up to bid farewell to the President at the airport during international trips, suggesting that it adds unnecessary costs to the already strained national budget. He expressed concern that these ceremonial costs could be better allocated to other areas that require more immediate attention.
“I believe there is a specific budget within the BDF for these activities. However, in these times of economic hardships, the government should reconsider such practices and redirect those funds to more pressing needs,” he added.
The government clearly, finds itself in a bind. By repeatedly citing financial limitations, it limits its ability to defend bold, necessary actions for the country’s future, such as economic diplomacy trips outside the country. For instance, bullish infrastructure development, education, and healthcare reforms are all long-term investments that require consistent funding. However, with the narrative of being “broke,” any push for increased spending in these areas is often met with resistance, as the public grows wary of rising debt or the mismanagement of funds.
Moreover, this narrative undermines the potential for economic diversification. Botswana’s future lies not just in diamonds, but in sectors like tourism, agriculture, and technology. However, when the government is viewed as incapable of managing its finances properly, it becomes harder to attract foreign investment or to encourage entrepreneurial ventures that could drive future growth.
Botswana’s government is not without challenges, but it is also not entirely “broke.” The country has substantial mineral resources, a relatively stable political environment, and a well-established financial sector. While the pandemic and global financial shifts have created difficulties, the government’s fiscal position, whilst under pressure, is not as dire as the “broke” narrative suggests.
Instead of focusing on an image of fiscal ruin, a more nuanced conversation is needed, one that acknowledges the difficulties whilst also recognising the country’s strengths and long-term potential.
This requires both government officials and the public to engage in responsible discussions about budgeting priorities, fiscal responsibility, and the need for growth and diversification in the economy.
