Long-delayed fiscal reforms become unavoidable

Those charged with managing the national purse say the space for delaying reforms which include reducing the civil service wage bill, rationalising parastatals and plugging leakages in public finances, has run out. A possible global slowdown, with effects similar to the 2008 shock, is part of several driving forces. Staff Writers, MBONGENI MGUNI & PAULINE DIKUELO report

The US Federal Reserve on Tuesday evening raised interest rates in that country by another 75 basis points, the fifth such decision this year for the world’s single most important central bank. While the increase was expected, the comments by Federal Reserve chairman, Jerome Powell, were ominous, particularly for countries such as Botswana for whom the health of the US economy is directly tied to the performance of the budget.