Rolling deficits push budget into tricky waters

Friday, February 28, 2025 | 380 Views |

Mountains to climb, rivers to cross: Gaolathe is steering the economy through choppy waters PIC: KENNEDY RAMOKONE

The deficits for the current financial year and the next are both far beyond the limits government set for itself. The Finance Ministry is banking on greater spending efficiencies backed by renewed political will to steer a path to stability, but fears abound. MBONGENI MGUNI writes

The golden rule of debt is that you should only borrow what you can afford to pay. One of the country’s financial regulators requires lending institutions to warn clients that “borrowing more than you can afford to repay could lead to severe financial difficulties”.

Vice President and Finance Minister, Ndaba Gaolathe’s inaugural budget speech indicated a forecast deficit this financial year of P24.7 billion and another projected shortfall of P22.1 billion for the 2025-26 financial year.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

ECONOMY

BOTEPCO hosted the first-ever Africa Teaching and Regulatory Authorities (AFTRA) conference. PIC.KINGSLEY KUDA

Gaborone hosts landmark continental education summit

Kingsley Kuda | 6 h ago

Mmegi sports journalist gets global recognition

staff writer | 8 h ago

Cowpeas worth P15m rot in silo

Mbongeni Mguni | 9 h ago

Every child is precious

TUDUETSO KELAPILE | 11 h ago

Union leaders fire salvos at Boko

Goitsemodimo Kaelo | 1d ago

We aren't backtracking on ConCourt – Boko

Goitsemodimo Kaelo | 1d ago

Alcohol not an excuse for murder, rules Kebonang

Pini Bothoko | 1d ago

High Court throws out bidder for 'skipping' Tribunal

Innocent Selatlhwa | 1d ago

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...

The Monitor Editor | 05 May 2026

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.