Mmegi

The budget panic focuses on the wrong numbers

Balancing act: Serame faces a stiff task guiding the budget back to stability while ensuring the broader economic imperatives are achieved PIC MORERI SEJAKGOMO
Balancing act: Serame faces a stiff task guiding the budget back to stability while ensuring the broader economic imperatives are achieved PIC MORERI SEJAKGOMO

The recent national outrage over declining government savings, belies a longer trend of declining budget revenues and slowing growth that predates the COVID pandemic. The recent debate has at least propelled a long-simmering crisis into the public sphere. MBONGENI MGUNI & TIMOTHY LEWANIKA write

No one who has been diligently following the fiscus for any reasonable amount of time, was taken aback by the screenshot that went viral on social media recently. The snapshot, taken from a recent economic update by Econsult, showed that the Government Investment Account (GIA), which represents government’s savings, had dropped from P19.1 billion in July 2023 to P5.1 billion in April 2024, “a drop of P14 billion in only nine months”.

“Clearly this rate of depletion is unsustainable,” researchers at Econsult, who include former deputy Bank of Botswana governor, Keith Jefferis, said in the update.

Editor's Comment
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...

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