Time to stitch up a tattered fiscus :: Mmegi Online

With the country’s thebes and pulas falling through the tears of a tattered wallet, fiscal planners may need to re-consider spending priorities as market forces hamper the country’s revenue-raising ability. Government either has to be extremely creative in raising capital or face the dangers of running an expansionary budget amidst a diamond market crisis. Staff Writer, TIMOTHY LEWANIKA reports

A recent country report from the International Monetary Fund (IMF) forecasts that Botswana’s economy will face a growth deceleration this year, growing by only one percent compared to a previous estimate of 3.6 percent. This is mainly due to declining mineral revenues, particularly in the diamond sector.

“Botswana’s economic growth decelerated from 5.5 percent in 2022 to 2.7 percent in 2023, below the long-run potential growth of four percent,” said an IMF team in a report after a visit to the country.

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