Tread softly towards budget surplus, IMF urges Botswana

Remarks on Wednesday by visiting IMF deputy managing director, Tao Zhang and his Botswana mission chief Papa N’Diaye appeared to strike a softer tone from the line the institution took in November after its annual assessment.  At the time, the IMF had urged local fiscal authorities to adopt measures “beyond those currently considered” in order to start fiscal consolidation in the 2020-2021 financial year. The first three years of NDP 11 have incurred cumulative deficits totalling P18.79 billion, whose funding through drawdowns on reserves and domestic debt, have raised concern about the erosion of buffers and fiscal stability.

Finance minister, Thapelo Matsheka announced a further P5.22 billion deficit in his budget speech on Monday, stressing government’s commitment to “rigorous fiscal consolidation measures” going forward.