The government is implementing measures to reduce recurrent spending and restore fiscal stability as public debt approaches P100 billion.
These measures include restricting various allowances and revising social programs to focus on deserving beneficiaries. The aim is to trim the budget deficit, slow government borrowing, and prevent a debt crisis. Public debt currently stands at P92.7 billion and is projected to exceed P100 billion by the end of the financial year, representing about 44% of Gross Domestic Product.
Although Parliament approved borrowing up to 60% of GDP, the Ministry of Finance and World Bank experts have cautioned that slow economic growth and uncertainty in the diamond sector could lead to a debt crisis.
This summary was AI-generated from a story originally published by Mmegi.
A free daily or weekly digest of the stories that matter from 18 African countries. No spam, unsubscribe any time.
The requested page on the Mmegi Online website, which was expected to contain an article titled "Batswana flood DCEC to report corruption," resulted in a "404 The page you're looking for does not exist!" error. Mmegi is described as a leading independent source for news, current affairs, politics, business, sport, analysis, and entertainment in Botswana.
The requested page on the Mmegi Online website, which was expected to contain an article titled "We are investigating Magosi -DCEC", could not be found. The website displayed a "404 The page you're looking for does not exist!" error message.
The Ministry of Finance recently briefed the Cabinet on the latest reforms concerning State-Owned Entities SOEs. These government-owned companies and entities consume billions in taxpayer money annually, ostensibly for essential service delivery and opportunities. Despite various reform efforts since the 1990s, when their establishment accelerated, parastatals have largely failed to become efficient, even though they hold legislation-backed monopolies in critical sectors like electricity, rail, and aviation. The 64 parastatals are categorized as commercial, expected to operate profitably, or non-commercial, which depend entirely on government support for their existence.