Budget deficits expose Botswana to credit rating downgrade

Matambo sees expenditure outweighing revenues for the next three years
Matambo sees expenditure outweighing revenues for the next three years

Analysts fear international ratings agency, Standards and Poor’s (S&P) might this month downgrade Botswana’s sovereign credit ranking due to the country’s widening budget deficits that have potential to deplete government savings in the Pula Fund.

The Budget Strategy Paper for the 2018/19 financial year projects the budget deficit for the current financial year to increase from P2.35 billion announced by Finance Minister, Kenneth Matambo in February to P6.5 billion. 

The deficit is seen widening to P8 billion in the next financial year leading to cumulative budget gap of P15 billion by 2020, a development that is contrary to government’s commitment in NDP 11 to reign in budget deficits.

Editor's Comment
The corrupt must be punished

The findings reveal a disturbing pattern of misconduct and lack of transparency that cannot be ignored.The Tribunal, led by Judge President Justice Kabelo Lebotse, has rightly condemned the Ministry for its eyebrow raising conduct in awarding a P1.8 billion water tender to China Civil Engineering Construction Corporation (Pty) Ltd and Zhong Gan Engineering & Construction Corporation (Pty) Ltd.The award was made despite alleged clear evidence that...

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