Government’s savings, as housed in the Government Investment Account (GIA) managed by the Bank of Botswana, reached P6.5 billion in July, after reaching a post-pandemic low of P2.8 billion in June.
The central bank’s latest figures indicate that the GIA in July was at its strongest position since March when it was estimated at P7.2 billion.
While the Bank of Botswana statistical report did not give reasons for the improved GIA performance in July, Finance ministry officials have explained that the account rises and falls in line with government spending requirements throughout the year. Finance Minister Peggy Serame recently told Parliament that the steep drop in the GIA from P10.4 billion at the end of February to P5.4 billion at the end of April was due to recurrent and development funding commitments across the government required at the beginning of the financial year.
The GIA has been weaker in recent years, as government has generally run persistent budgets since the 2017–2018 financial year. By July last year, the GIA was measured at P19.1 billion, but the downturn in diamond demand, as well as higher government spending requirements, has meant the Finance ministry is dipping more into the savings account.
