Three budget deficits in a row
Although government has recorded three successive budget deficits for the first three years of the National Development Plan (NDP) 11, observers note that the deficits are decreasing.
On Monday, Minister of Finance and Economic Development, Dr. Thapelo Matsheka delivered his maiden budget speech, painting a picture of how the national cake will be shared for the 2020/2021 financial period.
According to Matsheka – who doubles as a Member of Parliament for Lobatse – his budget speech responded to the need to transform the economy to a high-income status.
He announced that a budget deficit – when spending exceeds income – of P5.22 billion is projected, which represents 2.4 percent of the nation’s Gross Domestic Product (GDP).
Matsheka noted this marks a significant drop from the 3.9 percent deficit forecast for the previous financial year.
“It represents the first step towards a healthier fiscal position,” declared the Minister.
Speaking to Voice Money shortly after Matsheka’s speech, Chief Economist at First National Bank Botswana (FNBB) Moatlhodi Sebabole confirmed it is evident deficits are dropping.