Botswana’s Finance Ministry has forecast the budget deficit to widen after the government agreed to a P1.8bn (US$139m) relief plan to help millions of households struggling due to rising inflation.
The deficit is estimated to increase to P7.7bn in the fiscal year through March 2023 from a previous estimate of P7bn due to an expected decline in some revenue items and higher expenditure. According to the Ministry, “higher borrowing costs will add to government spending and increase fiscal pressures when there is an urgent need to replenish the financial buffers.” Botswana last recorded a budget surplus in the fiscal year through 2017 and has since been running down its savings and ramping up domestic borrowings to cover its deficits.
