Botswana’s budget deficit for the current financial year is projected to surge to 18.6 billion pula ($1.4 billion), or 6.7% of GDP, driven by a sharp decline in diamond revenues, according to draft estimates from the Finance Ministry. This marks a significant increase from the February forecast, which estimated the deficit at 8.7 billion pula, or 2.8% of GDP, alongside record spending of 102.3 billion pula.
Mineral revenues, traditionally contributing a third of the national budget, are now expected to fall to 8.7 billion pula, down from the earlier estimate of 25.2 billion pula. In response, the Finance Ministry has called for stricter spending controls, building on measures introduced in August.
While the government has not outlined how it plans to address the wider deficit, it has increased borrowing from local markets. Additionally, economic growth is anticipated to fall short of the earlier 4.2% projection, though a revised figure has not been provided.
Newly-elected President Duma Boko, who took office last month, has pledged a forensic audit of government spending under his predecessor, Mokgweetsi Masisi. Facing mounting pressure to fulfill campaign promises, Boko has committed to boosting pensions, student allowances, and other social programs.
