https://en.sputniknews.africa/20241205/botswanas-budget-deficit-to-more-than-double-due-to-diamond-revenue-drop-finance-ministry-says-1069560616.html
Botswana's Budget Deficit to More Than Double Due to Diamond Revenue Drop, Finance Ministry Says
Botswana's Budget Deficit to More Than Double Due to Diamond Revenue Drop, Finance Ministry Says
Sputnik Africa
The government expects further spending cuts to be needed to address the widening deficit, and while no financing plans have been specified, increased local... 05.12.2024, Sputnik Africa
2024-12-05T12:42+0100
2024-12-05T12:42+0100
2024-12-05T12:42+0100
sub-saharan africa
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Botswana's budget deficit is projected to more than double, largely due to falling diamond revenues, the country's Finance Ministry said in a draft 2025-2026 budget strategy paper.According to the draft budget, the deficit is expected to more than double to 18.6 billion pula ($1.4 billion) or 6.7% of GDP, a significant increase from the previously forecast deficit of 8.7 billion pula ($637.3 million).Economic growth is also expected to be lower than initially projected.
https://en.sputniknews.africa/20240917/sixth-diamond-over-1000-carats-unearthed-at-karowe-mine-in-botswana-1068308742.html
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economy, botswana, southern africa, finance, diamonds, budget, gdp, economic growth
economy, botswana, southern africa, finance, diamonds, budget, gdp, economic growth
Botswana's Budget Deficit to More Than Double Due to Diamond Revenue Drop, Finance Ministry Says
Alla Shukanova
Writer / Editor
The government expects further spending cuts to be needed to address the widening deficit, and while no financing plans have been specified, increased local borrowing is noted.
Botswana's budget deficit is projected to more than double, largely due to
falling diamond revenues, the country's Finance Ministry said in a draft 2025-2026 budget strategy paper.
"The weaker-than expected activities in the diamond market has put pressure on the fiscal revenues, particularly mineral revenue. To this end, the fiscal outturn in the 2024/2025 financial year [ending on March 31] is expected to be subdued, recording a much wider deficit than anticipated earlier in February 2024," the paper read.
According to the draft budget, the deficit is expected to more than double to 18.6 billion pula ($1.4 billion) or 6.7% of GDP, a significant increase from the previously forecast deficit of 8.7 billion pula ($637.3 million).
"The latest preliminary data shows that as at the end of September 2024, mineral revenue stood at 3.84 billion pula [$281.3 million] compared to an estimate of 12.59 billion pula [$922.2 million] in the original budget, representing an under collection of 8.75 billion pula [$640.9 million] or 69.5%," the ministry pointed out.
Economic growth is also expected to be lower than initially projected.
