Botswana sharply reduces budget deficit forecast on revenue boost from central bank

GABORONE, Sept 22 (Reuters) – Botswana now expects a much smaller budget deficit this fiscal year thanks to higher-than-expected revenue from the central bank and measures to contain spending, Finance Minister Ndaba Gaolathe said on Tuesday.

Gaolathe told an investment conference that the projected deficit for the 12 months to the end of March 2027 was 9.26 billion pula ($646.35 million), or 3.1% of gross domestic product (GDP).

That compares with a deficit of 26.35 billion pula, or 8.9% of GDP, forecast in his February budget speech.

The improvement partly reflects an 8.1 billion pula upward revision to revenue, driven by a larger-than-expected transfer to government coffers from the Bank of Botswana.

“The final fiscal position will also depend on our ability to contain expenditure. That improvement is encouraging. It does not remove the structural fiscal pressures we still have to address,” Gaolathe said.