Umbrella for Democratic Change (UDC) vice president, Ndaba Gaolathe has decried that Botswana faces a huge budget deficit and debt, which will consequently limit the development of the economy and government’s ability to invest.
According to Gaolathe, the money that Botswana intends to spend this financial year exceeds revenue generation by P19 billion, leading to a deficit this financial year.
Giving a public lecture on the country’s economy in Chobe this week, Gaolathe noted that Botswana was commonly known for managing its finances well with its revenue amounting to as high as P18 billion, P20 billion and P23 billion in the past years. He lamented that the country currently is seating at P5 billion.
According to him, the country would therefore need to borrow P19 billion to cover the gap between its spending and revenue from taxes and other sources.
He however warned that borrowing money internationally may portray Botswana as an irresponsible country leading to investors losing confidence in its economy as they avoid countries with high debts.
Gaolathe added that should Botswana manage to borrow the P19 billion from other countries, it may also be difficult to return the money, citing that the debt would result in high interest payments and lower revenue the following financial year.
“Botswana has plenty of resources but it is facing deficit. Our country used to be well known for managing its finances wisely but now we are facing debts, we are expecting deficit this year as our spending exceed the revenue generated,’’ he said.
Meanwhile, when launching their Chobe parliamentary candidate, Victor Liwena the following day, Gaolathe promised that should UDC win elections, their intentions is to address the issue of budget deficits by diversifying Botswana’s economy and creating more job opportunities through industrialisation.
He highlighted that more than 25% of Botswana’s population is currently unemployed and those employed earn less salaries that cannot sustain their families. Ndaba is of the view that industries like manufacturing, agriculture and tourism needs to be developed as they have the potential to boost the country’s economy and create more employment opportunities.
For his part, Liwena pleaded with the community to vote him come October 30 so that he can address the issues of unemployment and poverty. He added that human wildlife conflict was one of the challenges facing his constituency, adding that there is need for deliberate strategies to address the issue.
