Finance minister to unveil the 2017/2018 national budget
Monday, 6 February, 2017 - 07:45
Finance minister Kenneth Matambo is set to unveil the 2017/2018 national budget before parliament this afternoon.
This comes against the backdrop of a budget deficit of 3.8% of the Gross Domestic Product in the current fiscal year.
In the 2016/2017 budget, the government had to draw from its savings and borrow from both the domestic and foreign sources.
Despite initially optimistic projections, the domestic economy last year ended up with a negative growth of 0.3%, having been driven down by a 19.7% decline in mineral revenues, linked to weaker global demand, aggravated by drought and the challenges experienced in the water and energy sectors.
The government anticipates an overall domestic growth rate of 4.1% in 2017 from 3.5 percent in 2016. The focus will also be on the BCL mine which is about to placed under final liquidation.
In his speech in December last year, President Ian Khama said while the liquidation of the BCL mine will continue to have economic and social implications, it is anticipated that it will have limited direct impact in terms of exports, government revenues and overall growth.