…Warns of Escalating Debt and Fiscal Mismanagement
Dumelang Saleshando, Leader of the Opposition in Botswana’s Parliament, delivered a sharp rebuttal to the 2026/2027 Budget Speech unveiled on Monday by Vice President and Minister of Finance, Ndaba Gaolathe. Saleshando condemned the budget as “bad economics,” cautioning that it threatens to deepen the nation’s debt burden and destabilize its financial standing.
In his detailed response to the fiscal proposals, Saleshando highlighted a troubling and widening gap between government expenditures and revenue streams. He warned that persistent budget deficits risk further downgrades to Botswana’s sovereign credit ratings, which could imperil the country’s economic future.
Reflecting on recent fiscal trends, Saleshando pointed to the last administration’s figures: total government revenue amounted to P69.9 billion, while spending soared to P81.6 billion, resulting in a deficit of P11.8 billion. Yet, he argued, the situation has deteriorated under the current government’s stewardship.
“In the 2025/2026 financial year, expenditure exceeded revenue by P25.5 billion. The proposed 2026/2027 budget indicates a further increase in the deficit, with projected expenditure surpassing revenue by P26.4 billion,” he stated emphatically.
Representing Maun North, Saleshando elaborated that the 2026/27 fiscal plan envisions a deficit of P26.35 billion accompanied by a financing gap of P18.6 billion. He underscored that such levels of government spending fail to acknowledge the economic realities the country faces, particularly amid ongoing structural declines in both the economy and government revenue.
“These budgets send the message that we are still struggling to adjust to the structural decline in the economy and government revenue,” he observed, emphasizing the need for fiscal prudence.
Saleshando’s concerns extended to Botswana’s sovereign creditworthiness. He cautioned that without stringent spending controls, the nation faces the real threat of further credit rating downgrades. In 2025, both Moody’s and Standard & Poor’s lowered Botswana’s sovereign credit ratings and signaled that continued fiscal imbalance could prompt additional downgrades.
Turning to the country’s rising debt levels, Saleshando highlighted a looming crisis: the debt-to-GDP ratio is forecasted to reach 44.66 percent, surpassing the statutory ceiling of 40 percent. He criticized the government’s reported intention to increase this legal debt limit to accommodate more borrowing, labeling the move as “fiscal recklessness disguised as necessity.”
On the revenue front, Saleshando challenged the narrative that Botswana’s fiscal woes stem solely from insufficient income. He argued that inefficiency, lax spending controls, and a lack of accountability are equally to blame.
“Botswana does not only have a revenue problem only we have an efficiency problem, a spending problem and an accountability problem,” he asserted.
The opposition leader called for urgent reforms in tax collection and the plugging of revenue leakages before entertaining any proposals to raise tax rates. He noted that Botswana’s tax-to-GDP ratio stands at a modest 13.4 percent, well below the Southern African Customs Union (SACU) average of 20.5 percent.
“Raising revenue must begin with fairness and effectiveness. Tax evasion has become a structural weakness in public finance,” Saleshando explained, urging a crackdown on tax avoidance.
He also singled out Value Added Tax (VAT) exemptions as a “silent drain” on government coffers, arguing that the sheer number of exemptions, some potentially unjustified, undermines fiscal health.
“We must ask difficult but necessary questions, including why certain private entities are exempt from VAT and who truly benefits from that. Why are diplomatic passport holders, including Members of Parliament, exempt from paying VAT?” he questioned pointedly.
In closing, Saleshando urged Parliament to demand full transparency regarding tax expenditures, conduct rigorous cost-benefit analyses of exemptions, and implement sunset clauses to ensure tax reliefs remain justified and temporary.
His critique paints a stark picture of a government grappling with fiscal realities but struggling to impose the discipline required to safeguard Botswana’s economic future.