World Bank Advises Botswana on Fiscal Reforms
The World Bank has suggested that Botswana implement significant fiscal adjustments. These recommendations aim to address the nation’s declining foreign currency inflows and governmental revenues.
Public Sector Wage Bill a Key Focus
Among the proposed measures is a reduction in the public sector wage bill. The Bank suggests linking this reduction to specific fiscal objectives. This could involve defining the wage bill as a percentage of total expenditures or as a share of the Gross Domestic Product (GDP).
Rethinking Government Spending
Further recommendations include decreasing government spending, particularly through reduced subsidies to state-owned enterprises. The Botswana Power Corporation (BPC) was specifically mentioned as an area where such reductions could be considered. These steps are presented as immediate options for achieving fiscal consolidation.
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