A World Bank report has discovered that many government finances of emerging and developing economies are in a fragile situation.
The report which provides an overview of global economic prospects for 2019, notes that these economies are faced with deteriorating debt dynamics and limited fiscal space.
“In some cases, much-needed reforms to improve fiscal space have either stalled or not been fully implemented,” the report says, going further to indicate that funding new or increasing liabilities, such as public-sector wage bill, have put further strain on domestic revenues.
Botswana is classified under the emerging and developing economies category and statistics indicate that it is also faced with the same predicament.
Under severe strain are major oil exporters as the resource is said to continue to face fiscal sustainability challenges owing to oil price volatility.
Meanwhile, the World Bank predicts the local economy to register growth of 3.9 percent in 209, down from 4.4 percent growth seen last year.
This growth is expected to be supported by mining activities and non-mining activities such as trade.