Africa Economy & Policy

Botswana Finance Ministry Begins Technical Meetings for the 2027 National Budget

Preparations start from a 2026/27 budget with an 8.9%-of-GDP deficit and debt heading above the 40% statutory ceiling.

By Tumisang Bogwasi August 5, 2026 2 min read

Officials at a Ministry of Finance Budget Technical Meeting in preparation for the 2027 National Budget, August 2026. Photo: Ministry of Finance

GABORONE, Botswana – Botswana’s Ministry of Finance has begun its annual Budget Technical Meetings, the first stage of preparing the 2027 National Budget, which will be presented to Parliament in February 2027, the ministry said on Wednesday, 5 August.

Highlights

The Ministry of Finance has started its annual Budget Technical Meetings for the 2027 National Budget.
The budget will be presented to Parliament in February 2027.
The current 2026/27 budget projects a P26.35 billion deficit, equal to 8.9% of GDP.
The IMF has urged an ambitious medium-term fiscal consolidation plan.

The ministry did not publish an agenda or timetable for the meetings, or say which ministries and agencies were taking part.

The starting point

The 2027 budget will be built on a stretched fiscal position. In the 2026/27 budget, presented on 9 February by Vice President and Minister of Finance Ndaba Gaolathe, government planned spending of P103.58 billion against revenue of P77.22 billion. That left a budget deficit of P26.35 billion, or 8.9% of GDP, Daily News reported.

“Total financial requirements are estimated at P22.3 billion, of which P18.6 billion remains unfinanced,” Gaolathe told Parliament.

He said public debt stood at P90.03 billion in December 2025. Including guarantees, it was projected to reach 44.66% of GDP by the end of 2026/27, above the statutory debt ceiling of 40% of GDP, which he said would need to be recalibrated.

Diamonds are no longer the anchor they were. Mineral revenue is budgeted at P12.21 billion for 2026/27, well below Southern African Customs Union receipts of P26.79 billion, according to KPMG’s summary of the budget. Brimco’s analysis of the 2026/27 budget covers the tax measures and the development spending plan.

The IMF’s view

When the IMF Executive Board concluded its 2025 Article IV consultation with Botswana on 19 November 2025, Directors urged the authorities “to adopt an ambitious medium-term fiscal consolidation plan to rebuild buffers and strengthen medium-term sustainability while protecting priority investment and social spending.”

They generally agreed that “a temporary, well-specified increase in the statutory debt ceiling tied to the consolidation plan and supporting structural reforms is warranted”. They also called for a broader tax base, a smaller public wage bill, better-targeted social benefits and stronger management of state-owned enterprises.

In July, President Duma Boko said Botswana’s economy must become private sector-led as the diamond downturn continues.

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Africa Economy & Policy

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Tumisang Bogwasi

Tumisang Bogwasi, Founder & CEO of Brimco. 2X Award-Winning Entrepreneur. It all started with a popsicle stand.