Diamonds Are Not Forever : Botswana Medium-term Fiscal Sustainability

Kojo, Naoko C.

dc.creator	Kojo, Naoko C.
dc.date	2012-03-19T18:42:55Z
dc.date	2012-03-19T18:42:55Z
dc.date	2010-11-01
dc.date.accessioned	2023-02-17T21:06:42Z
dc.date.available	2023-02-17T21:06:42Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101116090208
dc.identifier	http://hdl.handle.net/10986/3962
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244932
dc.description	This paper analyzes Botswana's medium-term fiscal sustainability in view of the expected depletion of diamonds in the future. The analysis shows that in the absence of policy adjustments, Botswana's current fiscal policy strategy is unsustainable over the longer term, which could endanger macroeconomic stability and Botswana's reputation as Africa's success story. Ensuring medium-term sustainability of Botswana's public finances requires stronger revenue collection, through improved revenue administration, greater tax enforcement, and the rationalization of tax exemptions in order to realize the full revenue potential. Opportunities also exist to generate more revenue from the non-mining sector through changes in the tax regime. At the same time, the government needs to maximize the effectiveness of public expenditure and bring down public spending to levels that are more in line with long-term revenue prospects. A greater control over the public sector wage bill is critically important. In-house capacity for macroeconomic monitoring and fiscal analysis also needs to be enhanced further. Looking ahead, growth of a dynamic non-mining sector is crucial for Botswana not only from the fiscal sustainability point of view, but from the point of view of achieving balanced development that will create jobs and deliver durable reduction in poverty and inequality. Fiscal policy will have to play a central role in this process.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5480
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ACCOUNTING FRAMEWORK
dc.subject	ADVERSE IMPACTS
dc.subject	AGRICULTURE
dc.subject	AMORTIZATION
dc.subject	ANNUAL REPORT
dc.subject	ANNUAL REPORTS
dc.subject	APPROPRIATION
dc.subject	ARREARS
dc.subject	BANK FINANCING
dc.subject	BASELINE SCENARIO
dc.subject	BENCHMARK
dc.subject	BID
dc.subject	BOND
dc.subject	BONDS
dc.subject	BORROWING COST
dc.subject	BORROWING PLAN
dc.subject	BORROWING STRATEGY
dc.subject	BUDGET DEFICIT
dc.subject	BUDGET MANAGEMENT
dc.subject	BUDGET POLICY
dc.subject	BUDGET POLICY STATEMENT
dc.subject	BUDGET REVIEW
dc.subject	BUDGET SUPPORT
dc.subject	BUDGETING
dc.subject	CAPACITY CONSTRAINTS
dc.subject	CAPITAL EXPENDITURE
dc.subject	CASH BALANCE
dc.subject	CASH BALANCES
dc.subject	CENTRAL BANK
dc.subject	CENTRAL GOVERNMENT
dc.subject	CIVIL SERVANTS
dc.subject	COMMODITY PRICE
dc.subject	COMMODITY PRICES
dc.subject	COMPUTABLE GENERAL EQUILIBRIUM
dc.subject	CONTINGENT LIABILITIES
dc.subject	CONTRACTUAL OBLIGATIONS
dc.subject	CORPORATE INCOME TAX
dc.subject	CORPORATE TAX RATE
dc.subject	COST OF GOVERNMENT
dc.subject	COUNTRY RISKS
dc.subject	CREDITOR
dc.subject	CREDITORS
dc.subject	CURRENCY
dc.subject	DEBT
dc.subject	DEBT RATIO
dc.subject	DEBT RATIOS
dc.subject	DEBT REPUDIATION
dc.subject	DEBT SERVICE
dc.subject	DEBT SERVICES
dc.subject	DEBTOR
dc.subject	DEFICIT FINANCING
dc.subject	DEVELOPMENT BANK
dc.subject	DISBURSEMENT
dc.subject	DIVIDENDS
dc.subject	DOMESTIC BORROWING
dc.subject	DOMESTIC DEBT
dc.subject	DOMESTIC DEBTS
dc.subject	DOMESTIC DEMAND
dc.subject	DOMESTIC INTEREST RATE
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC REVENUE
dc.subject	DURABLE
dc.subject	ECONOMIC CLASSIFICATION
dc.subject	ECONOMIC CONDITIONS
dc.subject	ECONOMIC FEASIBILITY
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC POLICY
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATES
dc.subject	EXPECTED RETURNS
dc.subject	EXPENDITURE
dc.subject	EXPENDITURE CUTS
dc.subject	EXPENDITURES
dc.subject	EXPORTS
dc.subject	EXTERNAL BORROWING
dc.subject	EXTERNAL DEBT
dc.subject	EXTERNAL SHOCKS
dc.subject	FINANCIAL PROGRAMMING
dc.subject	FINANCIAL RESOURCES
dc.subject	FISCAL ANALYSIS
dc.subject	FISCAL BALANCE
dc.subject	FISCAL DEFICIT
dc.subject	FISCAL DEFICITS
dc.subject	FISCAL DISCIPLINE
dc.subject	FISCAL FRAMEWORK
dc.subject	FISCAL OUTCOMES
dc.subject	FISCAL POLICIES
dc.subject	FISCAL POLICY
dc.subject	FISCAL POSITION
dc.subject	FISCAL PROJECTIONS
dc.subject	FISCAL REVENUE
dc.subject	FISCAL RULES
dc.subject	FISCAL SAVINGS
dc.subject	FISCAL STANCE
dc.subject	FISCAL STRATEGIES
dc.subject	FISCAL STRATEGY
dc.subject	FISCAL SUSTAINABILITY
dc.subject	FOREIGN DEBT
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN GRANTS
dc.subject	GDP
dc.subject	GLOBAL ECONOMY
dc.subject	GOVERNMENT BONDS
dc.subject	GOVERNMENT DEBT
dc.subject	GOVERNMENT EXPENDITURE
dc.subject	GOVERNMENT EXPENDITURES
dc.subject	GOVERNMENT INVESTMENT
dc.subject	GOVERNMENT REVENUE
dc.subject	GOVERNMENT SPENDING
dc.subject	GROWTH PROJECTIONS
dc.subject	GROWTH RATE
dc.subject	HEALTH OUTCOMES
dc.subject	HUMAN CAPITAL
dc.subject	HUMAN DEVELOPMENT
dc.subject	INCOME INSTRUMENTS
dc.subject	INCOME LEVEL
dc.subject	INCOME TAX
dc.subject	INFLATION
dc.subject	INFLATION RATE
dc.subject	INFRASTRUCTURE PROJECTS
dc.subject	INHERITANCE
dc.subject	INSURANCE
dc.subject	INTEREST PAYMENT
dc.subject	INTEREST PAYMENTS
dc.subject	INTEREST RATE
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL CAPITAL
dc.subject	INTERNATIONAL CAPITAL MARKETS
dc.subject	INTERNATIONAL TRANSACTIONS
dc.subject	INVENTORY
dc.subject	INVESTMENT ACCOUNT
dc.subject	INVESTMENT EXPENDITURE
dc.subject	INVESTMENT FUND
dc.subject	INVESTMENT POLICY
dc.subject	INVESTMENT PROJECTS
dc.subject	INVESTMENT RETURN
dc.subject	INVESTMENT SPENDING
dc.subject	INVESTMENT VEHICLE
dc.subject	ISSUANCE
dc.subject	ISSUANCE OF GOVERNMENT SECURITIES
dc.subject	LEGAL FRAMEWORK
dc.subject	LIABILITY
dc.subject	LIQUIDITY
dc.subject	LIVING ADJUSTMENT
dc.subject	LIVING STANDARD
dc.subject	LOAN
dc.subject	LOAN GUARANTEE
dc.subject	LONG-TERM ASSETS
dc.subject	LONG-TERM INSTRUMENTS
dc.subject	MACROECONOMIC DATA
dc.subject	MACROECONOMIC INDICATORS
dc.subject	MACROECONOMIC MODEL
dc.subject	MACROECONOMIC STABILITY
dc.subject	MATURITY
dc.subject	MEDIUM-TERM PROJECTION
dc.subject	MEDIUM-TERM PROJECTIONS
dc.subject	MID-TERM REVIEW
dc.subject	MIDDLE INCOME COUNTRY
dc.subject	MINISTRY OF FINANCE
dc.subject	NATIONAL ACCOUNTS
dc.subject	NATIONAL DEVELOPMENT
dc.subject	NATIONAL DEVELOPMENT PLAN
dc.subject	NATIONAL INCOME
dc.subject	NDP
dc.subject	NET DEBT
dc.subject	NET LENDING
dc.subject	NOMINAL INTEREST RATE
dc.subject	OUTSTANDING LOANS
dc.subject	PENSION
dc.subject	PER CAPITA INCOME
dc.subject	PERSONAL INCOME
dc.subject	PORTFOLIO
dc.subject	PORTFOLIOS
dc.subject	POVERTY REDUCTION
dc.subject	PRICE INDICES
dc.subject	PRICE STABILITY
dc.subject	PRINCIPAL REPAYMENTS
dc.subject	PRIVATE INVESTMENT
dc.subject	PRIVATE SECTOR
dc.subject	PRODUCTION COSTS
dc.subject	PROGRAMS
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC EXPENDITURE
dc.subject	PUBLIC EXPENDITURE REVIEW
dc.subject	PUBLIC FINANCES
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SPENDING
dc.subject	REAL GDP
dc.subject	REAL GROWTH
dc.subject	REAL GROWTH RATE
dc.subject	RECURRENT EXPENDITURE
dc.subject	RECURRENT EXPENDITURES
dc.subject	REPAYMENT
dc.subject	RESERVE
dc.subject	RESERVES
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	REVENUE POLICY
dc.subject	REVENUE SHARING
dc.subject	SAVINGS
dc.subject	SHORT-TERM DEBT
dc.subject	SOLVENCY
dc.subject	STABLE FISCAL POLICY
dc.subject	STATUTORY DEBT LIMIT
dc.subject	SUSTAINABILITY ANALYSIS
dc.subject	SUSTAINABLE FISCAL POLICY
dc.subject	TAX
dc.subject	TAX EXEMPTIONS
dc.subject	TAX POLICY
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REGIME
dc.subject	TAX REVENUE
dc.subject	TAX ROYALTIES
dc.subject	TAX SYSTEM
dc.subject	TAXATION
dc.subject	TOTAL DEBT
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADE LIBERALIZATIONS
dc.subject	TRADING
dc.subject	TREASURY
dc.subject	TREASURY BILLS
dc.subject	UNEMPLOYMENT
dc.subject	VALUE ADDED
dc.subject	WAGES
dc.subject	WEALTH
dc.subject	WITHDRAWAL
dc.title	Diamonds Are Not Forever : Botswana Medium-term Fiscal Sustainability
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Africa
dc.coverage	Africa
dc.coverage	Sub-Saharan Africa
dc.coverage	Southern Africa
dc.coverage	Botswana