## Structural Reforms to Support Fiscal Consolidation

_Selected Issues Papers, December 30, 2025_

## Source details

**Canonical URL:** [Structural Reforms to Support Fiscal Consolidation](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/30/structural-reforms-to-support-fiscal-consolidation-572960)

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## Bibliographic details
- Authors: Alexis Mayer Cirkel
- Published: December 30, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229035415.018

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### Summary
- Botswana faces growing fiscal challenges driven by declining diamond revenues, rigid expenditure, and weakened fiscal institutions, contributing to elevated fiscal deficits and rising public debt.
- The Selected Issues Paper draws on recent IMF technical assistance—including TADAT, PIMA, and Financial Reporting Framework assessments—to summarize priority structural fiscal reforms to support fiscal consolidation.
- Recommendations focus on strengthening tax administration, improving budget preparation and execution, enhancing transparency, and raising the efficiency of public investment.
- Together, these reforms aim to restore fiscal sustainability, reinforce institutional credibility, and help Botswana adapt to a more constrained economic environment while protecting long-term development objectives.

### Key challenges identified
- Declining diamond revenues.
- Rigid expenditure.
- Weakened fiscal institutions.
- Elevated fiscal deficits and rising public debt.
- Need to safeguard fiscal and external sustainability.

### Priority structural reforms (focus areas)
- Strengthen tax administration (draws on TADAT findings).
- Improve budget preparation and execution (draws on PIMA findings).
- Enhance transparency (draws on Financial Reporting Framework assessments).
- Raise the efficiency of public investment.

### Expected objectives and outcomes
- Restore fiscal sustainability.
- Reinforce institutional credibility.
- Help Botswana adapt to a more constrained economic environment.
- Protect long-term development objectives.

*Source: Structural Reforms to Support Fiscal Consolidation, Selected Issues Paper*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/30/structural-reforms-to-support-fiscal-consolidation-572960_