The Ministry of Finance has announced an immediate suspension of Government Purchase Order (GPO) generation from the Government Accounting & Budgeting System (GABS) due to severe liquidity challenges. The decision, effective from Monday, July 14, 2025, to July 31, 2025, comes as the government grapples with dwindling revenue inflows, primarily driven by a sharp decline in diamond sales, Botswana’s key revenue source.
The Ministry of Finance, in a circular issued to all Ministries, Departments, and Agencies (MDAs), said despite repeated warnings to curb spending, public expenditure has continued to rise, worsening the fiscal crisis. The government has relied heavily on borrowing to cover operational costs, including salaries, social benefits, and debt servicing—a strategy deemed unsustainable. Recent loans totaling BWP 8.3 billion from the Botswana Public Officers Pension Fund (BPOPF) and the Bank of Botswana were exhausted within a week, primarily allocated to recurrent expenditures rather than job-creating development projects.
To enforce fiscal discipline, the Ministry has imposed a total ban on both electronic and manual GPO processing during the suspension period. Exceptions will only be granted under strict approval by the Ministry’s Permanent Secretary. The Ministry urged all MDAs to adhere to the directive, emphasizing that unchecked spending risks deepening Botswana’s financial instability. The suspension aims to reassess expenditure priorities and redirect funds toward sustainable economic growth.
