Botswana’s public investment has been consistently high for the past 25 years coupled with prudent fiscal policy and moderate debt at around 10 percent of GDP. Prudent management of public finances has allowed enough fiscal space for public investment at levels––of around 11 percent of GDP—which has outpaced peer countries and emerging market economies. Although capital spending is primarily funded through domestic sources––more than 90 percent of the total investment budget—the level of spending is somewhat volatile from year to year. Execution of the capital budget used to be volatile, but has been improving recently—execution ranges between 73 and 97 percent.
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