Botswana’s budget deficit for 2025-26 is forecast at 7.6% of GDP, with proposals for a 1.5% tax hike on corporate income and top earners. The economy is expected to grow 3.3% in the upcoming fiscal year after a projected contraction in 2024-25, with inflation expected to remain within 3%-6%. Officials noted “the domestic economy remains subdued, impacted by the slump in diamonds and we find ourselves in a very tight fiscal space”.