|Overview : |
The objective of this component is to explore the availability of additional fiscal space to implement the national social protection framework in Botswana using the fiscal space diamond as the conceptual framework. To this extent, the analysis, which should entail development of macro-economic scenarios as well as some modest simulations, is expected to explore concrete opportunities for mobilizing additional domestic revenue and external assistance, improving efficiency and expenditure reprioritization as well as assess the scope for borrowing (both external and domestic). The analysis should generate context specific and implementable recommendations in the short (1-3 years) to the medium term (4-6 years).
The fiscal space diamond provides a framework for analysing fiscal space at national level by examining four sources of fiscal space: foreign grants, domestic revenue, sovereign debt, and efficiency improvements (WB/IMF Development Committee Interim Report, 2006).