The ratings on the Republic of Botswana are supported by the strength of the public sector's balance sheet. General government net external assets, estimated at about 102% of current account receipts in 2005, are among the highest recorded by rated sovereigns, bolstering the government's capacity to absorb potential shocks. Conversely, HIV/AIDS-related spending pressures (up to 3.0%-4.0% of GDP annually in additional health care and social spending) and stagnating mineral revenues represent growing fiscal challenges. Fiscal deficits since 2001-2002 have averaged about 2.6% of GDP, reversing the earlier trend of surplus budgets. In 2005-2006, the target of a small surplus may be within reach, largely due to the positive impact on revenues of the devaluation of the pula by 12.0% in
