Africa-Press – Namibia. THE Minister of Finance, Iipumbu Shiimi, has tabled the mid-year budget in which he announced the total finances to be allocated to ministries for the rest of the financial year amounts to N$2.2 billion.
Shiimi stated that limited fiscal space and subsequently safeguarding public debt sustainability emerged as the primary economic challenges which Namibia has to contend with in the near term. This situation warrants targeted policy interventions to reboot economic growth and employment creation, albeit with limited fiscal space.
“This Budget Review, as the one I tabled before you last year, centers on stabilising the medium-term macro-fiscal framework and reviving sustainable economic growth as the key pillars for long-term fiscal sustainability. Overall, a total of N$2.2 billion has been made available for reallocation across the Budget Votes. This is against total funding requests of N$7.1 billion received from offices, ministries and agencies during the review,” Shiimi said.
The Development Budget ceiling is reduced on a net basis by N$279.8 million, from N$5.5 billion to N$5.2 billion, while the non-interest Operational Budget is increased by N$2.2 billion, from N$53.9 billion to N$56.1 billion, and statutory expenditure is reduced marginally from N$8.5 billion in the main budget to N$8.3 billion.
The finance minister further explained that the reallocation of resources proposed above lifts the global expenditure ceiling for FY2021/22 from N$67.9 billion to N$69.7 billion.
“The proposed reallocations are primarily to address underbudgeting on personnel expenditure, utilities and other spending items across Budget Votes and to meet resource shortfalls at Health and Social Services as a result of the third wave of Covid-19,” Shiimi said.
He added that overall, the budget deficit will remain unchanged at 8.6% of the GDP, as was in the main budget, leaving the net borrowing requirement largely static.
The Ministry of Defence and Veteran Affairs is allocated N$477.1 million consisting of N$458 million to meet the funding shortfall on personnel expenditure and N$19.1 million for veterans expenditure.
The Ministry of Education, Arts and Culture and the Ministry of Health and Social Services were allocated the second-highest chunk of the budget, N$400 million, to cater for underbudgeting on personnel-related expenditure. The Ministry of Health and Social Services is allocated an additional N$400 million required to boost the Covid-19 response plan.
In addition, the Ministry of Gender Equality, Poverty Eradication and Social Welfare is allocated an amount of N$15.3 million to support the rollout of social grants, while the Ministry of Works and Transport is allocated N$89 million, apportioned as N$47 million to cover property rentals, N$34 million for rates and taxes, and N$5 million for personnel expenditure.
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