Africa-Press – Namibia. Finance minister Ericah Shafudah has poured cold water on proposals to increase the old age pension to N$5000 per month.
She cited fiscal constraints and the need for sustainable spending.
Speaking in the National Assembly last Wednesday, Shafudah responded to National Democratic Party (NDP) leader Martin Lukato. Lukato in his maiden parliamentary address last week called for a significant increase in pension grants.
He argued that the previously-proposed N$3 000 is still insufficient to cover the essential needs of the country’s elderly for the next two fiscal years.
“We are cognisant of the fact that the old -age pension is a critical source of income for the most vulnerable members of our community,” said Shafudah.
“As such, we are in full agreement that further considerations could be made. Nonetheless, we believe this could be done gradually as the government revenue improves over time,” she added.
Shafudah said increasing the pension grant to between N$2 000 and N$3000 alone would already place a significant financial strain on the national budget.
This will potentially raise government expenditure by an additional N$5.2 billion annually, bringing the total to N$10.1 billion. “This is equivalent to the allocation made to the Ministry of Health and Social Services in the 2024/25 financial year, and about 60% of the allocation to the Ministry of Basic Education and Culture,” she juxtaposed.
The finance minister affirmed that while the government remains committed to supporting senior citizens, the proposed N$5 000 increment is unaffordable at present. “Such a request will be considered only as government revenues improve over time,” Shafudah maintained.
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