Africa-Press – Namibia. THE Ministry of Urban and Rural Development is one of the biggest losers in the national budget tabled last week – losing around N$243 million compared to last year’s budget allocation.
This is contained in the N$70,9 billion national budget tabled by the minister of finance, Iipumbu Shiimi, in parliament last week. In total, ministries such as those of urban and rural development, justice and public enterprises suffered budget cuts worth N$500 million.
Other losers are the Namibia Statistics Agency (NSA) and the National Planning Commission which had to cancel the population census that was slated for this year.
The ministries of agriculture, water and land reform, and of sport, as well as the Electoral Commission of Namibia, emerged as slight winners with a combined increase of around N$243 million since last year.
These increases, however, appear to be inflationary. To Popular Democratic Movement president McHenry Venaani, reducing local authority funding is unacceptable.
“Your lifeblood of your urban populations are local authorities, for them losing so much money in the budget is a serious concern,” he said this week.
He said he suspected that the reduction is politically motivated. Shiimi’s budget theme was ‘Reimaging, a Better Future for the Youth’. Venaani said the budget is, however, not pro-youth.
“No strong determination for skills development, youth venture capital, or access to loans […] How are you addressing their unemployment?” he asked.
Simonis Storm Securities analyst Theo Klein this week said the finance minister’s growth strategy will attempt to capitalise on the youth population, which is expected to grow by 7,7% to one million by 2027.
Here are some of the notable losers and winners of this year’s national budget: LOSERS •LOCAL GOVERNMENT AND HOUSING The Ministry of Finance has once again chopped the urban and rural development ministry budget by N$243 million, to N$1,3 billion – despite widespread concerns over the shortage of houses and land.
The National Housing Enterprise, the Shack Dwellers Federation of Namibia, the mass housing programme, and the Build Together programme are allocated N$40,5 million in the budget, for the 2022/23 financial year.
Around N$814 million is set aside for local authorities in the budget, which is an increase compared to last year’s N$785 million. • JUSTICE The Ministry of Justice’s budget is being cut by N$43 million, with the Office of the Prosecutor General’s budget cut by N$43 million to N$446 million.
This reduction comes a year after the justice ministry said a lack of funds has forced it to divert funds meant to enforce the whistleblowers’ protection bill.
Last year, justice minister Yvonne Dausab said the total amount needed for the full implementation of a witness protection programme is approximately N$160 million per year.
• CENSUS The population census has been called off due to a lack of money, with the NSA being allocated some N$94,3 million.
• INFRASTRUCTURE Shiimi said the state has decided that no new infrastructure projects would be undertaken during the 2022/23 financial year.
The N$4,9 billion development budget will most likely only be extended to projects already in progress and renovations. Rally for Democracy and Progress president Mike Kavekotora this week said the economy will suffer.
“When the economy suffers, unemployment goes up,” he said. WINNERS • DEFENCE
Budget documents show the Ministry of Defence and Veterans Affairs received N$5,8 billion for the year for defence, while veterans affairs were allocated N$874 million.
Included in the veterans’ allocation is N$447 million for grants, N$47,6 million for projects and N$5 million for tombstones. The budget allocation for defence was also N$5,8 billion in the 2021/22 financial year.
“The security clusters always get the highest budget,” Venaani said.
• EDUCATION
Around N$14 billion is budgeted for the Ministry of Education, Arts and Culture. Around N$11,7 billion of that amount is set aside for salaries. The education ministry’s development budget was cut by N$98 million.
Public Service Union of Namibia secretary general Ndjizuvee Haakuria yesterday said: “The most important is the output, that is service delivery. The results do not justify the amount of money being spent on education,” he said.
• PUBLIC ENTERPRISES Minister of public enterprises Leon Jooste this week said the message to all government agencies was the same: “Live within your means.”
The Namibian Broadcasting Corporation is being allocated N$353 million, compared to N$263 million in 2021/22, while Namibia Wildlife Resorts is to receive N$188 million, and the Roads Contractor Company (RCC) is being allocated N$55 million.
The RCC has been paying workers while they are staying at home. Jooste said the future feasibility of the RCC is being evaluated and the outcome will be presented to the Cabinet for consideration.
Other state-owned public institutions that will receive government funding are the Namibia Institute of Pathology (N$107 million) and the Namibia Airports Company (N$47 million).
The Namibia Standards Institute will be allocated N$23,5 million, while the Namibian Competition Commission’s budget has been slashed to N$7 million. • RAILWAY
The treasury has allocated N$1 billion for the construction, renovation and improvement of railway lines. Last year, this budget was only N$458 million.
Development budget documents show that this money will be spent on the Walvis Bay-Kranzberg railway (N$812 million), the Sandverhaar-Buchholzbrunn railway line (N$76 million), and the northern railway extension (N$32 million).
The rest (N$220 million) is for unnamed railway network upgrading. • WAGE BILL The government’s wage bill is expected to total around N$30,1 billion this year – half of the budgeted revenue of N$59,7 billion.
This is more than the N$29,6 billion allocated last year, but will, however, not translate to salary increments. From this bill, the Social Security Commision will receive N$97 million.
Last year, Shiimi asked civil servants to tighten their belts. Namibia Public Workers Union secretary general Petrus Nevonga said their position on salary increments has always been clear.
He said civil servants’ salaries have not been increased since 2018. Napwu and the Namibia National Teachers’ Union want a 5% salary increment for the 2022/23 financial year, but negotiations with the government have reached a deadlock.
The issue is now being referred for conciliation to the Office of the Labour Commissioner, Nevonga said. • INDEPENDENCE DAY This year, the government has put aside N$25 million for Independence Day celebrations. This is a hike from N$2,5 million in the previous financial year.
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