Govt budget execution lags

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Govt budget execution lags
Govt budget execution lags

Africa-Press – Namibia. Government is struggling to execute its 2025/26 budget, with the mid-year review exposing weak spending in development programmes and calling for reform in procurement and revenue planning.

At a stakeholder consultation session attended by civil society, youth groups and officials from various ministries on Thursday, Finance Minister Ericah Shafudah disclosed that the operational budget set at N$ 79.8 billion had achieved only about 54 per cent execution by September, while development spending lagged “well below” 50 per cent.

“We are consulting ministries to understand why implementation is slow and what can be done to accelerate the progress,” Shafudah said, pointing to delays in procurement processes and the demand for fairness in allocations.

Shafudah told the audience that the budget was prepared in alignment with the latest National Development Plan (NDP6), focusing on economic transformation, human development, sustainability and governance. She said ministries and agencies must align their programmes to the NDP6 pillars.

Ministries had given feedback that procurement rules and bureaucratic review mechanisms slow down project launches. Some cited tension over allocation decisions between departments.

“You have given us reasons. What are you going to do?” Shafudah said, in reference to questions from ministries about declining revenue due to weak diamond demand and reduced economic output.

In response, the Ministry of Finance is drafting amendments to the Procurement Act to address bottlenecks and increase spending efficiency.

The minister also said that proposed tax reform bills are being reviewed ahead of submission to the National Assembly.

Shafudah rejected the idea that citizens needed more high-level figures, urging instead to translate budget numbers into tangible service delivery in communities. She reiterated that the consultations would inform the final budget presented to the Parliament. -Nampa

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