The spending boost that Government embarked on in 2008 is set to continue during the next financial year, with total spending to exceed N$60 billion in the 2014-15 fiscal year.
Government expenditure is projected to amount to about N$60,1 billion during the year from 1 April to the end of March 2015, according to the national budget that the Minister of Finance, Saara Kuugongelwa-Amadhila, unveiled in the National Assembly yesterday.
With Government’s income expected to total about N$52,4 billion in the next financial year, a budget shortfall of N$7,62 billion – about 5,4 percent of Namibia’s gross domestic product – will have to be financed, figures in the budget show.
Kuugongelwa-Amadhila said the budget deficit is expected to average around 3,5 percent of GDP over the next three financial years, while Government’s total debt load is projected to average around 26,8 percent of GDP.
The country’s national debt is expected to increase from about N$32,4 billion in 2013-14 to about N$38,48 billion, or 27,2 percent of GDP, in 2014-15, the minister said.
“A substantial element of fiscal support to the economy lies with the provision of infrastructure that promotes private investment and trade and the provision of critical social services in education and health,” Kuugongelwa-Amadhila said. “To this objective shall be added increased support for [the] private sector and industrialisation through expanded access to development finance and targeted incentives.”
Kuugongelwa-Amadhila said Namibia’s economy has “displayed remarkable resilience” despite uncertainties and volatility in international markets. The country’s economy is estimated to have grown by a respectable 4,8 percent in 2013 and is projected to continue to expand at a rate of about five percent in 2014 and at an average of 4,8 percent over the next three years, she said.
With the tabling of the budget for the fiscal year 2010-13, a budget deficit of N$4,7 billion was projected. It has now turned out that the deficit was limited to a shortfall of N$114 million, the finance minister said. The deficit of N$7,5 billion that was projected in the budget for 2013-14 is also expected to turn out to be lower, she said.
Since the launch of the Targeted Intervention Programme for Employment and Economic Growth (Tipeeg) in March 2011, an estimated 83 315 jobs – of which 15 829 are permanent jobs and 67 485 temporary – have been created, Kuugongelwa-Amadhila said. A total of N$14,5 billion has been allocated for Tipeeg over a three-year period, she added.
The projected total expenditure of N$60,1 billion in 2014-15 would represent an increase of about 26,3 percent on Government’s budgeted spending of N$47,58 million in 2013-14.
That is a far cry from the spending projections that the Ministry of Finance still had in mind a year ago. In the national budget for 2013-14, it was projected that Government’s total expenditure in 2014-14 would grow to N$48,2 billion, which was to be an increase of only 1,3 percent from expenditure of N$47,5 billion in 2013-15. It was also projected that Government spending would increase to N$50,48 billion in 2015-16.
In the new budget, the spending estimate for 2015-16 has been increased to N$64,1 billion, while expenditure in 2016-17 is projected to amount to N$69,5 billion.
Government revenue is projected to amount to about N$58,7 billion in 2015-16 and about N$66 billion in 2016-17.
Education will again receive the biggest single slice from the budget in 2014-15, with an allocation of N$13,06 billion. The second biggest allocation is N$6,6 billion, which goes to the Ministry of Defence. The Ministry of Health and Social Services is to receive N$6,06 billion from the budget, while the Ministry of Finance will receive N$5,9 billion and the Namibian Police N$4,2 billion.
Included in the money to be allocated to the Ministry of Finance is N$2,5 billion that is to be used to pay interest and other charges on Namibia’s national debt.
During the next financial year Government expects to spend about N$1,34 billion on social pensions. Kuugongelwa-Amadhila said that the old-age pension being paid by Government to people over 60 would not be increased this year – it has been increased over the previous two years – but indicated that it would be adjusted again next year.
Among the major proposed allocations reflected in the budget is a total amount of N$2,1 billion to war veterans over the next three years (N$1,4 billion in 2014-15), N$1,8 billion to Air Namibia over the next three years (N$472 million in 2014-15, N$579 million the year thereafter, and N$760 million in 2016-17), N$1,6 billion to NamPower over the next three years to build the Kudu gas power plant, and N$1,07 billion to the Namibia Airports Company over the next three years.
State-owned enterprises are due to receive a total of N$9,5 billion during the 2014-15 fiscal year and a total of N$24,8 billion over the next three years.
The National Assembly is due to start discussing the budget from Tuesday next week.
Government expenditure is projected to amount to about N$60,1 billion during the year from 1 April to the end of March 2015, according to the national budget that the Minister of Finance, Saara Kuugongelwa-Amadhila, unveiled in the National Assembly yesterday.
With Government’s income expected to total about N$52,4 billion in the next financial year, a budget shortfall of N$7,62 billion – about 5,4 percent of Namibia’s gross domestic product – will have to be financed, figures in the budget show.
Kuugongelwa-Amadhila said the budget deficit is expected to average around 3,5 percent of GDP over the next three financial years, while Government’s total debt load is projected to average around 26,8 percent of GDP.
The country’s national debt is expected to increase from about N$32,4 billion in 2013-14 to about N$38,48 billion, or 27,2 percent of GDP, in 2014-15, the minister said.
“A substantial element of fiscal support to the economy lies with the provision of infrastructure that promotes private investment and trade and the provision of critical social services in education and health,” Kuugongelwa-Amadhila said. “To this objective shall be added increased support for [the] private sector and industrialisation through expanded access to development finance and targeted incentives.”
Kuugongelwa-Amadhila said Namibia’s economy has “displayed remarkable resilience” despite uncertainties and volatility in international markets. The country’s economy is estimated to have grown by a respectable 4,8 percent in 2013 and is projected to continue to expand at a rate of about five percent in 2014 and at an average of 4,8 percent over the next three years, she said.
With the tabling of the budget for the fiscal year 2010-13, a budget deficit of N$4,7 billion was projected. It has now turned out that the deficit was limited to a shortfall of N$114 million, the finance minister said. The deficit of N$7,5 billion that was projected in the budget for 2013-14 is also expected to turn out to be lower, she said.
Since the launch of the Targeted Intervention Programme for Employment and Economic Growth (Tipeeg) in March 2011, an estimated 83 315 jobs – of which 15 829 are permanent jobs and 67 485 temporary – have been created, Kuugongelwa-Amadhila said. A total of N$14,5 billion has been allocated for Tipeeg over a three-year period, she added.
The projected total expenditure of N$60,1 billion in 2014-15 would represent an increase of about 26,3 percent on Government’s budgeted spending of N$47,58 million in 2013-14.
That is a far cry from the spending projections that the Ministry of Finance still had in mind a year ago. In the national budget for 2013-14, it was projected that Government’s total expenditure in 2014-14 would grow to N$48,2 billion, which was to be an increase of only 1,3 percent from expenditure of N$47,5 billion in 2013-15. It was also projected that Government spending would increase to N$50,48 billion in 2015-16.
In the new budget, the spending estimate for 2015-16 has been increased to N$64,1 billion, while expenditure in 2016-17 is projected to amount to N$69,5 billion.
Government revenue is projected to amount to about N$58,7 billion in 2015-16 and about N$66 billion in 2016-17.
Education will again receive the biggest single slice from the budget in 2014-15, with an allocation of N$13,06 billion. The second biggest allocation is N$6,6 billion, which goes to the Ministry of Defence. The Ministry of Health and Social Services is to receive N$6,06 billion from the budget, while the Ministry of Finance will receive N$5,9 billion and the Namibian Police N$4,2 billion.
Included in the money to be allocated to the Ministry of Finance is N$2,5 billion that is to be used to pay interest and other charges on Namibia’s national debt.
During the next financial year Government expects to spend about N$1,34 billion on social pensions. Kuugongelwa-Amadhila said that the old-age pension being paid by Government to people over 60 would not be increased this year – it has been increased over the previous two years – but indicated that it would be adjusted again next year.
Among the major proposed allocations reflected in the budget is a total amount of N$2,1 billion to war veterans over the next three years (N$1,4 billion in 2014-15), N$1,8 billion to Air Namibia over the next three years (N$472 million in 2014-15, N$579 million the year thereafter, and N$760 million in 2016-17), N$1,6 billion to NamPower over the next three years to build the Kudu gas power plant, and N$1,07 billion to the Namibia Airports Company over the next three years.
State-owned enterprises are due to receive a total of N$9,5 billion during the 2014-15 fiscal year and a total of N$24,8 billion over the next three years.
The National Assembly is due to start discussing the budget from Tuesday next week.
No comments:
Post a Comment