Month: February 2024

The government’s public debt stock has decreased to 60.1 per cent of the Gross Domestic Product (GDP) during the 2024/25 financial year from 62.5 per cent recorded at the end of the preceding financial year.

The reduction was announced by Minister of Finance Iipumbu Shiimi when he tabled the national budget for the 2024/25 financial year on Wednesday.

‘The public debt stock is estimated at N.dollars 165.8 billion or 60.1 per cent of GDP during FY2024/25, a reduction from an estimated 62.5 per cent of GDP at the end of the preceding financial year,’ Shiimi said.

He said the government has budgeted N.dollars 12.8 billion to meet debt servicing obligations in the 2024/25 financial year, equivalent to 14.2 per cent of revenues and 4.7 per cent of the GDP.

‘The debt servicing metrics, although stabilising, still remain above the desired benchmark of 10 per cent of revenues, therefore, the fiscal framework provides for specific measures to maintain public debt on a reduction path and ensure that debt is raised
in the most cost-effective manner.

He further said government is estimating to realise a positive primary budget balance of 1.4 per cent of the GDP, which subsequently projects an estimated N.dollars 8.9 billion as a deficit budget in nominal terms.

Shiimi tabled a N.dollars 100 billion national budget for the 2024/25 financial year.

Source: The Namibia Press Agency

WINDHOEK: First National Bank (FNB) economist, Helena Mboti, has applauded the government on the newly announced tax relief, saying it supports the late President Hage Geingob’s legacy of being the people’s president.

She said this in an interview with Nampa on Wednesday following the tabling of the 2024/25 National Budget by Ministry of Finance and Public Enterprises, Iipumbu Shiimi in the National Assembly.

In particular, the tax threshold has been raised from N.dollars 50 000 to N.dollars 100 000.

Mboti also highlighted the N.dollars 2.1 billion to be received by the vote of water including N.dollars 1.1 billion in beneficiary project loans for the refurbishment of the Oshakati and Rundu water treatment plants as well as the development of the Ohangwena 2 Aquifer.

This funding has been availed for drilling of boreholes, expansion of pipelines and various rural water supply projects to improve access to water within communities, especially considering the increased drought incidences.

‘When you invest
in infrastructure you avail electricity and water accessibility, as well as housing, all this stimulates business because now people can make use of these things in order to carry out various business activities,’ Mboti stated, further expressing her excitement for this and how it will impact entrepreneurial spirit in these areas.

She also mentioned how through tax relief for SMEs, business owners have more cash flowing in the business.

‘By paying less taxes SMEs have more money to work with to reinvest in their businesses as they are giving less to the government and keeping more for themselves,’ said Mboti.

She further expressed that although the budget did not directly mention anything about availing grants for SMEs, these new policies will greatly impact small business in a positive manner.

Source: The Namibia Press Agency

WINDHOEK: Finance and Public Enterprises Minister Iipumbu Shiimi said the national budget for the 2024/25 financial year is dedicated to the late President Hage Geingob to honour his legacy.

Shiimi tabled a historic N.dollars 100.1 billion budget in the National Assembly on Wednesday under the theme ‘Continuing the legacy of His Excellency Dr Hage G. Geingob by caring for the Namibian child.’

The minister further paid tribute to the late president for ‘the confidence and honour he bestowed upon me to steer our public finances.’

He said the budget was crafted with the aim of supporting domestic demand and stimulating economic activities.

‘At the same time, we remain keenly aware that the government cannot achieve sustainable job creation without the support of private businesses, including small and medium enterprises. As such, the fiscal framework considered the requisite interventions to create a conducive operating environment to enable the private sector to expand domestic investments,’ Shiimi said.

T
he budget is built on three pillars, among others, to prioritise stimulating domestic demand through a variety of policy actions to boost household incomes and create a conducive environment for businesses to thrive and expand investments.

Secondly, Shiimi said the budget seeks to accelerate investments in productive public infrastructure through an increase in the development budget to upgrade infrastructure that has become a hindrance to economic activities.

Thirdly, the minister noted that the fiscal framework continues the path to cultivate fiscal prudence to contain the public debt, which stands at N.dollars 151.3 billion, equivalent to 61.3 per cent of GDP.

‘While pursuing the above policy objectives, we remain cognisant of our social and everyday lived realities, including poverty levels, high unemployment, and frequent incidences of drought. Accordingly, specific provisions have been made in this budget to safeguard livelihoods and guard against excess reversals on gains made in the social sector,’
Shiimi said.

The minister noted that the N.dollars 100.1 billion budget includes N.dollars 3.2 billion in development projects funded through external loans and grants. It also includes a N.dollars 12.8 billion in interest payments.

Source: The Namibia Press Agency

OTJIWARONGO: The Otjiwarongo Municipality on Thursday launched its five-year strategic plan at the town.

Minister of Urban and Rural Development, Erastus Uutoni, launched the document in the presence of several regional and local authority councillors from Okahandja, Otavi, Grootfontein, Otjiwarongo and Okakarara.

‘This strategic plan document should not collect dust in your offices. Instead, use it as a guiding tool in developing this town as well as in rendering quality municipality services to the residents,’ urged Uutoni.

The minister reminded the Otjiwarongo local authority councillors of their five-year term, saying that in that period, they should deliver serviced land, houses and clean drinking water amongst others to the residents.

He also called on the municipality to allocate funds and utilise competent minds that would drive the aims and objectives of the strategic plan.

In his closing remarks Uutoni requested the municipality to look around town for a piece of land where the Ministry of Urba
n and Rural Development would spend money to service land for residential purposes, saying there is N.dollars 700 million budgeted by his ministry for land serving across the country during this financial year.

Otjiwarongo Mayor, Gottlieb Shivute, on his part promised to deliver the piece of land, as such a request provides a solution to objective one of the newly launched strategic plan on spatial planning and infrastructure development.

The five other objectives of the strategic plan include the sustainable working environment and public safety; socio-economic advancement of the town; business innovation and financial sustainability; as well as the operational efficiency of the workforce.

‘Our main aim in the next five years is to develop this town into a smart city of excellence,’ said Shivute.

The municipality’s acting chief executive officer, Erickson Mwanyikange, said the Otjiwarongo municipality in the next five years intends to improve its financial capacities.

‘We are owed more than N.dollars 57
million in rates and taxes. Therefore, our aim is to collect this money and use it in implementing our strategic plan of action,’ he said

Source: The Namibia Press Agency