Shiimi tables N$84.6 billion budget for the financial year 2023/2024 – Budget up by 9.7%
The Minister of Finance and Public Enterprises, Iipumbu Shiimi this week tabled an N$84.6 billion budget for the financial year 2023/2024 under the theme: “Economic Revival and Carrying for the Poor”.
The earmarked amount is inclusive of N$2 billion in development projects funded outside the State Revenue Fund and N$10 billion in debt servicing costs, Shiimi said in parliament while tabling the national budget.
“I table this budget in full awareness and recognition of the continued hardships endured by most of our citizens from the various corners of our beloved country,” Shiimi said, adding that the budget amount increased by 9.7% on last year’s budget.
According to Shiimi, 2023/2024 national budget is anchored on three fiscal pillars of pro-sustainability under which it aims to reduce the budget deficit, pro-poor by providing support for the poor via various social safety nets, and pro-growth by optimizing economic growth.
The latest budget saw education and health ministries receive the bulk, with N$16.7 billion being allocated to education, while N$9.6 billion went to health.
Shiimi said to guard against the erosion of purchasing power for the social safety nets, a provision has been made in this budget to increase the monthly Old Age Grant and the Disability Grant as well as the Orphan and Vulnerable Children Grant by N$100 per month.
Meanwhile, on the revenue front, total collections of N$74.7 billion Namibia dollars are estimated for the financial year 2023/24, about 16.5% higher than the revised estimates for the financial year 2022/23, he said, adding that the significant boost to revenues stems from an upward revision in receipts from the Southern African Customs Union (SACU) customs pool to N$24.3 billion, around N$6.4 billion higher than our previous estimates.
Shiimi said on the domestic front, recovery in economic activities supported by gains from improved tax compliance in line with tax administration reforms resulted in upward revisions of expected collections on value-added tax and personal income tax.
“Continuing with the trends echoed in the financial year 2022/23 Mid-Year Budget Review, the Namibian economy continues to register resurgent growth, better revenue outturn, and strengthening economic fundamentals,” he said.
According to Shiimi for 2023, growth is projected to moderate to 3.2%, reflecting revised mining production estimates, before slowing further to 2.2% in 2024.