Significant fiscal budget for the 2024/25 financial year tabled
The Minister of Finance and Public Enterprises, Hon. Iipumbu Shiimi presented a significant budget of N$100.1 billion for the financial year 2024/2025.
Speaking before parliament during the budget speech, Shiimi emphasized that the total budget has surged by 12.4 % compared to the previous year’s estimates.
The FY2024/25 budget, as outlined by Shiimi, is geared to stimulate domestic demand, bolster public infrastructure, and uphold fiscal responsibility to ensure Namibia’s ability to meet its debt obligations efficiently within the Medium-Term Expenditure Framework (MTEF).
“The FY2024/25 national budget contains macroeconomic policy proposals for economic growth through accelerating infrastructure development,” he explained.
Shiimi ascribed the robust growth in the country’s Gross Domestic Product (GDP) to enhancements in tax administration by the Namibia Revenue Authority, which led to significant improvements in revenue streams and key fiscal indicators.
Despite the positive trajectory, Shiimi cautioned about the impending repayment of a substantial portion of the government’s debt portfolio over the MTEF, with the largest maturity being the US$750 million Eurobond due on 29 October 2025.
“This is the largest single-day debt maturity in the history of our country,” he noted.
Shiimi said that Namibia is committed to redirect part of the increase in revenues to the sinking fund to manage the rollover risk and contain increases in future debt service obligations.
“This will ensure that we minimize a potentially significant future drain on resources desperately needed for infrastructure development, poverty reduction, and combatting climate change, among others,” he said.
Meanwhile, Shiimi disclosed that the operational budget is projected at N$74.6 billion, reflecting an 8.8% increase from the FY2023/24 estimates.
Notably, this rise largely stems from a 5% adjustment in the civil service wage bill, amounting to N$1.7 billion, tosafeguard against purchasing power erosion, he said.
