First budget under new government

• MALLY LIKUKELA THE new government led by President Hage Geingob will soon table the 2015/16 national budget.

In acknowledging macroeconomic challenges facing the country, the newly appointed finance minister Calle Schlettwein in his budget speech will lay down his vision on how he will navigate these challenges and propel Namibia’s economy to greater heights.

This piece of law – known as the National Budget, affects each and every one in Namibia and yet very few understand it. Moreover, this particular one is the first budget to be tabled under the new government, and naturally, it has been preceded by high expectations of reforms from all walks of life in Namibia.

I expect the finance minister to table a budget with a pragmatic recognition of macroeconomic and social challenges facing the country and a thrust towards structural reforms. The global economy in general and the domestic economy in particular constantly evolves, and thus, a need for constant policy reformation. The size of the upcoming national budget will increase as new ministries and departments will be added, to respond to the needs of the entire society. The increased expenditure will result in a shortfall which will range from between 4,5% and 5% GDP.

The deficit will be driven by the ambitious spending programme that the government embarked upon a few years ago which still needs to be implemented. Given the slow implementation of some of the major projects, the increased spending will continue before it moderates in the 2017/18 financial year.

Key areas that will require additional funding includes the Targeted Intervention Programme for Employment and Economic Growth (TIPEEG), Mass Housing Programme and the inevitable investments in the power infrastructure. There is also an increasing need to improve the social safety networks like social grants and old age pension support and poverty alleviation programmes.

Over and above, the minister is expected to table a budget that will provide a balanced policy framework aimed at supporting both the man in the street and the corporate sector. Promotion of investment and industrialisation in both the public and private sector is at the top of Government’s agenda and therefore, I expect to see the minister incentivising more money in the direction of industry based infrastructure.