Hengari cautions Govt on increased expenditure during election years

Popular Democratic Movement (PDM) lawmaker Inna Hengari has cautioned finance minister Iipumbu Shiimi on increased expenditure, especially during an election year.

Hengari was speaking in parliament on Wednesday while giving her contribution to the budget statement for the 2024/25 financial year.

“In the backdrop of a global election year, we are witnessing increased expenditure, a phenomenon often observed during such periods. It is also no surprise that the government resorts to fiscal expansionary budgets to sway votes, given the intricate nexus between politics and economics,” Hengari said.

She added that the government must exercise caution against overindulgence in such practices, as they may impede economic recovery in the post-election years.

“Entering into elections provides us with insights into the market’s reception towards our fiscal and economic policies, shedding light on investments essential for achieving governmental objectives,” Hengari added.

According to her, Namibia’s budget underscores a substantial shift towards social transfers, resembling what economists term ‘Nanny-state’ characteristic. While social grants have their merits, ideally, we aim for a higher proportion of taxpayers compared to grant recipients,” she said.

NAMRA, SPEED UP

Hengari also raised concerns over delayed imported goods by the Namibia Revenue Agency (Namra) of goods ordered by young people running ‘Order with Me’ businesses, due to Namra’s stringent operations.

“I also recognise that the delay has been caused by possible tax evasion by companies like Aramex, etc. It is, however, my humble plea that when employing measures, we also consider the delays they may have on businesses, especially youth-run businesses,” she said.

Meanwhile, All People’s Party (APP) parliamentarian Erastus Shuumbwa said the budget allocated to the Ministry of Sport, Youth and National Service falls short of what is necessary to provide the youth with the opportunities they deserve, such as state-of-the-art sport stadiums, job creation programmes and in-service training.

“I urge the government to re-evaluate its budgetary priorities and to recognise the invaluable role that sport, youth development and national services play in shaping a prosperous future for Namibia,” Shuumbwa said.

He added that the government must commit to providing the youth with the tools they need to succeed, thrive and contribute meaningfully to society.