Budget cuts must start at the top Credit rating agency Fitch’s opinion last week emphasised a message it appears Finance Minister Calle Schlettwein had tried to get across during his national budget speech in March. At least Schlettwein was honourable enough to admit government under-estimated threats to the Namibian economy and the impact some of these have had. There have been deep cuts to budget allocations in the current financial year already. However, it remains to be seen whether spending curbs on personnel and other departments such as youth and sport is enough to address the problem on the ground. Government has already committed billions to huge projects, which is seen in some quarters as skewed priorities. Yet, despite noting the urgency of these matters already in March, it then appeared as though Schlettwein was failing to sell his peers the idea of truly getting behind his theme of “consolidation” – reining in unnecessary spending. The new parliament and office of the prime minister offices are just some of the spending that have set tongues wagging. Economists have particularly also questioned the need for a defence budget of N$6.6 billion and other “meat on the bone”, which were thought to be excessive still, and not of critical importance in these crunch times. Not many people out there are convinced that the current budget is one that most accurately reflects Namibia’s real priorities. Another interesting and potentially significant move announced by the minister this week to try and close the budget deficit and put more money at the State’s disposal, is discussion currently underway with the country’s banking sector. Namibia’s financial services sector is renowned for its almost invincible health and unending profits, though the bulk of these profits are simply shipped to their head offices in South Africa. Perhaps our government should have shown moral leadership by first taking an intensive look at public office bearer’s salaries and other fringe benefits such as utility allowances and luxury cars, with a need to normalise them. At the end of the day, budget cuts must start at the top.Budget cuts must start at the top Credit rating agency Fitch’s opinion last week emphasised a message it appears Finance Minister Calle Schlettwein had tried to get across during his national budget speech in March. At least Schlettwein was honourable enough to admit government under-estimated threats to the Namibian economy and the impact some of these have had. There have been deep cuts to budget allocations in the current financial year already. However, it remains to be seen whether spending curbs on personnel and other departments such as youth and sport is enough to address the problem on the ground. Government has already committed billions to huge projects, which is seen in some quarters as skewed priorities. Yet, despite noting the urgency of these matters already in March, it then appeared as though Schlettwein was failing to sell his peers the idea of truly getting behind his theme of “consolidation” – reining in unnecessary spending. The new parliament and office of the prime minister offices are just some of the spending that have set tongues wagging. Economists have particularly also questioned the need for a defence budget of N$6.6 billion and other “meat on the bone”, which were thought to be excessive still, and not of critical importance in these crunch times. Not many people out there are convinced that the current budget is one that most accurately reflects Namibia’s real priorities. Another interesting and potentially significant move announced by the minister this week to try and close the budget deficit and put more money at the State’s disposal, is discussion currently underway with the country’s banking sector. Namibia’s financial services sector is renowned for its almost invincible health and unending profits, though the bulk of these profits are simply shipped to their head offices in South Africa. Perhaps our government should have shown moral leadership by first taking an intensive look at public office bearer’s salaries and other fringe benefits such as utility allowances and luxury cars, with a need to normalise them. At the end of the day, budget cuts must start at the top.