Calle tables N$62.5 billion budget

Calle tables N$62.5 billion budget
Finance minister Calle Schlettwein today tabled a N$62.5 billion national budget for the 2017/18 financial year, down from the N$66 billion tabled in the last financial year.
Presenting the budget in the National Assembly, Schlettwein said the appropriation bill is being tabled against the backdrop of a challenging fiscal and economic environment. He added that there was more to this budget than just tightening the fiscal purse. He said better fiscal results are now being realised following government’s consolidation programme adopted after the mid-year budget review during 2016/17.
“These gains came about because of principled, albeit painful actions. These early gains must be sustained and, as a nation, we should resolve to nurture these emerging gains and keep spending pressures under control,” he said.
Schlettwein spoke candidly about the Namibian economy, which he says needed to be transformed. “We need to transform the economy so that wealth is distributed downward without destroying our hard-won economic and political stability.
“As we struggle for a prosperous Namibia we have to contend with some challenging trade-offs,” he said. Schlettwein announced that old-age pension will go up by N$100 to N$1 200 senior citizens, while increases are also expected when it comes to grants for the vulnerable.
The ministry of education will once again receive the biggest chunk of the budget cake with N$11.98 billion going to basic education, while higher education has been allocated N$3.07 billion, including N$926 million for Unam and N$533 for the Namibia University of Science and Technology.
The ministry of health will receive an allocation of N$6.51 billion, while the defence budget has been slightly cut to N$5.68 billion from N$5.95 billion. The minister said given the difficult economic situation, he doesn’t intend to propose general tax rate increase or introduce new taxes at this stage.

STAFF REPORTER