Finance Minister Iipumbu Shiimi’s mid-term budget features a N$1.1 billion allocation to the goods and services across various government departments.
This includes a specific allocation of N$200 million aimed at supporting the Electoral Commission of Namibia (ECN).
The Finance Minister said this budgetary adjustment reflects the government’s commitment to addressing pressing needs and improving service delivery amid ongoing economic recovery efforts.
A notable allocation of N$698.8 million was earmarked for drought relief under the Office of the Prime Minister.
This funding aims to extend food distribution to 308,750 households until 30 June 2025.
This allocation underscores the government’s recognition of climate resilience as a critical policy area.
“This allocation increases the total drought relief budget for FY2024/25 to over N$1.4 billion. This is a significant resource envelope, which highlights the importance of instituting climate resilience policies and measures to minimise the impact of weather events on livelihoods.”
Other key allocations include N$450 million for health emergencies, N$233 million for summer cropping initiatives, N$187.8 million for educational utilities, and N$140 million for the Ministry of Defence.
Extending the monthly Conditional Basic Income Grant of N$600 to more beneficiaries in urban areas, Shiimi announced an additional N$139 million to that effort, complementing an earlier allocation of N$117.8 million set aside for old age social grants.
N$2.4 billion is allocated to subsidies and transfers, addressing shortfalls in medical aid schemes and operational expenses for educational institutions.
No additional funds were allocated to the development budget due to a low execution rate observed in previous periods.
The operational budget is now set at N$78.2 billion, reflecting an increase of $2.6 billion, while the development budget has been reduced to N$10.4 billion.
The state’s debt servicing costs remain stable at N$12.9 billion, with the nominal budget deficit slightly decreasing by N$277.3 million to N$8.7 billion, maintaining a GDP ratio of 3.2%.
The growth forecast for 2024 has been revised down to 3.6% from an initial 4.0%.