Business Reporter
WHILE tabling the budget for the 2024/25 financial year, the Minister of Finance and Public Enterprises announced that the Ministry of Finance and Public Enterprises has been allocated a budget of N$8.1 billion in FY2024/25. This includes N$3.0 billion for the Public Servants Medical Aid Scheme (PSEMAS) and over N$700 million in transfers to public enterprises.
A total of N$212.0 million has been budgeted for the Meat Corporation of Namibia (MeatCo), including the settlement of their contingent liabilities. Additionally, N$300 million has been provided for TransNamib to support their day-to-day operations, considering significant infrastructure and operational challenges. Furthermore, N$88 million has been allocated for the completion of the Luderitz Waterfront project.
“Furthermore, we have allocated N$77.0 million to Agribank for a dedicated subsidy program to support farmers whose operations have been adversely affected by drought conditions. In addition, we have set aside funds to explore mechanisms to accelerate employment creation in the economy,” Shiimi said.
The finance minister explained that the economic and infrastructure sector, which caters to the sector ministries responsible for construction of infrastructure and implementation of economic policies, accounts for 23.9% of the total budget, equivalent to N$20.9 billion in FY2024/25 and some N$58.9 billion over the MTEF.
The operational expenditure largely reflects a 5.0% adjustment in the civil service wage bill at a cost of N$1.7 billion to guard against the erosion of purchasing power. “Despite significant inflationary pressures over the past several years, civil servants have exercised extraordinary patience, and we extend our heartfelt appreciation for their forbearance during the difficult economic conditions. The wage adjustment is effective from 01 April 2024,” Shiimi said.
The operational budget also includes N$1.4 billion in once-off legacy tax liabilities of selected public enterprises. This includes enterprises whose funding was severely reduced due to fiscal consolidation in previous years.
The beneficiaries include the University of Namibia (UNAM), TransNamib, the Namibia Broadcasting Corporation (NBC), the New Era Corporation, the National Fishing Corporation of Namibia (FishCor), and the Roads Contractors Company (RCC). Shiimi explained that this action was undertaken on the back of agreed conditions, including regular publication of audited financial statements and commitment to meet future tax liabilities henceforth.
He further stated that the budget of the Ministry of Mines and Energy has increased by more than 50% to N$381.9 million in FY2024/25 and some N$1.5 billion over the MTEF. The increased allocation is meant to improve capacity at the ministry, especially in the Petroleum Affairs Directorate, in light of the upsurge in exploration activities in the Orange Basin. Additionally, the development budget of the ministry has more than doubled, with N$131.0 million allocated to fast-track rural electrification and improve access to electricity countrywide.
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