Budget safeguards growth and social spending: Shafudah

WINDHOEK, 25 MAR (NAMPA) – Finance Minister Ericah Shafudah on Tuesday defended the 2026/27 national budget, saying it strikes a careful balance between fiscal consolidation and economic support while safeguarding social spending and promoting sustainable growth.
Responding to concerns raised by Members of Parliament during the second reading of the Appropriation Bill, Shafudah emphasised that the budget does not introduce broad-based tax increases, but rather seeks to maintain revenue stability without placing additional strain on households and businesses.
“Concerns were raised regarding taxes, revenue performance, and whether the 2026-2027 budget relies too heavily on taxation. The government wishes to emphasise that this budget does not introduce broad-based tax increases. Instead, it focuses on protecting revenue stability while avoiding additional pressure on households and businesses during this economic recovery,” the minister explained.
To address this, the government is prioritising economic diversification and domestic revenue mobilisation under the Sixth National Development Plan (NDP6).
She also addressed concerns raised by the members regarding the public debt levels.
“The government agrees that debt must be managed prudently and transparently. We also want to indicate that when we look at the debt, we should not only look at the debt as a ratio to GDP, but we should also look at other components like the structure of the debt, which remains largely domestic,” the minister explained.
On development spending, Shafudah highlighted that allocations extend beyond the N.dollars 6.5 billion reflected in the budget, incorporating grants, loans, and support from institutions such as the National Housing Enterprise and the Road Fund Administration.
She further addressed concerns that the allocation to this sector was not sufficient. “In terms of the allocation to agriculture, concerns were raised that the allocation to this sector was not sufficient,” Shafudah said.
She said that the allocations to agriculture should be viewed holistically, including financing through Agribank and other programmes aimed at food security, employment, and economic transformation.
The minister further reiterated that the budget prioritises productive sectors such as infrastructure, agriculture, and youth employment initiatives, while strengthening conditions for private sector-led growth.
Shafudah in February tabled a N.dollars 104 billion budget, comprising an N.dollars 81.3 billion operational allocation, while total public debt stood at N.dollars 174 billion, representing 65.2 per cent of GDP as of early 2026.
(NAMPA)
AT/AS