By Emma Kakololo
WINDHOEK
The European Commission (EC) disbursed 8 million Euros (about N$80 million) in budgetary support to the Namibian Government yester-day.
The funds would be released through two annual fixed tranches disbursed during fiscal years 2007/08 and 2008/09 to finance the Public Finance Management Support Programme (PFMSP) which is aimed at maintaining fiscal stability as well as enabling government to achieve its development goals.
PMFSP is expected to come on stream in the coming weeks and consists of activities related to financial planning and operations, such as revenue enhancement, expenditure control, risk mitigation, improved governance of SOEs and capacity building.
EC Ambassador to Namibia, Dr Elisabeth Pape said an improved public finance management (PFM) could assist the country in making Vision 2030 a reality.
“It will enhance the ability of government in planning and budgeting, and provide the technical tools to help achieve a more efficient and equitable allocation of resources.”
Strengthening public accountability, she added, would also benefit Namibia’s democratic system, by linking money spent to results achieved in all ministries and increasing efficiency of the auditor general’s office.
The auditor general’s office, Ministry of Finance and National Planning Commission (NPC) would be responsible for the country’s PFM reform.
In addition she said, an improved PFM would not only attract more budget support from the EC but also from EU member states and other development partners.
Already, the European Development Fund (EDF) has proposed further budget support of N$425 million to ETSIP and N$310 million to rural development for the period 2008 to 2013.
However Pape said, the EDF was only going to confirm these intentions based on the successful implementation of PFMSP.
“Such budget support would, hopefully, be implemented starting in the financial year 2008/09 for the benefit of Namibia’s development, without any strings attached and by reducing enormously all transaction costs in line with the commitments taken by Namibia,” she said.
According to the NPC’s Director Helmut Angula results expected from the programme include, amongst others: public expenditure delivered results and value for money; revenue collected fully and fairly from a widening base; assets and liabilities being identified and deployed to optimal effect; risks identified and properly managed; transparency and accountability to Parliament and the public; and the necessary infrastructure in place to allow PFM to work efficiently and effectively.