Aligning budgetary priorities with national development goals is a daunting task indeed and even more so for a new administration including a new finance minister. That is because the country’s budget must focus on productive areas that can bolster job-creation, infrastructure development and notable investment in essential services. 

Imagine, all these priority areas must be addressed while at the same time totally transforming the domestic economy to ensure economic growth. This structural economic transformation, according to analysts, is necessary to ensure inclusive growth and contribute to macroeconomic stability. 

While addressing this multitude of challenging issues, Finance minister Ericah Shafudah and her team also have to deal with calls for greater transparency, accountability and inclusivity in the budget formulation and implementation processes. When combined with focusing on policies that support economic diversification, resilience and equitable growth, analysts agree this year’s budget sufficiently spoke to national priorities and shared aspirations for this country’s future. This is particularly true due to the fact that Shafudah tabled the largest development budget in Namibia’s history. 

Ultimately, one of the most pressing aims of this budget was to accelerate investments in productive public infrastructure through an increase in the development budget. This is to upgrade infrastructure that has become a hindrance to economic activity, and to expand social infrastructure to meet the needs of a growing and rapidly urbanising populace.  

Moreover, the finance minister has to keep a close eye on cultivating fiscal prudence and moderating the pace of debt accumulation, not only during the current financial year, but also through the Medium-Term Expenditure Framework (MTEF).  

When Shafudah delivered her budget, statement yesterday, her experience as a seasoned technocrat was evident as she reaffirmed that the national budget is not merely a fiscal exercise but a developmental instrument with profound implications for the quality of life for Namibians and the overall trajectory of the nation. 

Imagine balancing your household budget and then trying to apply the same general principles to a national budget. This certainly entails a delicate harmonising act to realise each and every pressing priority while at the same time ensuring economic growth. 

This is not to mention the alignment of expected government spending and related fiscal reforms with the development priorities under a new administration. What is particularly challenging is when this new administration promised to invest heavily in areas such as sports infrastructure, youth empowerment initiatives, quality education and training, the creative industry, quality health and social welfare, land, housing and sanitation areas.

Moreover, stimulating domestic growth through a menu of prescribed policy actions to boost household incomes and create a conducive business environment for businesses cannot be easy, even for the experienced team at the finance ministry. 

This is where Shafudah’s knowledge and skill as a seasoned technocrat is a blessing for the finance ministry. The experts expect her leadership to play a crucial role in implementing fiscal policies to balance the expected increase in public spending with economic stability.