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Home / Finance ministry motivates N$5.8 billion budget…as PSEMAS allocation decreases

Finance ministry motivates N$5.8 billion budget…as PSEMAS allocation decreases

2023-03-29  Edgar Brandt

Finance ministry motivates N$5.8 billion budget…as PSEMAS allocation decreases

The Ministry of Finance and Public Enterprises on Monday motivated its N$5.8 billion budget for Parliament to consider and approve the expenditure request. Deputy minister Maureen Hinda-Mbuende motivated the ministry’s budget to meet financial requirements for the 2023/2024 financial year.

This ministry is mandated to handle central government finances, including coordination of the national budget, financial markets, consumer legislation and tax policy. 

The ministry also plays a significant role in positioning the country’s public enterprises to meaningfully contribute to the country’s developmental agenda.

During her motivation, Hinda-Mbuende noted the Public Service Medical Aid Scheme (PSEMAS) has been allocated a reduced amount of N$2.7 billion, which is actually N$500 million less than the previous financial year’s allocation. This, said Hinda-Mbuende, is in line with the government’s directive to reform PSEMAS. 

Moreover, N$6.2 million has been allocated for the implementation of a Tax Policy Unit within the ministry. 

This unit is set to carry out the oversight function on the Namibia Revenue Agency (NamRA) after it was postponed to the 2023/2024 financial year due to the need to secure savings to implement the adjusted salary remuneration and benefits for civil servants, which was implemented during the current financial year. 

Furthermore, NamRA was allocated just over N$939 million, which represents a realignment of ministerial expenditure from the Ministry of Finance and Public Enterprises to NamRA and not necessarily an increase in the overall vote allocation.

“NamRA is a non-commercial public enterprise; therefore, all its operational and development-related needs will be furnished by the government through the Ministry of Finance and Public Enterprises. The realignment is attributed to a successful mass recruitment project, which enabled the agency to increase its human capital from a mere 189 employees in August 2022 to about 750 employees by the end of November 2022,” said Hinda-Mbuende. 

She also noted that as of the end of February 2023, the total number of staff members previously working for the finance ministry and currently appointed by NamRA was 836 employees, while the total number of staff members who remain seconded to NamRA from the ministry stood at 293. 

The initial number of employees seconded to NamRA at its operationalisation in April 2021 was 1 324 employees. The agency’s structure has a total of 1 498 positions.

Then, the Department of Public Enterprises, which was successfully integrated into the finance ministry during the current financial year, was allocated N$445 million, of which N$425 million will be transferred to public enterprises. 

These funds are meant to assist public enterprises with the implementation of their respective business and strategic plans with the objective for them to become self-sustaining.

In addition, the Economic Policy Advise programme, which has the objective to advise the government on economic policy aimed at fostering macro-economic stability, advancing economic development and addressing socioeconomic challenges, has been allocated N$18.7 million, which represents 0.3 % of the total allocation.

The Revenue Management programme is tasked to collect revenue in the forms of taxes, duties and fees as prescribed in relevant tax, customs and excise laws, as well as to ensure compliance with such laws, and to facilitate trade and movements of goods and services to and from Namibia, was allocated N$355 million, which represents 8.1 % of the total allocation.

The Government Expenditure Management programme, for which N$790 million (13.5% of the total) has been allocated, is tasked to ensure the effective and timely formulation of the national budget and the Medium-Term Expenditure Framework (MTEF), proper control, accounting and reporting of the financial resources and management of State Assets and liabilities. 

This programme is also responsible for coordinating and accounting for the government’s non-tax revenue, and the functions and responsibilities of the Treasury Department resort under this programme.

Other programmes that received sizeable allocations for the 2023/24 national budget include Government Procurement Management (N$1.1 billion), Civil Servants Managed Health Care (N$2.7 billion), Public Private Partnership (N$45 million), Legal, Economic and Financial Advisory Services (N$445 million), as well as Policy Coordination and Support Services (N$1.4 billion). 

2023-03-29  Edgar Brandt

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