Minister of Finance Iipumbu Shiimi last week said to revive the domestic economy, the country’s public finances should be stable. “No one will want to invest in an economy where there is macro instability and public stability is key to macro stability and therefore to growth,” said Shiimi.
He made these remarks at a 2020/21 mid-year budget review breakfast hosted by PwC. According to Shiimi, the ministry is trying to figure out how to stabilise government finances further, which has been complicated by the pandemic.
He added that there is a need to improve revenue administration, particularly how to recover and increase the tax base so that the fiscus collects tax owed to it.
“Our debt is higher. We need to focus on new areas that we did not focus on before,” said the finance minister.
Shiimi said Namibia will continue with fiscal consolidation and noted that bigger amounts are spent on public enterprises with the knowledge that this is urgent spending.
He continued that the Ministry of Enterprises is working out an ownership policy to help filter some enterprises to reduce the amount of resources availed.
Furthermore, the finance minister stated that it is important for all Namibians to figure out how the country can deal with numerous challenges, including Covid-19, slow growth and inequality.
He also emphasized that the public-private partnership is important to help revive the economy. Shiimi said the private sector should come on board and help the government to transform the economy through creating more employment and also to reduce inequality.
“There is a need to generate formal employment, so the government can be able to raise more money,” said Shiimi.