Dylan Mukoroli
Minister of Finance and Public Enterprises, Iipumbu Shiimi recently delivered the country’s budget, which outlines the government's priority plans, funding, borrowing, and economic growth prospects.
The theme is “Continuing the legacy of H.E Dr. Hage G Geingob by caring for the Namibian Child”.
It makes strong reference to how the social, physical, and educational well-being of the Namibian child remained at the late president's heart and it should be a humanistic pledge that we should all encompass.
In economics and governance, few moments hold as much significance as the annual budget speech delivered by the minister of Finance and Public Enterprises. It is not merely a presentation of fiscal numbers and policies; it is a proclamation of a nation's priorities, a roadmap for progress, and an affirmation of hope.
When our minister of Finance and Public Enterprises delivered this empowering budget speech, it was not just about balancing the books; it was about igniting the flames of possibility and empowerment among citizens. And it is fair to say that this is what is presented. A budget that ensures each sector is accommodated.
It is important to note that this budget is not just one that came to be.
This is a budget that was influenced by years of planning, consolidating spending, prioritising spending, maintaining interest payments, and justifying the debt: GDP ratio.
The allocations as stipulated ensure that each sector be it infrastructure or social has the fair ability to recover. This budget was also greatly beefed up by a functioning and well-structured revenue agency. NamRA has done very well in increasing GRN revenue and ensuring compliance.
This budget goes beyond the technical jargon of deficits and surpluses.
It resonates with the people's aspirations, recognising their struggles, and offering tangible solutions to uplift lives. It is a moment where the government acknowledges its responsibility not only to manage finances but also to foster inclusive growth and prosperity.
One such move is the increase in social grants, especially the N$200 increase for old age and disability. In as much as it is an increase, the budget recognised that it is still not sufficient when looking at the cost of living. However, the increase is welcomed.
Central to this empowering budget speech is the emphasis on inclusivity. It acknowledges the diverse tapestry of society and ensures that economic policies benefit all segments, irrespective of gender, race, or socio-economic status.
It promotes opportunities for the underprivileged, providing avenues for upward mobility and leveling the playing field.
This is where the OMAs that have a direct mandate to empower communities must not compromise. There must be zero compromises towards the implementation. They must go back to the drawing board and relook at funding income-generation activities that seek to empower communities in underprivileged areas.
On the domestic economic front, it was encouraging to learn of the clarion call to diversify the economy as this is a key cornerstone to the fiscal and economic policy framework.
I quote from the budget that `this would require the government to create a conducive environment by addressing the identified binding constraints to growth and addressing existing policy coordination barriers.
That could facilitate a faster emergence of new engines of growth, especially in sectors with the potential to create high jobs. In this vein, we will continue to implement the Economic Diversification Strategy and integrate it into the upcoming sixth National Development Plan (NDP). In support, the country has seen firsthand the devastating effects of relying on dominant markets such as mining and agriculture.
It placed us under severe pressure when commodity prices slowed down and the drought hit us very hard. Thus, diversification will increase and better our income streams and not have such a devastating effect.
When looking at tax policy & administration reforms, the move to maintain policy proposals aimed at providing some relief to taxpayers to boost domestic demand and broaden the tax base to improve revenue mobilisation. When looking at the cost of living, this revolutionary move places some buying power back in the hands of the consumers and its impact varies from the structure of the tax bracket.
The increases made to the social sectors such as the OMAs of Gender Equality, Poverty Eradication and Social Welfare, and Youth and Sports are highly applauded. The breakdown of allocations for the Ministry of Gender Equality that unpacks the increase and prioritization of social safety nets will have a monumental impact. However, the ministry also has an impactful programme named the income generating activities.
This is a programme where materials are bought for beneficiaries that go through a well-accredited selection process. The beneficiaries are then trained in generating, starting, and improving your business modules, which is very practical in them gaining skills.
This support goes a long way in supporting those women, men, and youth who want to venture into income generation. There is thus a need to relook at the funding priority of this important program.
In conclusion, the budget does what is expected to do, It is about empowering individuals and communities alike to realise their dreams and contribute meaningfully to the progress of society. In the end, it's about transforming lives and building a brighter tomorrow for generations to come.
* Dylan Mukoroli is passionate about Sustainable Community Development & Development Finance.