Photo: Contributed
By: Nghiinomenwa-vali Hangala
For the past four financial years (2022/23-2025/26), the Namibian government has spent N$317.5 billion through its various Offices, Ministries and Agencies procuring goods and services.
The money was spent through the National Appropriation Bill or Budget tabled every year, and this amount excludes interest payments.
According to accountability reports compiled by the Ministry of Finance, reviewed by The Villager.
If the estimated expenditure (excluding interest payments) for this financial year (2026/27) and next year is added, the government expenditure will total more than half a trillion (N$500 billion).
The National Budget has been a backbone of the Namibian economy, as it is supposed to stimulate the economy through public procurement.
It is a fiscal package meant to stimulate the economy through government consumption (buying goods and services), especially when the government buys from local producers and service providers.
As a result, it helps support and stimulate local production, employment, and the market for local entrepreneurs, consequently paying back the money through various taxes.
However, if the national budget is used to procure products and services from outside, it represents leakages, as only a few dollars return through taxes and employment.
Local companies and analysts have been arguing for more local procurement in both consumption and development budgets, with directives in place empowering SMEs and farmers; however, not all OMAs are adhering to them.
Moreover, the accountability reports do not report on how much of the budget is spent on local consumption and development.
In recent years, the national budget has increased by N$24.4 billion, highlighting increased government consumption, and a slow down on capital investment.
Despite the reluctance to consume locally and use local service providers in capital projects by certain OMAs, most of the national budget is funded by tax revenue, including SACU.
Only the remaining budget deficit is borrowed, but again, most of it is borrowed locally.
For the past four financial years assessed, tax revenue collected from the economy amounted to N$292.9 billion.
Unlike expenditure, it has not grown consistently; however, more collections were made in the years it grew.
erastus@thevillager.com.na
