The mid-year budget review – PWC
Namibia needs strong and sustained economic growth to address the sharply increasing budget deficit.
We shall persevere, we shall persist, and Namibia will prosper again. Chantell Husselmann, Country senior partner and tax leader: PWC
CHANTELL HUSSELMANN
The budget review by the Honourable Minister of Finance Iipumbu Shiimi has placed substantial emphasis on the fight against Covid-19, with large sums set aside to prevent and control the spread of the virus. While it appears that the global restrictions on movement of people are relaxed as vaccination programmes are rolled out, the effect on economies, including Namibia, have been harsh and recovery world-wide is expected to be slow.
Although the pandemic was unforeseen, an additional strain was placed on the Government’s finances taking into account that Namibia’s economy entered into a recession four years before being hit by the pandemic.
Evident from the mid-term budget review, Namibia needs strong and sustained economic growth to address the sharply increasing budget deficit. A primary focus remains employment creation and greater revenue contributions through taxes on increased profits which will strengthen the Namibian economy post the pandemic.
The mid-year budget review is not an additional budget and as its name indicates is a review opportunity where the honourable minister allocates resources to priority programmes, addressing fiscal consolidation and Government’s policy initiatives for the Medium-Term Expenditure Framework (MTEF).
The budgeted revenue is projected to increase by N$1.5 billion with the mid-year collection rate at 52%. The expenditure execution rate is depicted at 49% and projected to increase by a net N$1.8 billion. This imbalance in the projections lead to a projected increase in our debt to gross domestic product (GDP) ratio from 68.5% to 68.7%.
The speech further sheds light on several MTEF policy priorities which includes the approval of a Sovereign Wealth Fund for Namibia (Welwitschia Fund).
All tax proposals covered are a continuation of previous conversations. This includes ongoing stakeholder consultations and I encourage fellow Namibians to stay abreast and read up on the announced proposals. Our detailed mid-year budget speech analysis is available on our website.
In closing, current times call for a spirit of solidarity as we continue to create sustainable outcomes for all. This is further supported by quoting the Minister of Finance, Honourable Iipumbu Shiimi- “We shall persevere, we shall persist, and Namibia will prosper again!”
CHANTELL HUSSELMANN
The budget review by the Honourable Minister of Finance Iipumbu Shiimi has placed substantial emphasis on the fight against Covid-19, with large sums set aside to prevent and control the spread of the virus. While it appears that the global restrictions on movement of people are relaxed as vaccination programmes are rolled out, the effect on economies, including Namibia, have been harsh and recovery world-wide is expected to be slow.
Although the pandemic was unforeseen, an additional strain was placed on the Government’s finances taking into account that Namibia’s economy entered into a recession four years before being hit by the pandemic.
Evident from the mid-term budget review, Namibia needs strong and sustained economic growth to address the sharply increasing budget deficit. A primary focus remains employment creation and greater revenue contributions through taxes on increased profits which will strengthen the Namibian economy post the pandemic.
The mid-year budget review is not an additional budget and as its name indicates is a review opportunity where the honourable minister allocates resources to priority programmes, addressing fiscal consolidation and Government’s policy initiatives for the Medium-Term Expenditure Framework (MTEF).
The budgeted revenue is projected to increase by N$1.5 billion with the mid-year collection rate at 52%. The expenditure execution rate is depicted at 49% and projected to increase by a net N$1.8 billion. This imbalance in the projections lead to a projected increase in our debt to gross domestic product (GDP) ratio from 68.5% to 68.7%.
The speech further sheds light on several MTEF policy priorities which includes the approval of a Sovereign Wealth Fund for Namibia (Welwitschia Fund).
All tax proposals covered are a continuation of previous conversations. This includes ongoing stakeholder consultations and I encourage fellow Namibians to stay abreast and read up on the announced proposals. Our detailed mid-year budget speech analysis is available on our website.
In closing, current times call for a spirit of solidarity as we continue to create sustainable outcomes for all. This is further supported by quoting the Minister of Finance, Honourable Iipumbu Shiimi- “We shall persevere, we shall persist, and Namibia will prosper again!”
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