Understanding the 2021/2022 budget

The budget statement for the 2021/2022 financial year was read by the minister of finance, Ipumbu Shiimi, and it is important for the youth to really understand the budget and the allocation of funds.
Mariselle Stofberg
Theme: Boosting Resilience and Recovery

This theme is in resonance with the declaration by President Hage Geingob for the year 2021 to be the ‘Year of Resilience’, further summoning the country’s resolve to protect the capacity of the economy and the socio-economic structure, while supporting economic recovery from the impact of the Covid-19 pandemic.

Four main goals of the budget: To save lives, save livelihoods, save jobs and incomes and to place Namibia in a stronger position to thrive in the foreseeable future.

In respect of the 2020/21 financial year:

N$67.9 billion budget for the 2021/22 financial year

Total revenue is estimated at N$55.5 billion

The total proposed spending outline amounts to N$67.9 billion

Out of this, N$8.5 billion is earmarked for interest payments

The 2021/22 Appropriation Bill amounts to N$59.4 billion, for which N$53.9 billion is operational and N$5.6 billion is development.

About N$30 billion invested in Namibian youth

Ministries that deal directly with youth and young people’s affairs were funded a combined total of N$29 billion.

Allocation

Social sectors

A total of 53.1% of the non-interest expenditure, amounting to N$31.6 billion, is allocated to the social sectors. This reflects the priority assigned to the needs in the health and education sectors.

The health ministry is allocated N$8.1 billion - this is 13.6% of the total non-interest expenditure to, among others, support the national response on Covid-19, the associated roll-out of the vaccination plan, acquisition of pharmaceuticals and continued provision of services countrywide.

The education ministry receives N$13.8 billion, equivalent to 23.2%. Higher education, technology and innovation is allocated N$3.1 billion - or 5.3% of the total allocation - of which N$851 million is for the University of Namibia, N$488 million for the Namibia University for Science and Technology and N$1.2 billion for Namibia Students Financial Assistance Fund.

The gender ministry is allocated N$5.4 billion, equivalent to 9.2% of the total allocation, mainly to fund the social safety net programmes and to support the fight against gender-based violence.

Public safety and order

The public safety sector takes up the second highest allocation, amounting to N$12.1 billion or 20.3% of the total allocation, supporting the maintenance of law and order and continued investment in peace and stability.

The home affairs ministry is allocated N$5.7 billion, which is 9.6%.

Defence and veteran affairs are allocated N$5.4 billion, about 9.1% of the total allocation - a reduction of N$800 million or 12.8% from the current fiscal year.

The justice ministry is allocated N$491.4 million, while the Judiciary receives N$371.2 million.

The Anti-Corruption Commission is allocated N$62.8 million.

Economic and infrastructure sectors

The third highest allocation is accorded to the economic and infrastructure sectors, at N$11.7 billion or 19.8% of the total appropriation.

Transport receives N$2.5 billion, some 4.2%.

NamPower is rolling out investment in energy generation and transmission with investment commitments estimated at about N$10 billion over the next three years.

The agriculture ministry receives N$1.7 billion or 2.9%.

The finance ministry is allocated N$4.7 billion, about 7.9%. Out of this allocation,

a total of N$45.0 million is for the Development Bank of Namibia to support the bank’s small- and medium-sized enterprises lending and youth entrepreneurship financing facilities.

The public enterprises ministry is allocated N$733.4 million or 1.2%.

While the industrialisation ministry is allocated N$159.8 million.

Administrative sectors

The administrative sector receives the lowest allocation of N$4.0 billion, equivalent to 6.8% of the total allocation.

The prime minister is allocated an amount of N$417 million.

Urban and rural development is allocated N$1.6 billion or 2.7%.

The ministry of international relations and cooperation is allocated N$ 827.7 million.

The National Assembly is allocated N$117.2 million, while the National Council gets N$88.4 million.

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