Finance Minister Erika Shahda said Namibia expects performance improvements in several domestic revenue streams, stressing that the country’s Value Added Tax (VAT) is expected to rise N$2.6 billion.
Presenting her maiden budget in Congress on Thursday, Shahuda suggested that the revised estimate for fiscal year 2024/25 is projected to increase income taxes on individuals by N$1.8 billion, but that non-mining companies’ taxes are estimated to rise N$1.3 billion over the same period.
The minister also said the government has postponed the use of N$1.6 billion from Namibia Post and Telecom Holdings until fiscal year 2025/26, following the dissolution of the company.
“In addition, approximately N$450 million from the sale of the remaining 9% stake in Mobile Telecommunications Limited (MTC) has been shifted to estimates for next year,” she said.
The Bank of Namibia is also expected to pay an additional dividend to the $720 million tuning.
Despite the budget being presented in a highly challenging fiscal environment, Shahuda said he had experienced significant headwinds during fiscal year 2025/26 that significantly constrained the available resource envelope.
She said this brings estimated total revenues for fiscal year 2025/26 to N$92.6 billion, up just 1.9%, up just 1.9% from the revised estimates for the previous year.
Sign up for the AllAfrica newsletter for free
Get the latest African news
success!
Almost finished…
You need to check your email address.
Follow the instructions in the email you sent to complete the process.
error!
There was a problem processing the submission. Please try again later.
“The substantial shares of revenues arising from the South African Customs Union (SACU) cuts by N$6.9 billion in receipts are confirmed at N$21.1 billion,” the Finance Minister said.
According to Shafudah, revenue growth is projected to average 5.2% over the Medium-Term Expenditure Framework (MTEF) period, violating N$100 billion by fiscal year 2027/28.
“In addition, SACU revenues and some medium increase in domestic revenue streams have been considered in line with the context of hypothetical growth. Overall, we expect the GDP ratio to remain strong, accounting for an average of 32.0% over MTEF,” she said.
The minister further said that while the government has made every effort to adopt a conservative approach in its forecast, taking into account potential negative risks, the revenue outlook is a subject of important uncertainty, especially in the global economy.
“Nottheless, we remain committed to managing government finances in a prudent way that ensures long-term fiscal sustainability by achieving sustainable fiscal deficits and public debt,” Shahuda added.
