She termed as "unfounded" reports in some media that Government was struggling to make ends meet, but admitted that Government resources "remain tight".

According to her, the provisional economic figures for the end of this financial year were "promising".

Tabling an Appropriation Bill to channel N$65 million from the State Revenue fund to the Government pension scheme to cover the debts of providing HIV-AIDS life-sustaining treatment, Kuugongelwa-Amadhila used the platform to also provide details of the country's financial position, in the wake of reports that it was dire.

She lashed out at the financial sector, which had made what she termed "adventurous" statements about Government's alleged uncreditworthiness.

"For the current financial year, the fiscal outlook is much more favourable than for the previous one," she told MPs.

Forecasts for the end of this financial year have led the Bank of Namibia to revise the Gross Domestic Product (GDP) upwards from 4,1 per cent to 4,4 per cent.

Kuugongelwa-Amadhila said this would be as a result of the mining sector and increased manufacturing activities.

She said because the inflation rate had remained low at 3,9 per cent, coupled with low interest rates, Namibia offered a stable environment for investment.

While the exporting sector was still struggling because of a strong Namibia dollar against the US dollar, an increase in world metal prices has partly offset this negative effect.

Kuugongelwa-Amadhila said Government had tightened its controls on tax collection and compliance and more revenue is expected.

She maintained that the total revenue shortfall for this fiscal year would be "minimal".

In December, the Minister was unable to table a revised budget in Parliament because revenue collection was three to four per cent less than forecast.

Consequently, the Budget deficit was 2,7 per cent more than projected.

Kuugongelwa-Amadhila said Namibia was financing its deficit primarily from the domestic market, but this should not be interpreted as a lack of alternatives to raise capital.

"The Government has the opportunity to raise sizable capital from the international market at favourable rates.

In addition, we continue to borrow for major infrastructure and development projects from regional and international borrowers, without any credibility concerns being raised following their regular assessments," she said.

She said Government remained committed to developing the domestic capital market, but were also monitoring closely the costs associated with it.

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