Concerns raised over Namibia’s spending

NO income tax relief for individuals, high spending on defence and concern over whether the huge Budget allocation for education will improve teaching standards were the major issues raised by Members of Parliament at a special budget workshop on Tuesday.

“Namibia has been slipping on global indexes over the past few years, but how is Government addressing this?” DTA Chairman Johan de Waal asked. With an allocation of N$4,7 billion, Education receives the largest slice of the cake in this year’s national Budget.Defence Minister Erkki Nghimtina said Namibian economists should tell the Government and the nation how they can diversify Namibia’s economy.”Also tell us how to diversify our exports,” the Minister urged.In his analysis, Old Mutual Managing Director for African operations, Johannes !Gawaxab, said that very few budget measures were directed at diversifying the country’s export industry or boosting productivity and promoting domestic consumption.”The budget allocation of 10,6 per cent to defence is disappointing, given that it is not of a productive nature.A major industry such as tourism, which has grown to be a key employer and foreign currency earner, fails to get the necessary focus,” !Gawaxab said.”Although Government acknowledges the increased risks from reduced revenues coming from the Southern African Customs Union (Sacu) in future, it is unlikely that current efforts to broaden the tax base will sufficiently plug the gap.Going forward, more restraint in terms of expenditure is likely to be necessary,” !Gawaxab added.He welcomed the increase in State pensions and higher monthly grants for war veterans.Swapo backbencher Clara Bohitile was critical of the budget allocation for agriculture – only about four per cent.”African nations agreed several years ago that agriculture should be allocated 10 per cent of national budgets.Namibia has not done this yet, although this sector is the livelihood of the majority of our population,” she said.The workshop was also attended by several Cabinet ministers and Permanent Secretaries.With an allocation of N$4,7 billion, Education receives the largest slice of the cake in this year’s national Budget.Defence Minister Erkki Nghimtina said Namibian economists should tell the Government and the nation how they can diversify Namibia’s economy.”Also tell us how to diversify our exports,” the Minister urged.In his analysis, Old Mutual Managing Director for African operations, Johannes !Gawaxab, said that very few budget measures were directed at diversifying the country’s export industry or boosting productivity and promoting domestic consumption.”The budget allocation of 10,6 per cent to defence is disappointing, given that it is not of a productive nature.A major industry such as tourism, which has grown to be a key employer and foreign currency earner, fails to get the necessary focus,” !Gawaxab said.”Although Government acknowledges the increased risks from reduced revenues coming from the Southern African Customs Union (Sacu) in future, it is unlikely that current efforts to broaden the tax base will sufficiently plug the gap.Going forward, more restraint in terms of expenditure is likely to be necessary,” !Gawaxab added.He welcomed the increase in State pensions and higher monthly grants for war veterans.Swapo backbencher Clara Bohitile was critical of the budget allocation for agriculture – only about four per cent.”African nations agreed several years ago that agriculture should be allocated 10 per cent of national budgets.Namibia has not done this yet, although this sector is the livelihood of the majority of our population,” she said.The workshop was also attended by several Cabinet ministers and Permanent Secretaries.