Mwinga applauds budget

THE National Budget for 2008/09 presented by Minister of Finance Saara Kuugongelwa-Amadhila on Wednesday has been given the thumbs-up by one of the country’s most outspoken economists, Martin Mwinga.

Although, Mwinga has problems with parts of the budget, he said in general it was a positive budget which showed prudent fiscal policy. Mwinga and Kuugongelwa-Amadhila have often clashed over the budget and yesterday, the Minister admitted to the crowd in attendance at the FNB/Deloitte and Touche Budget Review breakfast in Windhoek that it was a notable situation that the two of them seemed to be on the same page.She defended her budget saying: “The spending has been designed both to protect the most vulnerable in our society in the face of food and fuel inflation and to provide a boost to Namibia’s development and economic growth.”Mwinga applauded the expansionary budget and some of the Minister’s foresight and bold decisions like increasing an allocation of N$420 million to the Prime Minister’s Office at the right time in the face of natural disasters.This is a significant rise from last year’s N$116 million.He also applauded the increase in allocation to the war veterans, saying this would ensure national peace and stability.”For the first time fiscal policy was used to manage an economic cycle.The 2008/09 budget passes the test of income redistribution and poverty alleviation, ensuring fiscal stability and sustainability, contributing to economic growth and balancing the interests of different stakeholders of the economy,” said Mwinga.The economist commended the allocation granted to the SME sector, saying this would stimulate growth.The Small Business Credit Guarantee Trust received N$11 million, and the Ministry of Trade and Industry received N$5 million for SME support.”These are positive allocations and if well utilised it would improve development of SMEs.”However, he said financial support rendered to parastatals should be targeted to benefit the economy, and not to repay old debts.A number of State-owned enterprises received money that raised eyebrows.Air Namibia – which seems to be a thorn in the side of the economy – received N$150 million, the Roads Contractor Company gained N$70 million while the Namibian Broadcasting Corporation was allocated N$116 million.Kuugongelwa-Amadhila responded that funds allocated to the SOEs were mainly for strengthening infrastructure, hence improving productivity.She said most SOEs including Air Namibia had assured her Ministry of credible turnaround strategies which should see them weaning themselves off Government funding in the next couple of years.This statement drew sniggering from many in the gathering, who expressed their doubts and showed their disapproval of the Air Namibia funding.Mwinga and Kuugongelwa-Amadhila have often clashed over the budget and yesterday, the Minister admitted to the crowd in attendance at the FNB/Deloitte and Touche Budget Review breakfast in Windhoek that it was a notable situation that the two of them seemed to be on the same page.She defended her budget saying: “The spending has been designed both to protect the most vulnerable in our society in the face of food and fuel inflation and to provide a boost to Namibia’s development and economic growth.”Mwinga applauded the expansionary budget and some of the Minister’s foresight and bold decisions like increasing an allocation of N$420 million to the Prime Minister’s Office at the right time in the face of natural disasters.This is a significant rise from last year’s N$116 million.He also applauded the increase in allocation to the war veterans, saying this would ensure national peace and stability.”For the first time fiscal policy was used to manage an economic cycle.The 2008/09 budget passes the test of income redistribution and poverty alleviation, ensuring fiscal stability and sustainability, contributing to economic growth and balancing the interests of different stakeholders of the economy,” said Mwinga.The economist commended the allocation granted to the SME sector, saying this would stimulate growth.The Small Business Credit Guarantee Trust received N$11 million, and the Ministry of Trade and Industry received N$5 million for SME support.”These are positive allocations and if well utilised it would improve development of SMEs.”However, he said financial support rendered to parastatals should be targeted to benefit the economy, and not to repay old debts.A number of State-owned enterprises received money that raised eyebrows.Air Namibia – which seems to be a thorn in the side of the economy – received N$150 million, the Roads Contractor Company gained N$70 million while the Namibian Broadcasting Corporation was allocated N$116 million.Kuugongelwa-Amadhila responded that funds allocated to the SOEs were mainly for strengthening infrastructure, hence improving productivity.She said most SOEs including Air Namibia had assured her Ministry of credible turnaround strategies which should see them weaning themselves off Government funding in the next couple of years.This statement drew sniggering from many in the gathering, who expressed their doubts and showed their disapproval of the Air Namibia funding.