PM believes the Budget strikes a good balance

PRIME Minister Nahas Angula maintains that the proposed National Budget for 2006-07 strikes a good balance between meeting the competing demands of welfare, social services and economic growth.

Angula said it was significant that the Budget focused on growth and poverty reduction. Speaking in the National Assembly yesterday, Angula said some MPs had tried to “downplay” the significance of the Budget’s orientation.”The balance between welfare expenditure and growth investments is well articulated in this Budget,” he said.He listed these as an increase in social grants to pensioners, the allocation to the registration of orphans and vulnerable children, an increase in anti-retroviral coverage, the recruitment of more nurses and the commitment to other welfare sectors.Angula singled out Government’s investment in growth as the N$388 million committed to the education sector, strengthening the financial capacity of the Development Bank and the N$2,6 billion boost to the productive sectors of mining, agriculture and fishing.Angula said the Government’s Medium Term Expenditure Framework, which included N$475 million for the tourism sector in the next three years, clearly corresponded to resolutions taken at last year’s Cabinet retreat.”Government understands well that growth is primarily a function of innovation, investment and entrepreneurship.The role of knowledge and ideas cannot therefore be over-emphasised in the innovation process,” said Angula.The Premier said Government had created the basis for sustained and shared growth due to its commitment to socio-economic transformation.Now was the time for the private sector to respond to State input by vigourously pursuing development.The Prime Minister said he hoped that the Financial Sector Charter, once in place, would reduce capital outflow from Namibia through increased investment in domestic activities.”I believe these initiatives will create a national capacity and opportunities for directing national savings into investment portfolios.”Namibia suffers from [a] capacity deficit to manage and direct national savings into investment,” said Angula.Angula said Namibia also lacked entrepreneurship in its chain of growth promotion and enhancement.”Entrepreneurship is a form of human capital.Developing an entrepreneurial culture requires training, mentorship and acquisition of new ideas and the creation of [a] conducive environment for enterprise development,” said Angula.Angula praised Finance Minister Saara Kuugongelwa-Amadhila for reducing the Budget deficit from a record high of 7,2 per cent of Gross Domestic Product (GDP) in 2003-04 to 1,1 per cent forecast for 2005-06, increasing revenue collection by 23 per cent compared to the previous year, pledging to decrease debt stock and achieving a Budget surplus of N$114 million.”These are no mean achievements.These feats contribute to the strengthening and deepening of our economic fundamentals of micro-economic stability, stable and secure financial systems, limited price distortions and openness to foreign direct investment,” Angula said.Speaking in the National Assembly yesterday, Angula said some MPs had tried to “downplay” the significance of the Budget’s orientation.”The balance between welfare expenditure and growth investments is well articulated in this Budget,” he said.He listed these as an increase in social grants to pensioners, the allocation to the registration of orphans and vulnerable children, an increase in anti-retroviral coverage, the recruitment of more nurses and the commitment to other welfare sectors.Angula singled out Government’s investment in growth as the N$388 million committed to the education sector, strengthening the financial capacity of the Development Bank and the N$2,6 billion boost to the productive sectors of mining, agriculture and fishing.Angula said the Government’s Medium Term Expenditure Framework, which included N$475 million for the tourism sector in the next three years, clearly corresponded to resolutions taken at last year’s Cabinet retreat.”Government understands well that growth is primarily a function of innovation, investment and entrepreneurship.The role of knowledge and ideas cannot therefore be over-emphasised in the innovation process,” said Angula.The Premier said Government had created the basis for sustained and shared growth due to its commitment to socio-economic transformation.Now was the time for the private sector to respond to State input by vigourously pursuing development.The Prime Minister said he hoped that the Financial Sector Charter, once in place, would reduce capital outflow from Namibia through increased investment in domestic activities.”I believe these initiatives will create a national capacity and opportunities for directing national savings into investment portfolios.”Namibia suffers from [a] capacity deficit to manage and direct national savings into investment,” said Angula.Angula said Namibia also lacked entrepreneurship in its chain of growth promotion and enhancement.”Entrepreneurship is a form of human capital.Developing an entrepreneurial culture requires training, mentorship and acquisition of new ideas and the creation of [a] conducive environment for enterprise development,” said Angula.Angula praised Finance Minister Saara Kuugongelwa-Amadhila for reducing the Budget deficit from a record high of 7,2 per cent of Gross Domestic Product (GDP) in 2003-04 to 1,1 per cent forecast for 2005-06, increasing revenue collection by 23 per cent compared to the previous year, pledging to decrease debt stock and achieving a Budget surplus of N$114 million.”These are no mean achievements.These feats contribute to the strengthening and deepening of our economic fundamentals of micro-economic stability, stable and secure financial systems, limited price distortions and openness to foreign direct investment,” Angula said.