SINCE government’s wage bill and its growth are unsustainable, there is scope in the 2017 budget to remedy this.
Also, much of the growth that the country has experienced has been led by the public sector.
These are some of the key words finance minister Calle Schlettwein uttered at another budget review event held at a Windhoek hotel on Friday.
Nedbank, in partnership with Ernst & Young and Namibia Equity Brokers, on Friday hosted a 2017/18 budget review event, where Schlettwein delivered the keynote address.
The discusssion came after Schlettwein announced in his budget speech last Wednesday that the public sector wage bill, which now stands at 49% of all non-interest expenditure, has been a major driver of increased public expenditure.
In his budget speech, he had said the civil service wage bill has been discussed on many occasions, “and yes, it is unsustainably high”.
He added that close to 50% of total revenue is committed to the wage bill. This wage bill is budgeted at N$28 billion this financial year out of a total budget of N$62 billion.
This is a 15% increase from the last financial year, which saw N$24 billion spent on salaries.
The wage bill is also projected to slightly go up next year, medium-term expenditure framework documents show.
During the event, Schlettwein added that much of the growth which was experienced has been led by the public sector, and he thus urged the private sector to step up its act.
During the same event, Namibia Equity Brokers’ analyst, Ngoni Bopoto, stressed that the rising cost of debt in the event of a downgrade remains a concern.
He added that the 2017/2018 national budget looks good, which in his opinion sent out the right signals.
“Now, we need to strengthen the processes in order to execute effectively,” he said.
On his part, Ernest and Young’s tax official, Cameron Kotze, stated that a tax payment system is still a challenge, and suggested that it be reviewed.
“As business leaders, we are duty-bound to leave a lasting legacy of inclusive prosperity for all of Namibia,” noted Nedbank Namibia’s chief executive, Lionel Matthews.
