Budget Hits N$100 Billion Milestone … cause for celebration or concern?

 

By: Nghiinomenwa-vali Erastus

 

After fluctuating between N$60 billion and N$86 billion for eight years, the treasury, under the guidance of the central government, has propelled the national budget by approximately N$10 billion, reaching the significant N$100 billion mark.

This increase, from N$89.0 billion in the current financial year, signals an intention to allocate more funds towards social and economic commitments, as well as servicing interest and debts compared to previous financial years.

While some analysts and political parties view this as a campaigning tactic, this budget will also witness national debts soaring to an estimated N$165.8 billion, or 60.1% of GDP, during the 2024/25 financial year.

However, with the Real GDP yet to surpass N$200 billion, the country’s economic output was only estimated at N$154.1 billion by 2023.

During the tabling of the budget in parliament this week, Finance Minister Ipumbu Shiimi defended this significant expansion, asserting that the guiding principle of the national budget remains a careful balance between pursuing a people-centred yet sustainable fiscal framework.