No time for waste
Finance minister Calle Schlettwein will next week table the 2017/18 national budget, which will arguably be his toughest assignment yet.
The tabling of the new budget comes against a backdrop of mounting fiscal pressures.
With government debt expected to reach N$72 billion in the coming financial year, which effectively represents 41% of the Gross Domestic Product (GDP), the finance minister has a huge task ahead of him. Schlettwein is now under pressure to ensure that there is a balancing act as far as government spending is concerned without causing anger or resentment.
Although economists have projected slight economic growth, with commodity prices expected to stabilise this year, it remains to be seen whether recent reforms and stronger fiscal consolidation measures are paying off.
It might not be all doom and gloom as Schlettwein has shown total commitment to fiscal consolidation in an attempt to help curb unnecessary spending. In recent months, government leaders have been dismissing the assertion that the country is “broke” in light of massive budget cuts at various ministries and other state agencies.
The “serious headwinds and some economic problems” being experienced in the country as President Hage Geingob said this week at a Swapo gathering, are serious and has had a huge impact on ordinary Namibians.
The construction industry has been forced to shed thousands of jobs, the school feeding programme in the northern Namibia is severely affected and we have heard of budgetary cuts at certain ministries being slashed by over 40%.
This is not a laughing matter and only heaven knows where we are going. The Geingob administration has promised prosperity to all, especially to the country's poor.
There is indeed a massive weight of expectation on government to come up with a balancing budget that primarily addresses the concerns of poor Namibians.
It is therefore our sincere hope that recent reforms will go a long way in finding a new path forward, with government ultimately managing the economy responsibly.
The tabling of the new budget comes against a backdrop of mounting fiscal pressures.
With government debt expected to reach N$72 billion in the coming financial year, which effectively represents 41% of the Gross Domestic Product (GDP), the finance minister has a huge task ahead of him. Schlettwein is now under pressure to ensure that there is a balancing act as far as government spending is concerned without causing anger or resentment.
Although economists have projected slight economic growth, with commodity prices expected to stabilise this year, it remains to be seen whether recent reforms and stronger fiscal consolidation measures are paying off.
It might not be all doom and gloom as Schlettwein has shown total commitment to fiscal consolidation in an attempt to help curb unnecessary spending. In recent months, government leaders have been dismissing the assertion that the country is “broke” in light of massive budget cuts at various ministries and other state agencies.
The “serious headwinds and some economic problems” being experienced in the country as President Hage Geingob said this week at a Swapo gathering, are serious and has had a huge impact on ordinary Namibians.
The construction industry has been forced to shed thousands of jobs, the school feeding programme in the northern Namibia is severely affected and we have heard of budgetary cuts at certain ministries being slashed by over 40%.
This is not a laughing matter and only heaven knows where we are going. The Geingob administration has promised prosperity to all, especially to the country's poor.
There is indeed a massive weight of expectation on government to come up with a balancing budget that primarily addresses the concerns of poor Namibians.
It is therefore our sincere hope that recent reforms will go a long way in finding a new path forward, with government ultimately managing the economy responsibly.
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