EDITORIAL: When the money runs out, priorities must change

Namibia's mid-year budget review should serve as a warning that the country can no longer afford to spend as though its traditional revenue sources will always deliver.Diamond taxes and royalties, which contributed N$5.8 billion in 2023/24, are expected to bring in just N$414 million this financial year. Meanwhile, public debt is projected to reach N$201.7 billion, with N$15.4 billion required for interest payments alone.These figures demand difficult decisions about what government can afford, what must be postponed and which expenditures genuinely improve people's lives.It is concerning that ministries have requested an additional N$13.1 billion while revenue projections have been reduced by N$1.5 billion.The additional N$535 million for the public servants' medical aid scheme is particularly troubling when government itself acknowledges that the scheme is financially unsustainable.Every allocation, including spending on security and administration, must therefore withstand public scrutiny.Namibia needs functioning hospitals, classrooms, roads and employment opportunities, but these priorities will become increasingly difficult to finance if debt servicing continues consuming public revenue. Fiscal discipline must become a practice, not merely a promise repeated whenever the budget is presented.

EDITORIAL: When the money runs out, priorities must change

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Namibian Sun 2026-10-23

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EDITORIAL: When the money runs out, priorities must change

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Namibian Sun 2026-10-23

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