Minister of Finance and Public Enterprises Iipumbu Shiimi presented the national budget for 2024/25, which totalled N$100 billion. 

The budget was presented under the subject ‘Continuing the Legacy of His Excellency Dr Hage G Geingob by Caring for the Namibian Child’. 

Its purpose is to protect livelihoods, and prevent excessive reversals on advances made in the social sectors. 

Geingob deeply touched Namibians.  

His compassion and concern extended to the entire country, making him a father figure to everyone. Thus, the budget emphasises Namibia’s continued commitment to prioritising the welfare and future of its children. He was also praised by pensioners, who said the late president was always there for them while increasing their monthly allowances.

For the first time, Namibia grieved the death of a serving president, who died on 4 February 2024 at the age of 82. He was laid to rest at Windhoek’s Heroes’ Acre last weekend. 

Many Namibians greeted the new budget with open arms since it provides a piece of the national cake to almost everybody.

Shiimi, despite being accused of attempting to increase votes for his political party at the end of the year, distributed his billions to essential needs while maintaining fiscal discipline. 

Namibia estimates total revenues of N$90.4 billion for FY2024/25, an increase of 11.5% from the revised estimates of the previous year. The substantial boost to revenues stems from a positive adjustment in Southern African Customs Union (Sacu) receipts, which is estimated at N$28 billion.

Shiimi’s confirmation of last year’s announcement of the threshold increase for income tax on individuals from the current N$50 000 to N$100 000, was greeted with relief.  This action, he said, will result in an injection of N$646 million directly into the pockets of taxpayers. Effectively, all individual taxpayers will be exempted from paying tax on the first N$100 000 of their annual income as from 1 March 2024.

The old-age and disability grants will be increased from N$1 400 to N$1 600 per month, effective from 1 April 2024. This is a less-than-expected increase, but still a shot in the arm for many households who only rely on the income of one pensioner. 

One will be interested to monitor and see how public enterprises are going to manage their debts, going forward, after Shiimi allocated about N$1.4 billion in once-off legacy tax liabilities of selected public enterprises. Not to forget, young professionals who are looking for properties were given a helping hand in acquiring assets as the minister announced that the brackets for transfer duties and stamp duties will be adjusted for inflation. 

Accordingly, the exempt level will be lifted from N$600 000 to N$1.1 million. Moreover, the threshold to trigger the transfer duty rate of 8% will be increased to N$3.15 million, effective in FY2024/25. 

Also, a supertax transfer duty and stamp duty bracket for luxury residential properties will be introduced for residential properties costing above N$12 million. 

However, the level of the public debt stock is a cause of concern as it is estimated at N$165.8 billion, or 60.1% of gross domestic product (GDP) during FY2024/25.

There is a budget of N$12.8 billion to meet debt servicing obligations in FY2024/25, equivalent to 14.2% of revenues and 4.7% of GDP.

This obligation requires us to spend more on paying back debt than we spend on health (N$10 billion) and defence (N$6 billion), which were always some of the bigger budget votes.

While many ministries received increments, it is imperative that they use these funds as intended, and not return it to Treasury as the needs of the people should not be ignored, especially in this election year.