By Prince Mupiri
WINDHOEK, March 6 — The SWAPO Party Youth League (SPYL) recently released a statement commending the Namibian Minister of Finance and Public Enterprise, Hon. Iipumbu Shiimi and his colleagues for the 2023 national budget. The budget has been themed “Economic Revival and Care for the Poor” and aims to provide a pro-poor budget that assists the most vulnerable people in society.
Namibia is currently facing an economic climate in which domestic prices remain high, while real wages depreciate, and high inflation at 7.0 percent, along with rising interest rates, puts continuing pressure on already limited families, particularly low-income households. In light of this, the SPYL welcomes a rise in the tax-free threshold for individual income taxpayers from N$50,000 to N$100,000 beginning in FY2024/25. The SPYL also commends the deferral of any new tax policy that might raise taxpayers’ tax burden.
The national budget also includes an increase in monthly grants for the Old Age Grant, Disability Grant, and Orphan and Vulnerable Children (OVCs) Grant by N$100 per month. Additionally, the Disability Grant for claimants under the age of 18 has been increased from N$250 to N$1,400 per month, which will take effect on April 1, 2023. The budget has allocated N$69.8 million to broaden the coverage of the Orphan and Vulnerable Children Grant to include approximately 30,000 eligible children who are currently on the waiting list.
The SPYL is pleased to see a 92% increase in the Ministry of Education, Arts, and Culture’s developmental budget, which includes N$570 million for classroom and hostel construction and refurbishment. The education infrastructure deficit in public schools, particularly in rural regions, demonstrates the critical need to boost budget allocation to capital investment in order to improve the learning environment in public schools.
Furthermore, the government has allocated N$200 million for the recruitment of additional teachers, increased the Higher Education Vote by 9.8% to account for student funding by the Namibia Student Financial Assistance Fund (NSFAF), and completed and operationalized the three new Vocational Training Centres (VTCs) under construction in Keetmanshoop, Khorixas, and Nkurenkuru. The budget has also provided funding to provide the UNAM medical school with the necessary equipment to assist with training at the dental school.
In the health sector, the budget provides a 49% increase in the health development budget, with N$700 million allocated for the investment in and refurbishment of health facilities, the acquisition of drugs and ambulances, as well as hiring of medical workers.
The budget has also granted funds to different programs and initiatives that help Small and Medium Enterprises (SMEs) and youth entrepreneurs, including the revival of the defunct Equipment Assistance Plan with the goal of providing financial help to people and SMEs, particularly youth-owned firms, across the country for the purchase of manufacturing equipment and supplies.
While the SPYL commends the government for its efforts, it expresses concern about the rising debt-to-GDP ratio and urges all ministries and stakeholders to speed program implementation across all sectors to guarantee effective and fair service delivery to the population. Overall, the SPYL is pleased with the income growth in 2022/23 and the government’s ongoing commitment to directing a large portion of the budget allocation to social and developmental goals.
