CAM estimates national budget at N$59.9 billion
08 Mar 2017 14:40pm
WINDHOEK, 08 MAR (NAMPA) - Capricorn Asset Management (CAM) has predicted that the national budget for the 2017/18 financial year will be N.dollars 59.9 billion, lower than that of last year.
The 2016/17 national budget was N.dollars 61 120 637 000, which was reduced to N.dollars 57 620 637 000 for the remainder of the 2016/17 financial year in October last year.
A statement issued by CAM on Wednesday said there is no question that policy makers have more control over expenditure reduction than they do over revenue generation in the interest of reducing the budget deficit.
It noted that budget cuts will have to be strategically executed, otherwise much needed economic growth will be delayed and that will in turn impede revenue generation and further increase the deficit.
The Medium Term Expenditure Framework (MTEF) suggests a cut amounting to N.dollars 10 billion this financial year which would bring expenditure to 31 per cent of gross domestic product from a current estimate of 38.8 per cent in 2016/17, said the statement.
It further indicated that the expectation for the 2017/18 budget is the reinforcement of the MTEFs strategy of targeting consumptive and non-productive expenditure cuts.
The MTEF identified a N.dollars 5.5 billion cut, of which N.dollars 4.5 billion represents operational and development expenditure that has been suspended.
The remaining N.dollars 1 billion will be reallocated to priority areas including N.dollars 350 million for the completion of the Neckartal Dam; N.dollars 150 million for drought relief; N.dollars 150 million for the welfare of vulnerable children and N.dollars 100 million for mass housing.
Other priority areas are N.dollars 200 million to be split between the University of Namibia and Namibia University of Science and Technology and N.dollars 50 million for the visa stickers project of the Ministry of Home Affairs and Immigration to promote easier business travel.