All eyes on Schlettwein as he tables budget

March 6, 2018, 5:06pm

All eyes will be on the finance minister, Calle Schlettwein, as he lays bare the national purse in his budget presentation and analysts have called on for government to create fiscal space and continue on the consolidation tight-rope.

Simonis Storm Securities expects the minister to give insight on how to avoid declining government revenue amidst the dilemma faced with introducing new taxes amid an economy that is trapped in a technical recession.

“Furthermore, Bank of Namibia (BON) increased the borrowing plan for the FY2017/2018 by N$1.2bn during January to cover the existing shortfall on bonds and to further improve the cash-flow position of the Government,”

“We will be keen to know the government’s stance on two critical issues: fiscal consolidation and revenue collection in a way that does not have a negative impact on economic growth and at the same time maintain or reduce the debt burden,” says the firm’s junior analyst, Indileni Nanghonga.

The FY2018/19 budget will be tabled within the context of balancing the negative and positive impacts caused by fiscal consolidation, she adds.

In spite of a poor national pass rate and squabbles within the public health sector, economist, Klaus Schade, maintains that Schlettwein should not waver from giving sustainable allocations to education and health.