Windhoek: Government is struggling to execute its 2025/26 budget, with the mid-year review exposing weak spending in development programmes and calling for reform in procurement and revenue planning. At a stakeholder consultation session attended by civil society, youth groups, and officials from various ministries here on Thursday, Finance Minister Ericah Shafudah disclosed that the operational budget set at N.dollars 79.8 billion had achieved only about 54 per cent execution by September, while development spending lagged 'well below' 50 per cent.

According to Namibia Press Agency, Shafudah emphasized the need for consultations with ministries to understand the slow implementation and explore ways to accelerate progress. She highlighted delays in procurement processes and the necessity for fairness in allocations as significant issues. The budget preparation was aligned with the latest National Development Plan (NDP6), focusing on economic transformation, human development, sustainability, and governance, and ministries and agencies are expected to align their programmes with these pillars.

Feedback from ministries indicated that procurement rules and bureaucratic review mechanisms are causing delays in project launches, with some departments experiencing tension over allocation decisions. Shafudah challenged ministries to address reasons behind declining revenue due to weak diamond demand and reduced economic output.

In response, the Ministry of Finance is in the process of drafting amendments to the Procurement Act to tackle bottlenecks and enhance spending efficiency. Additionally, proposed tax reform bills are under review before being submitted to the National Assembly. Shafudah dismissed the notion that citizens require more high-level figures, instead urging the translation of budget numbers into tangible service delivery in communities. The consultations are expected to inform the final budget presented to Parliament.