Finance Minister Iipumbu Shiimi on Tuesday tabled the 2022/23 midterm budget review of N.dollars 65.6 billion, amidst a backdrop of significant negative developments in the global and regional economy which are challenging the domestic macroeconomic environment.

Tabling the N.dollars 65 558 877 000 budget in the National Assembly, Shiimi said several substantial external shocks have emerged including negative spillovers from the conflict in Ukraine, therefore the midterm budget review is aimed at adopting a responsive macro-fiscal policy framework – both to safeguard the most vulnerable members of society and to chart the pathway from the precarious economic and fiscal environment.

Shiimi explained that the budget aims to enhance fiscal sustainability and allocative efficiency with available resources and to propose the Appropriation Amendment Bill to give effect to expenditure realignments. It is also to provide the macroeconomic and fiscal context, make advance announcements on the budgetary framework as well as government spending priorities for the next budget and Medium Term Expenditure Framework (MTEF).

The minister indicated that the Namibian economy is expected to grow by 2.8 per cent in 2022, before expanding further by 3.4 per cent in 2023, noting that the projected growth in 2022 will be anchored by output from primary industries and tertiary industries on the back of a strong recovery in mining activities.

“Risks to the domestic economy remain elevated and the near-term fiscal policy path continues to be clouded by pressure from the lingering effects of the pandemic and further compromised by the economic consequences of the conflict in Ukraine, as well as elevated global inflation,” he noted.

Shiimi further indicated that secondary industries are still projected to contract, in line with expected declines in electricity production and the construction sector, despite positive growth in manufacturing activities.

He equally noted that the primary focus of fiscal policy in the near to medium term would be to shield the economy from the impact of the spike in international energy and food prices.

As such, measures to alleviate cost of living pressures, protect vulnerable members of society and preserve social cohesion will be prioritised.

Source: The Namibian Press Agency