The Minister of Finance and Public Enterprises, Iipumbu Shiimi, says increasing the old-age pension grant to N$2,000 or N$3,000 would cost the state N$10.1 billion a year, which would be more than double the current cost of N$4.8 billion annually.
Shiimi said the deficit would have gone past the N$8.9 billion estimates, increasing it to N$14.2 billion, which is equivalent to 5.1% of the gross domestic product (GDP).
“If this increase was to be effected it could have cost the government an additional N$5.2 billion to the current N$4.8 billion to total N$10.1 billion per year. This is equivalent to the allocation (N$10.9 billion) made to the Ministry of Health and Social Service in FY2024/25 and about 60% (N$18.4 billion) of the allocation to the Ministry of Basic Education and Culture in the same period,” explained Shiimi.
Shiimi was responding to concerns that were raised by various quarters of the public on why the government failed to fulfil late President Hage Geingob’s wishes of having the old-age pension grant increased to N$2,000 or N$3,000.
“In my budget speech in February 2024, I reiterated that we fully recognise the dream of our late President for a significant increase in old-age pension, however, we cannot afford to deliver this dream in one financial year. But we will continue to work towards it with gradual increases over time, as resources permit,” Shiimi reiterated.
Tabling the N$100.1-billion National Budget in February, Shiimi announced an increase of N$200 on the old-age pension, pushing the monthly payable to N$1,600.
Geingob will be remembered for having played a crucial role in increasing the pension grant since taking over in 2015 from N$600 to N$1,000, then to N$1,200 and N$1,400.
