The National Planning Commission (NPC) says execution of the national development budget reached 48% by the end of November 2025, following a series of reviews aimed at strengthening alignment between capital projects and national priorities under the Sixth National Development Plan (NDP6).
The development budget for the current financial year totals N$11.8 billion, of which N$9.6 billion is funded from government-generated revenue and N$2.2 billion from development assistance.
The NPC, which is responsible for formulating the development budget, said the Development Budget Book for the current Medium-Term Expenditure Framework was successfully compiled, setting out planned government-funded capital projects across various sectors.
The commission said it participated in the mid-term budget review held jointly with the Ministry of Finance in September 2025, which focused on implementation progress and challenges affecting project delivery.
Between 27 October and 7 November 2025, the NPC conducted a comprehensive assessment of all capital projects through consultations with offices, ministries and agencies.
The exercise reviewed implementation progress and evaluated the alignment of projects with NDP6 priorities.
According to the NPC, lessons drawn from the assessment are expected to improve the efficiency and effectiveness of future development budgets.
In October, Finance Minister Ericah B. Shafudah increased the FY2025/26 operational budget by N$826 million to N$80.6 billion, while the development budget was reduced from N$9.6 billion to N$8.8 billion.
Shafudah said the 9.38% reduction followed the mid-year budget review in September 2025, during which additional expenditure requests amounting to N$11.1 billion were submitted, including N$8.2 billion for operational spending and N$2.9 billion for development projects.
She said the requests were assessed against strict criteria for unforeseen and unavoidable costs, with funding reallocated within and across votes after some offices, ministries and agencies showed risks of under- or overspending.
