Finance Minister Ericah Shafudah on Thursday tabled a N$106.3 billion national budget for the 2025/26 financial year, marking a 4.9% increase from the previous year’s revised estimates.
The proposed budget includes N$79.8 billion in operational expenditure, N$12.8 billion in development spending, and N$13.7 billion in interest payments.
“In this context, I am tabling before this August house, a budget of N$106.3 billion for FY2025/26. The operational budget is estimated at N$79.8 billion, growing by 2.3% over the FY2024/25 mid-term estimates,” she said.
Development expenditure received a significant boost to address infrastructure gaps.
“To continue addressing infrastructure bottlenecks that weigh against our growth potential, the development budget has increased by 22.6% to N$12.8 billion from the revised estimates for FY2024/25,” Shafudah said.
She added that of the development budget, N$3.2 billion will be funded through external loans and grants.
As a ratio of GDP, the development budget is equivalent to 4.6%, an improvement from 4.2% in the prior year.
Furthermore, the government aims to achieve a positive primary budget balance of 0.3% of GDP during FY2025/26, with the budget deficit projected at N$12.8 billion in nominal terms, equivalent to 4.6% of GDP.
“In the interest of pursuing fiscal sustainability and debt stabilisation, we aim to maintain a primary surplus and consequently the budget deficit at an average of 4.0% of GDP over the MTEF,” she said.
Key Allocations
The largest shares of the budget are allocated to education, health, infrastructure, and economic development.
“The FY2025/26 Budget prioritised allocations to promote economic development, protect social spending while promoting domestic food production. In this context, the budget allocations are aimed primarily to sustain ongoing operations, while addressing pertinent emerging issues,” Shafudah said.
A combined N$24.8 billion has been earmarked for Education, Innovation, Arts and Culture, with a total of N$76.1 billion allocated over the Medium-Term Expenditure Framework (MTEF).
Other key allocations in the social sector include N$473.6 million for the Ministry of Gender Equality and Child Welfare, and N$1.5 billion over the MTEF.
The Vote of Sport, Youth and National Service has been allocated N$1.3 billion in FY2025/26. This includes N$200 million for the construction of Category 2 stadiums, another N$200 million for basic sports infrastructure, and N$50 million for sports leagues.
“The allocation also considered support for various youth programmes for skills development and capacity building,” Shafudah said.
The Ministry of Health and Social Services has been allocated N$12.3 billion for the upcoming financial year, with N$37.5 billion planned over the MTEF. This includes N$780 million for the development of health infrastructure.
“The end goal is to reduce congestion at State Hospitals and improve the quality of services broadly. Accordingly, consideration has also been made for additional personnel in the health sector as well as pharmaceuticals and clinical supplies,” she said.
Infrastructure and Economic Development
The Ministry of Works and Transport receives N$2.7 billion for 2025/26 and N$6.9 billion over the MTEF.
“In addition to accelerating railway upgrades, the allocation will support the completion of ongoing road projects, including rural feeder roads to schools and clinics. Over the MTEF, it will also benefit from external loans to upgrade the Kranzberg–Otjiwarongo railway section and other key roads,” Shafudah said.
The Ministry of Agriculture, Water and Land Reform receives N$2.6 billion, including funding for the Green Scheme Programme and Phase II of the Neckartal Dam Irrigation Project.
Additionally, the Vote of Water and Marine Resources is allocated N$956.5 million, with N$3.2 billion set aside for the sector over the MTEF.
The Ministry of International Relations and Trade is allocated N$1.2 billion in FY2025/26 and a total of N$3.8 billion over the MTEF.
The Ministry of Mines, Energy, and Industry is set at N$939.5 million in FY2025/26 and N$2.8 billion over the MTEF.
The Ministry of Environment, Forestry, and Tourism is allocated N$797.6 million, while the Information and Communication Technology Ministry receives N$898.5 million for the year.
Meanwhile, the Ministry of Finance itself has been allocated N$14.6 billion, including N$7.2 billion earmarked for social grants.
“A total of N$100.0 million has been budgeted for the Meat Corporation of Namibia (MeatCo). Meanwhile, N$320 million has been provided for TransNamib in line with the ongoing exercise to improve efficiencies and stem infrastructure and operational challenges,” Shafudah said.
A further N$350 million is reserved in the Contingency Fund to ensure readiness for emergencies and unforeseen expenditures.
Governance and Security
In the governance and security sector, the Anti-Corruption Commission is allocated N$116.5 million, with a total of N$407.1 million over the MTEF.
The Ministry of Home Affairs, Immigration, Safety, and Security receives N$7.9 billion for the fiscal year, including N$80.3 million to roll out biometric systems.
“The vote will utilise N$23.9 billion over the MTEF,” Shafudah said.
The Ministry of Defence and Veterans Affairs receives N$7.5 billion in 2025/26, with a projected N$23.2 billion over the MTEF.
The judiciary and legal sectors have also received significant allocations, with the Judiciary Vote receiving N$601 million and Justice N$494.1 million.
The Ministry of Urban and Rural Development is allocated N$2.7 billion and N$8.5 billion over the MTEF.
The Electoral Commission of Namibia (ECN) receives N$438 million to support preparations for the Regional Council and Local Authority Elections.
“This is to ensure smooth and timely voter’s registration as well as to undertake the regional council and local authority elections towards the end of the year,” Shafudah said.
Moreover, the Office of the Prime Minister has been allocated N$636.0 million in FY2025/26 and N$1.9 billion over the MTEF.
The National Assembly receives N$398.2 million and N$1.2 billion over the MTEF, while the Office of the President is allocated N$1.5 billion and N$4.6 billion over the MTEF.
