Finance Ministry allocates N$3.9 billion to PSEMAS, NamRA

The Ministry of Finance and Public Enterprises has allocated a total budget of N$2.9 billion towards the Public Service Employee Medical Aid Scheme (PSEMAS) and N$1 billion to the Namibia Revenue Agency (NamRA).

Deputy Minister of Finance and Public Enterprises Maureen Hinda-Mbuende said the allocations are pivotal for effective tax collection and providing good health services to civil servants and their dependents.

This is expropriated from a total budget of N$8.1 billion of which N$430 million is for developmental purposes and N$7.7 billion for operational expenditures. 

“The significant allocation to NamRA underscores the Ministry’s commitment to strengthening revenue mobilisation efforts and enhancing tax compliance mechanisms. By providing adequate resources to NamRA, we aim to bolster its capacity to enforce tax laws, combat tax evasion and avoidance, and streamline customs procedures,” Hinda-Mbuende said.

NamRA has been commended for its tax collection operations and has collected about N$52 billion in the 2023/24 financial year.

These collections, Hinda-Mbuende said, play a vital role in financing government operations and funding key public services.

In addition, the Minister said N$1.4 billion is designated as a once-off tax legacy liability assistance to selected State-Owned Enterprises (SOEs).

“This allocation represents a significant commitment by the Ministry to address tax liabilities that may impede the operations, financial stability and ongoing concern of these selected SOEs,” said Hinda-Mbuende.

With regards to PSEMAS, she said the N$2.9 billion budget provision is critical as reforms are underway to enhance the management of the fund and ensure its long-term sustainability.

“Furthermore, the significant allocation to PSEMAS comes at a pivotal time when reforms are being implemented to improve the management and financial sustainability of the scheme. These reforms are aimed at enhancing efficiency, reducing operational costs, and strengthening governance mechanisms to safeguard the integrity of the fund,” she stated.

Furthermore, the Deputy Minister said N$692 million has been allocated for subsidy payments to several commercial Public Enterprises (PEs). This is to boost vital sectors of the economy and foster the growth and efficacy of PEs in fulfilling their mandates.

The amounts are spread across with TransNamib receiving N$300 million, Roads Contractor Company (RCC) N$55 million, the Namibia Industrial Development Agency (NiDA) N$30 million, Namibia Institute of Pathology (NIP) N$107 million, MeatCo N$100 million and the Agro-Marketing and Trade Agency (AMTA) getting N$72 million.

“These subsidy payments are aimed at providing financial support to PEs for various purposes such as infrastructure development, capacity building, and operational expenses. Each allocation is tailored to address the specific needs and priorities of the respective PEs, ensuring that they have the necessary resources to fulfill their mandates and contribute to the socio-economic development of Namibia,” she explained.

She said N$50 million is awarded to the Central Procurement Board of Namibia (CPBN), and N$6.5 million is proposed for activities of the Public Procurement Review Panel.

Furthermore, Hinda-Mbuende said N$77 million is allocated to Agribank as a dedicated subsidy programme for farmers whose operations have been adversely affected by the impending drought. 

A further N$4 million is earmarked for the undertaking of extensive national consultations on the Public Finance Management Bill (PFM Bill) and the amendments to the Regulations of the Public Procurement Act, while N$181 million has been earmarked for political parties.

“The allocation supports the functioning of political parties as essential components of a vibrant democracy. Political parties play a crucial role in representing diverse interests, articulating policy positions, and engaging citizens in the political process. The allocation ensures that political parties have the resources necessary to carry out their activities, including organising campaigns, conducting outreach, and participating in electoral processes,” she explained. 

 

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