Almost N$180 million to combat the Foot-and-Mouth Disease outbreak, which threatens livestock farmers, rural livelihoods and export markets, was provided for in the mid-year budget yesterday.
Following the proposal by Prime Minister Elijah Ngurare recently, an additional N$5 million was allocated to sustain the National Sanitary Pad Initiative for vulnerable learners.
These are some of the major developments announced by Finance Minister Ericah Shafudah when she tabled the 2026/27 Mid-Year Budget Review in Parliament. “The FY2026/27 mid-year budget was prepared against slower-than-expected economic growth, a downward revision of revenue by N$1.5 billion, rising debt-servicing costs and additional funding requests by Offices/Ministries/Agencies of N$13.1 billion,” Shafudah said.
Government has set aside N$40 million for the Agro-Marketing and Trade Agency to buy surplus grain from local farmers. She said the grain will be added to the national strategic grain reserve ahead of the anticipated El Niño. The allocation forms part of government’s efforts to strengthen food security.
The finance minister said fiscal implications extend beyond government balance sheets because the slower growth threatens employment opportunities and household incomes, while high fuel and food prices continue to squeeze consumers and increase operating costs for businesses.
Fuel relief and education subsidies
Government reported providing nearly N$740 million in fuel-price relief between April and July through fuel levy reductions and price-stabilisation measures. This much-needed intervention helped cushion many households and businesses against fuel costs.
The National Youth Development Fund has grown to N$317 million, with N$110.2 million disbursed for 373 youth-owned projects across all 14 regions. These projects are expected to create approximately 7 110 employment opportunities.
Government also reports that subsidised tertiary education covers registration and tuition for approximately 87 000 qualifying students, easing the financial burden on participating households.
These interventions provide tangible support, but their ultimate impact will depend on effective implementation and whether promised employment opportunities materialise.
Tax relief
For individual taxpayers, one of the most significant developments is what the mid-year review does not announce, namely a new personal income tax adjustment or revised tax brackets. In February, Shafudah proposed reviewing personal income tax rates and thresholds to reduce fiscal drag and improve fairness over two financial years. The main budget also outlined reforms to capital allowances, corporate restructuring, special economic zone incentives and VAT administration.
For businesses, government is reviewing export levy levels, with consultations ongoing. It is also considering zero-rating imported agricultural inputs and equipment for VAT purposes, a measure that could reduce production costs for farmers and potentially ease food-price pressures.
Other proposed business tax measures include accelerated capital depreciation to encourage investment, stronger disclosure requirements for aggressive tax planning, modernised VAT legislation and electronic invoicing to improve compliance and reduce fraud.
Meanwhile, the tax amnesty programme will end on 31 October 2026 as scheduled after more than 28 000 taxpayers regularised their tax affairs. Shafudah yesterday pledged that existing tax repayment arrangements will continue to be honoured.
Economic growth forecast
At the tabling of the National Budget in February this year, government projected economic growth of 3.1% for 2026, following an estimated 2.9% expansion in 2025. The mid-year review now reduces that growth to 2.3% for 2026, although this would still exceed the 1.7% recorded in 2025. This growth is expected to recover gradually to 2.6% in 2027, 3% in 2028 and 3.3% in 2029, according to the Medium-Term Expenditure Framework (MTEF).
However, the deterioration in the mining revenue outlook highlights the country’s continued vulnerability to commodity market fluctuations. This is as mining company taxes and royalties are now projected at N$5.2 billion, down from N$6.1 billion in the main budget.
Perhaps more alarming is the collapse in diamond taxes and royalties, which have fallen drastically from N$5.8 billion in 2023/24 to a projected N$414 million in 2026/27. Government estimates the cumulative shortfall at N$5.3 billion over the three-year period from 2024/25 to 2026/27. This figures reinforces the need to diversify government revenue through agriculture, manufacturing, services, renewable energy and domestic value addition rather than relying heavily on volatile mining receipts.
Total expenditure
Meanwhile, government has increased the budget appropriation from N$87.9 billion to N$88.6 billion, a relatively modest adjustment given the funding pressures facing public institutions. However, total expenditure, including statutory commitments, has been revised slightly downwards from N$106 billion to N$105 billion.
That means the budget deficit is projected at N$16.3 billion, equivalent to 5.5% of gross domestic product (GDP), which is unchanged from the main budget’s deficit forecast. Also, public debt is expected to reach N$201.7 billion, or 68.7% of GDP, while interest payments are projected at N$15.4 billion.
Yesterday’s mid-year budget review, presented eight months after the main budget statement on 26 February, retains the theme ‘People, Productivity and Prudence’ but reveals a more challenging economic picture than that presented at the beginning of the financial year. Shafudah attributed the weaker outlook to slower-than-expected economic performance, lower mining receipts, reduced fuel levies and lower administrative fees. For Namibian households confronting rising living costs and businesses operating under tight margins, fiscal prudence will ultimately be judged not by budgetary targets alone, but by whether it delivers jobs, affordable essentials and improved public services.
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