Civil Society Spells Out Budget Priorities

25 October 2024

Civil society organisations (CSOs) believe the national budget is a powerful tool that can be used more effectively to address systemic poverty, improve living conditions, and promote social equity in Namibia.

The Institute for Public Policy Research (IPPR) today released a new briefing paper, entitled Civil Society & The Budget: Perspectives on Priorities. The paper is being published ahead of the 2024-25 Mid-Year Budget Review to be tabled in the National Assembly by the Minister of Finance and Public Enterprises on 28 October 2024.

The paper summarises civil society submissions and suggestions regarding budget priorities which have been made to the Ministry of Finance and Public Enterprises (MFPE) over the past two years. The submissions were part of a consultative process with the MFPE and the National Planning Commission, which has seen Namibia rise in the public participation rankings in the international Open Budget Survey (OBS).

Some of the main points of these submissions are outlined below. Further details are available in the briefing paper which can be downloaded here.

1. Basic Income Grant (BIG): CSOs have consistently called for a Basic Income Grant to address widespread poverty, noting that current cash grant initiatives are insufficient in scope.
2. Housing and Sanitation: Civil society has highlighted the ongoing housing and sanitation crisis, especially in informal settlements. CSOs advocate for direct funding to local authorities to subsidise plot prices and reduce the growth of informal settlements.
3. Early Childhood Development (ECD): Increased investment in ECD is needed to enhance educational outcomes, as current funding is insufficient in the critical early years of child development.
4. Health Sector: Funding gaps and inefficient financial management, particularly in combating diseases like malaria, were flagged as barriers to achieving effective health outcomes.
5. Support for At-Risk Youth: There is an urgent need for more preventative programmes and support for CSOs that address youth issues, including substance abuse.
6. Informal Sector and SME Support: CSOs highlighted the importance of supporting Namibia’s informal economy and SMEs as they are essential for livelihoods. They recommended that the Namibia Statistics Agency (NSA) actively gather data on the informal sector to guide better government policies.
7. Capital Expenditure and Infrastructure Projects: CSOs raised concerns about the long-term value of infrastructure spending. They advocated for greater consultation and cost-benefit analyses to prevent funds from going to unproductive “white elephant” projects.
8. VAT-Free Sanitary Pads Policy: While CSOs appreciate the VAT removal on sanitary pads (instituted in 2023), they urged further development of this policy to ensure wider access, including providing free sanitary products at all educational facilities.
9. The Fight Against Corruption: Efforts to allocate funds for preventing and investigating corruption often face pushback due to budget constraints, resulting in delays. Although the Witness Protection Act was finally operationalized in 2023, there has been minimal progress in implementing the Whistleblower Protection Act, which has been pending for seven years despite repeated calls for action.
10. Gender-Responsive Budgeting: Despite calls for gender-responsive budgeting over the years, little had been done to make this a reality. The MFPE should take the lead to ensure that gender considerations are mainstreamed into public finance and economic planning.

CSOs have also emphasised the importance of strengthening budget participation mechanisms to enhance government accountability and ensure effective policy implementation.

Please contact IPPR Executive Director Graham Hopwood at director@ippr.org.na if more information is required.