Namibia’s 2025/26 budget set at N$106.3 billion

By: Hertha Ekandjo

The Minister of Finance, Ericah Shafudah, tabled Namibia’s national budget for the 2025/26 financial year in Parliament this afternoon, outlining a total expenditure of N$106.3 billion.

According to Shafudah, the budget comprises N$79.8 billion for operational expenditure, N$12.8 billion for development expenditure—including N$3.2 billion funded through external loans and grants and N$13.7 billion allocated for interest payments. This marks a 4.9% increase from the revised estimates of the previous financial year.

The operational budget is projected to grow by 2.3% compared to the FY2024/25 mid-term estimates, reaching N$79.8 billion. Meanwhile, the development budget has seen a significant increase of 22.6%, rising to N$12.8 billion. This includes externally funded projects worth N$3.2 billion. As a share of GDP, the development budget now stands at 4.6%, up from 4.2% in the previous year.

Debt servicing remains a key concern, with N$13.7 billion set aside to meet statutory obligations. This amount accounts for 14.8% of government revenue and 4.9% of GDP. Shafudah stressed the need for measures to curb rising debt-servicing costs, highlighting the government’s commitment to keeping public debt on a reduction path while ensuring cost-effective borrowing.