Finance Minister Ericah Shafudah tabled Namibia’s 2026/27 Mid-Term Budget Review in the National Assembly on Thursday, 22 October, delivering an update on government revenue, borrowing requirements, and fiscal implementation halfway through the fiscal year.
Finance minister Ericah Shafudah formally addressed the National Assembly at 14h30 on Thursday, 22 October, outlining revenue collected, expenditure incurred, and the current state of public finances.
Shafudah Tables Review Amid Shortfall
The mid-term review measures progress against the original N$104 billion national budget presented by the Finance Ministry on 26 February 2026.
Finance Minister Ericah Shafudah tabled Namibia’s 2026/27 Mid-Term Budget Review.
That initial fiscal plan projected revenue of N$89.8 billion.
The plan projected total expenditure of N$104 billion.
This resulted in a projected N$14.2 billion gap between what the government takes in and what it spends.
The review evaluates whether spending and revenue collection remain aligned with initial projections while addressing high public debt and limited fiscal space.
#Namibia: FY26/27 mid-year budget review. #ThinkAfrica
State Allocation of Public Funds
Tax income and payments from the Southern African Customs Union revenue sharing pool provide the majority of government income, while the deficit is covered through borrowing.
According to Cirrus Capital economist Ida Williams, in the 2026/27 budget, the government planned to spend N$104.1 billion. Broken down into simple spending categories for every N$100 disbursed by the state:
- N$38.50 goes toward paying the salaries of teachers, nurses, and other public servants.
- N$28.70 is transferred to state-owned enterprises, regional and local councils, and distributed to individuals through social grants.
- N$9.60 covers operational goods and services ranging from electricity to consulting services.
- N$7.60 is designated for capital spending, funding long-term public assets such as roads, schools, clinics, and equipment.
- N$15.60 goes directly toward interest and borrowing expenses.
Pressures Facing Domestic Economy
The current financial year has faced externalities including two major ongoing conflicts, an expected drought, and an outbreak of foot-and-mouth disease inside the country.
These developments require budget revisions to allocate funding toward addressing their impact on the domestic economy.