Finance Minister Erica Shafudah has reallocated N$1.2 billion in her mid-term budget review, tabled in the National Assembly this afternoon.
The bulk of the reallocation will go towards the government's Subsidised Free Tertiary Education, during the first quarter of next year.
Tabling the Appropriation Amendment Bill in the National Assembly, Shafuda pointed out that the mid-year budget review process is aimed at improving the effectiveness of resource allocations and ensuring that the government remains on course to achieve planned annual development priorities.
Shafuda stated that during consultations for the Mid-Year Budget Review in September this year, additional expenditure requests of more than N$11 billion were made.
This includes N$8.2 billion for operational expenditure and N$2.9 billion for the development budget.
"The requests were carefully reviewed in accordance with a defined set of criteria for unforeseen and unavoidable expenditures. The expenditure analysis reveals that certain OMA funding plans are progressing as expected, while others may face the possibility of under- or overspending. In addressing these concerns within the revised revenue constraints, prioritisation of activities was considered, and a reallocation of funds within and between the appropriated votes' ceilings."
Shifuda added that, given the low execution rates on capital projects, a total of N$826.4 million was identified for reallocation, with N$378.6 million in potential realised savings from vacant positions across the public service for the financial year.
"Therefore, in keeping with the fiscal sustainability narrative, we balanced these expenditure requests against the available resource envelope. As a result, the FY2025/26 Appropriation Amendment Bill provides for the reallocation of N$1.20 billion, as follows: An amount of N$814 million is proposed for consideration to the Ministry of Education, Innovation, Youth, Sports, Arts and Culture, of which N$663 million is to cater for registration fees and tuition fees for the first quarter (January-March 2026) in line with the approved stance on Subsidised Free Tertiary Education. The other N$151 million is for the recruitment of 665 teachers. · A total of N$185 million was added to the Ministry of Health and Social Services' recruitment for 1,537 health personnel. · An amount of N$61 million is availed to the Ministry of Finance under Contingency Provision."
An additional N$50 million will be allocated to Vote: President to cater for personnel expenditure and related goods and services.
The National Emergency Disaster Fund, under the Office of the Prime Minister, is recommended to receive an additional N$50 million to cater for the increased turnout of beneficiaries in the concluded drought relief programme.
The ECN will also receive N$30 million to cover a shortfall caused by additional by-elections during the financial year 2025/26.
The National Assembly is to receive an additional N$15 million to cater for a shortfall on personnel expenditure and Parliamentary Committees' oversight, and an additional N$30 million to purchase a building for Members of Parliament's office accommodation.