Finance Minister Erica Shafudah has defended the reallocation of funds in the mid-year budget review.
She said N$685 million redirected from underperforming projects was not lost money, but funding that could not be utilised within the current financial year.
Shafudah gave her response to contributions by MPs.
She said the funds were redirected to areas where they could be spent, while the government prioritised projects that were ready for implementation and the completion of ongoing projects.
Addressing concerns about the management and depletion of PSEMAS benefits, the minister said the government was strengthening fiscal discipline through improved claims verification and investigations into suspected fraud and abuse.
She confirmed that the scheme remains subject to annual audits and that the government is considering introducing a claims cap for service providers.
On Foot-and-Mouth Disease (FMD), she said N$179 million had been allocated towards containing and managing the outbreak. She warned that lifting movement restrictions before the disease is contained could jeopardise Namibia's access to premium export markets, including the European Union and the United Kingdom.
"Namibia has commenced bilateral trade negotiations with potential trading partners to explore opportunities for resumption of trade in livestock products. In the agriculture sector, NABU members compared the 1.5 billion budget for agriculture with N$1.9 billion for international relations and without any context. Support to agriculture runs through several roads and entities. The Agribank loan has also advanced N$366.9 million towards agriculture. The government also supports agriculture through the NAMFISI loan that was acquired from ADB with the completion of that loan by December 2027."
On the housing crisis, she said the government is considering recommendations from the Presidential Task Force on Housing and Land Delivery.
She announced that the National Housing Enterprise is ready to utilise a financing facility of approximately N$1.5 billion to address housing needs, while government is working on regulations to facilitate the use of alternative building materials.
She assured Members of Parliament that their proposals and recommendations had been recorded for consideration during the next Medium-Term Expenditure Framework, although they could not be accommodated in the current mid-year review.