The Bank of Namibia (BoN) projects an increase in the government's income as well as a narrowing of the budget deficit for the 2023–24 financial year.

In its June 2023 quarterly report, the central bank says the government's debt is expected to decline to 4,6% of the Gross Domestic Product from 5,1% in the previous financial year.

Revenue collection is expected to increase by 16,5% to N$74.7 billion, owing to a significant increase in SACU receipts, coupled with a rise in company and individual taxes as well as value-added tax.

Revenue from SACU is estimated to rise by 71% to N$24 billion.

The declaration of N$2.5 billion by Nampost and Telecom Holdings last month, as well as the anticipated dividends from Namdia, the Bank of Namibia, and Namdeb Holdings, are expected to further boost revenue in the 2023–24 financial year to N$79.8 billion.

Expenditure is expected to rise by 13% this financial year to cater for a once-off allocation for the National Population and Housing Census.

The other additional expenditure is the mandatory registration of voters.

The budget deficit is expected to further decline to 3,8% of GDP in the 2025–26 financial year, mainly due to a rapid rise in revenue.

The total government debt stood in the fourth quarter of the 2022–23 financial year at N$142 billion, compared to N$125.6 billion during the same period the previous year.

N$105.8 billion of the total is domestic debt.

External debt, the quarterly report says, increased due to exchange rate depreciation and the disbursement of an African Development Loan as well as a N$1.4 billion loan from the German Development Bank, KFW.

Domestic loan guarantees have also increased by 4,8% to N$1.8 billion.

The rise is mainly due to guarantees issued by the government to the transport and agriculture sectors, as well as development finance institutions.

The agriculture sector dominated domestic loan guarantees at 47% in the fourth quarter of the 2022/23 financial year.