Finance Minister Ericah Shafudah has tabled a budget of N$106.3 billion for the 2025-2026 financial year, the maiden budget of the new administration of President Netumbo Nandi-Ndaitwah. 

The budget, themed "Beyond 35, for a Prosperous Future", marks an increase of 22.6% from the previous year.

For the 2024/2025 mid-year budget review, the budget stood at 101 billion.

The total expenditure consists of N$79.8 billion in operational expenditure and N$12.8 billion in development expenditure, including N$3.2 billion in development projects funded through external loans and grants as well as N$13.7 billion in interest payments.

Shafuda said this budget represents an increase of 4.9% from the revised estimates of the preceding financial year.

The Finance Minister stated that the budget is being presented against a very challenging fiscal environment. 

"From a revenue perspective, we have experienced notable headwinds, which in turn have significantly constrained the available resource envelope during FY2025/26. In this regard, we estimate total revenues of N$92.6 billion for FY2025/26, a moderate increase of only 1.9% from the revised estimates of the previous year. The substantial strain on revenues emanated from a N$6.9 billion reduction in SACU receipts, which is confirmed at N$21.1 billion. Similarly, activities in the diamond sector remain subdued, resulting in muted contributions to the fiscus." 

However, value-added tax (VAT) is estimated to increase by N$2.6 billion, compared to the revised estimates for the previous financial year, while income tax on individuals is estimated to increase by N$1.8 billion, and non-mining company taxes are estimated to increase by N$1.3 billion over the same period.

The government has also committed to gradually lowering public debt and ensuring that any future borrowing is done in the most affordable way possible.

"On balance, we aim to achieve a positive primary budget balance of 0.3% of GDP during FY2025/2026. Subsequently, the budget deficit is projected at N$12.8 billion in nominal terms, equivalent to 4.6% of GDP. In the interest of pursuing fiscal sustainability and debt stabilisation, we aim to maintain a primary surplus and consequently the budget deficit at an average of 4.0% of GDP over the MTEF."

The Ministry of Finance has allocated the largest portion of its N$106.3 billion budget for the 2025/2026 financial year to the Ministry of Health and Social Services with N$12.3 billion, the Ministry of Education, Innovation, Arts and Culture with N$24.8 billion and lastly the Ministry of Finance with N$14.6 billion.