Namibia in Numbers: Where the money comes from andwhere it goes, FY ‘26/27

The mid-year budget review tabled on 22 October lowered expected growth for 2026 to 2. 3% from the 3. 1% projected in February, mainly because diamond output is forecast to fall by more than a fifth this year. Revenue was revised down by N$1. 5 billion to N$88. 1 billion, only 0. 8% more than the government collected last year. Mining accounts for much of the weakness, with diamond taxes and royalties expected to bring in N$414 million this year compared with N$5. 8 billion in the 2023/24 financial year. Total spending was cut by N$988 million to N$105. 0 billion, mostly through lower interest estimates and slower loan-funded projects rather than savings across ministries. For every N$100 the government spends this year, it collects about N$84 and borrows nearly all of the rest, while N$17. 50 of every N$100 collected goes to interest.

Development spending on roads, rail and other infrastructure has fallen to N$6. 7 billion (6. 4% of total spending), its lowest share since the 1990/91 financial year, with only 42% spent by mid-year. The review also set aside N$179 million to contain foot-and-mouth disease, almost the same as the N$180 million allocated to the Presidency for sport facilities and security. The deficit is now N$16. 3 billion (5. 5% of gross domestic product (GDP)) and government debt has been revised up by N$7. 9 billion to N$201. 7 billion, or 68. 7% of GDP. The primary balance, which excludes interest, has moved from a planned N$438 million surplus to a N$881 million deficit. Even with more debt, the review lowers this year’s interest bill by N$800 million and cuts it again in each of the next two years, which does not match how the government is borrowing in the market. It has raised about N$19. 7 billion so far this year, partly through new longer-dated bonds with…