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Contents Foreword Republic of Namibia n o i t a d i l o s n o C l a c s i F h t w o r G - o r P a s d r a w o T MEDIUM-TERM EXPENDITURE FRAMEWORK 2016/17 – 2018/19 CONTENTS FOREWORD ............................................................................................................................................. 3 INTRODUCTION ....................................................................................................................................... 4 1. Global Fiscal Policy Stance .............................................................................................................. 5 2. FINANCIAL AND CAPITAL MARKET DEVELOPMENT ........................................................................ 5 PUBLIC FINANCE MANAGEMENT REFORMS ........................................................................................... 5 2.1 Public Expenditure, Transparency and Accountability ............................................................... 5 2.2 Status on the Public Finance Management Bill .......................................................................... 6 2.3 Public Procurement Act .............................................................................................................. 6 TOTAL EXPENDITURE FOR THE 2016/17-2018/19 MTEF ........................................................................ 7 Global Budget Ceilings ............................................................................................................................ 7 Total Development Budget ..................................................................................................................... 9 Total Operational Budget ...................................................................................................................... 11 VOTE 01: OFFICE OF THE PRESIDENT ............................................................................................... 14 VOTE 02: OFFICE OF THE PRIME MINISTER ...................................................................................... 22 VOTE 03: NATIONAL ASSEMBLY ....................................................................................................... 37 VOTE 04: OFFICE OF THE AUDITOR-GENERAL .................................................................................. 44 VOTE 05: HOME AFFAIRS AND IMMMIGRATION ............................................................................. 53 VOTE 06: SAFETY AND SECURITY ...................................................................................................... 61 VOTE 07: INTERNATIONAL RELATIONS AND COOPERATION ............................................................ 70 VOTE 08: DEFENCE ............................................................................................................................ 81 VOTE 09: FINANCE ........................................................................................................................... 91 VOTE 10: EDUCATION, ARTS AND CULTURE .................................................................................. 107 VOTE 11: NATIONAL COUNCIL ........................................................................................................ 138 Vote 12: GENDER EQUALITY AND CHILD WELFARE ....................................................................... 143 VOTE 13: HEALTH AND SOCIAL SERVICES ...................................................................................... 155 VOTE 14: LABOUR, INDUSTRIAL RELATIONS AND EMPLOYMENT CREATION ............................... 176 VOTE 15: MINES AND ENERGY ....................................................................................................... 190 VOTE 16: JUSTICE ........................................................................................................................... 206 VOTE 17: URBAN AND RURAL DEVELOPMENT .............................................................................. 216 VOTE 18: ENVIRONMENT AND TOURISM ..................................................................................... 230 VOTE 19: INDUSTRIALIZATION, TRADE AND SME DEVELOPMENT ............................................... 243 1 VOTE 20: MINISTRY OF AGRICULTURE, WATER AND FORESTRY ................................................... 272 VOTE 21: OFFICE OF THE JUDICIARY ............................................................................................... 300 VOTE 22: MINISTRY OF FISHERIES AND MARINE RESOURCES ....................................................... 305 VOTE 23: DEPARTMENT OF WORKS ............................................................................................... 318 VOTE 24: DEPARTMENT OF TRANSPORT ........................................................................................ 331 VOTE 25 MINISTRY OF LAND REFORM .......................................................................................... 342 VOTE 26: NATIONAL PLANNING COMMISSION ............................................................................... 358 VOTE 27: MINISTRY OF SPORT, YOUTH AND NATIONAL SERVICE .................................................. 368 VOTE 28: ELECTORAL COMMISSION OF NAMIBIA .......................................................................... 387 VOTE 29: MINISTRY OF INFORMATION AND COMMUNICATION TECHNOLOGY…………………………400 VOTE 30: ANTI-CORRUPTION COMMISSION .................................................................................. 408 VOTE 31: VETERANS AFFAIRS ......................................................................................................... 418 VOTE 32: MINISTRY OF HIGHER EDUCATION, TRAINING AND INNOVATION ................................ 428 VOTE 33: MINISTRY OF POVERTY ERADICATION AND SOCIAL WELFARE ....................................... 443 VOTE 34: MINISTRY OF PUBLIC ENTERPRISES ................................................................................. 452 VOTE 35: OFFICE OF THE ATTORNEY-GENERAL .............................................................................. 461 GOVERNMENT FINANCIAL OPERATIONS FOR THE 2016/17 – 2018/19 MTEF ................................... 466 2 FOREWORD 3 INTRODUCTION The Medium term Expenditure Framework (MTEF), a three year rolling budget, provides the linking framework that allows expenditures to be driven by policy priorities and promote effective budgeting discipline. The MTEF presents the costed activities to be funded during the three financial years, 2016/17 – 2018/19. It captures the macroeconomic development of the preceding year, expenditure allocation to various programmes & activities of all Offices, Agencies and Ministries (O/M/As). It further includes the Medium Term Plans (MTPs) of O/M/As. For the next three financial years MTEF intends to facilitate greater macroeconomic balance; improve sectoral resource allocation; greater budgetary predictability for O/M/As; and more efficient use of public funds. This MTEF book has been drawn up in times of slow and fragile global economic development especially in emerging and developing economies. As a result of Public Financial Management pose a challenge to most countries around the world more especially with regards to optimising resource allocations and maintaining fiscal prudence. MACROECONOMIC POLICY DEVELOPMENT AND OUTLOOK FOR THE MTEF The world economic landscape remains weak and uncertain in 2015. According to the IMF global economy is estimated to have slowed to 3.1 percent in 2015, compared to 3.4 percent in 2014. Growth for 2016 is estimated to be 3.4 percent and a further 3.6 percent in 2017. The drag on growth in 2015 is mainly due to the slowdown in Emerging Market and Developing Economies, particularly the slowdown in China, Brazil and Russia. Growth prospects for the Sub-Saharan African (SSA) region have diminished significantly over the review period as a result of low commodity prices and tighter global financial conditions. Economic growth for the sub-region is estimated to have slowed significantly to 3.5 percent in 2015, from 5.0 percent in 2014, and is projected to improve marginally to 4.0 percent in 2016 and further to 4.7 percent in 2017. The driving factors accounting for this outlook, namely, the end of a commodity price super cycle and tighter financial market conditions, are expected to remain for a protracted spell in the medium-term The South African economy continues to experience slow economic growth. The growth estimate for 2015 has been reduced down to only 1.3 percent, down from the earlier estimate of 2.0 percent, with the outlook for 2016 and 2017 projected at 0.7 percent and a slight rebound to 1.7 percent, respectively. On the other hand, Angola has moderated to 3.5 percent over the 2015 and 2016, amid the prevailing low oil price shock. Namibia’s economy grew by 6.4 percent in 2014, compared to the 5.7 percent recorded in 2013. This result compares well with the SSA regional economic performance and was supported by a conducive domestic policy environment and sustained private sector investment activity. For 2015, growth in the economy is estimated to have slowed to 4.5 percent, mainly on account of subdued commodity prices and the effects of the continued drought in the agricultural sector, especially for crop farming. 4 1. Global Fiscal Policy Stance Fragility continues to characterize the global fiscal environment. This is against the backdrop of elevated public debt levels and a narrowed fiscal space stemming from prolonged expansionary fiscal action aimed at lifting the hitherto weak global
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