Table of Contents 1.0 INTRODUCTION
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Table of Contents 1.0 INTRODUCTION.................................................................................................. 3 2.0 POLICY FRAMEWORK ..................................................................................... 4 3.0 FISCAL POLICY DEVELOPMENTS FOR 2008/09 – 2010/11 ....................... 5 4.0 FISCAL POLICY OUTLOOK 2011/12 – 2013/14 ............................................. 7 5.0 PUBLIC FINANCE MANAGEMENT .............................................................. 24 6.0 MEDIUM TERM PLANS ................................................................................... 30 OFFICE OF THE PRESIDENT.................................................................................... 32 OFFICE OF THE PRIME MINISTER ........................................................................ 38 NATIONAL ASSEMBLY .............................................................................................. 49 OFFICE OF THE AUDITOR-GENERAL .................................................................. 54 MINISTRY OF HOME AFFAIRS AND IMMIGRATION ....................................... 65 DEPARTMENT OF POLICE ....................................................................................... 74 MINISTRY OF FOREIGN AFFAIRS.......................................................................... 84 MINISTRY OF DEFENCE ........................................................................................... 90 MINISTRY OF FINANCE ............................................................................................ 96 MINISTRY OF EDUCATION .................................................................................... 115 NATIONAL COUNCIL ............................................................................................... 131 MINISTRY OF GENDER EQUALITY AND CHILD WELFARE ........................ 136 MINISTRY OF HEALTH AND SOCIAL SERVICES ............................................ 144 MINISTRY OF LABOUR AND SOCIAL WELFARE ............................................ 151 MINISTRY OF MINES AND ENERGY .................................................................... 159 MINISTRY OF JUSTICE ............................................................................................ 166 MINISTRY OF REGIONAL AND LOCAL GOVERNMENT, RD ....................... 175 MINISTRY OF ENVIRONMENT AND TOURISM ................................................ 194 MINISTRY OF TRADE AND INDUSTRY ............................................................... 208 MINISTRY OF AGRICULTURE, WATER AND FORESTRY ............................. 216 NAMIBIA CORRECTIONAL SERVICE ................................................................. 234 FISHERIES AND MARINE RESOURCES .............................................................. 238 DEPARTMENT OF WORKS ..................................................................................... 246 DEPARTMENT OF TRANSPORT ............................................................................ 254 MINISTRY OF LANDS AND RESETTLEMENT ................................................... 268 NATIONAL PLANNING COMMISSION ................................................................ 276 MINISTRY OF YOUTH, NATIONAL SERVICE, SPORT AND CULTURE ...... 297 ELECTORAL COMMISSION OF NAMIBIA ......................................................... 307 MINISTRY OF INFORMATION AND COMMUNICATION TECHNOLOGY . 313 ANTI-CORRUPTION COMMISSION ...................................................................... 321 MINISTRY OF VETERANS AFFAIRS .................................................................... 325 APPENDIX 1 - SUMMARY TABLE FOR THE MTEF 2011/12 – 2013/14 ........... 333 i Table of Contents List of Tables TABLE 1: BUDGET ALLOCATIONS BY SECTOR ...................................................................................................................... 8 TABLE 2: INTERVENTIONS BY SECTORAL CLASSIFICATION ...................................................................................................... 9 TABLE 3: OPERATIONAL BUDGET CEILINGS ...................................................................................................................... 16 TABLE 4: DEVELOPMENT BUDGET CEILINGS .................................................................................................................... 18 TABLE 5: GLOBAL BUDGET CEILINGS 2011/12 - 2013/14 ............................................................................................... 19 TABLE 6: EXPENDITURE FOR PROPOSED MTEF ................................................................................................................ 20 TABLE 7: INVESTMENT BY PUBLIC INSTITUTIONS ............................................................................................................... 21 TABLE 8: ON-GOING PROJECTS TO RECEIVE FUNDS FROM EXTERNAL BORROWING, 2011/12-2013/14 ................................... 21 TABLE 9: NEW PROJECTS TO RECEIVE FUNDS FROM EXTERNAL BORROWING, 2011/12-2013/14 ........................................... 22 TABLE 10: BUDGET BALANCE ....................................................................................................................................... 22 TABLE 11: TOTAL PUBLIC DEBT, MTEF 2010/11-2012/13 ............................................................................................ 23 List of Figures FIGURE 1: SECTORAL ALLOCATIONS ................................................................................................................................. 9 FIGURE 2: INTEREST PAYMENTS, MTEF 2011/12-2013/14............................................................................................. 23 ii 1.0 Introduction In 2001, Namibia adopted a three year rolling budget approach, commonly known as the Medium Term Expenditure Framework (MTEF). In this regard, Namibia is celebrating the tenth anniversary of the introduction of this public sector reform for the budget process. The MTEF was introduced to prevent the narrow one-year planning horizon in which the budgets were formulated. The MTEF is the key budget document that sets out government expenditure plans for the next three financial years. The main objectives of the MTEF are as follows: To improve the allocation of resources to government‟s priorities by extending the planning period; To improve the financial planning in the Votes by increasing the predictability of available resources; To improve the planning of recurrent cost implications for capital expenditure; To provide the private sector and all other stakeholders with relevant information on the budgetary policies in the medium term; thereby improving the information base for private investment decisions. The MTEF is guided by the National Development Plans (NDP‟s), the Macroeconomic Framework and the Fiscal Policy Framework and it seeks to address the challenges identified under these frameworks. It outlines the policies underpinning the budget and sets out the expenditure ceilings for the next three financial years. The document comprises of the following Sections: Section 1 provides an introduction to the MTEF; Section 2 summarises the policy context of the budget; Section 3 comprises of Fiscal Policy developments covering the period 2008/09 – 2010/11; followed by Chapter 4 on Fiscal Policy Outlook 2011/12 – 2013/14. Section 5 deals with the Public Finance Management Strategy and lastly Section 6 covers the Medium Term Plans for Offices/ Ministries and Agencies. 3 Policy Framework 2.0 Policy Framework The global economy is recovering well from the economic recession albeit at varying speeds in different regions. This global pattern of multispeed recovery is expected to continue over the medium term period. Owing to this global economic recovering and the supportive government budget policy, the Namibian economics has recovered well from the effects of the global economic crisis. This recovery is projected to continue over the MTEF period with positive economic growth rates projected for all MTEF years. This favourable economic outlook provides favourable prospects for the public revenue. The favourable public revenue prospects allows for flexibilities to continue the use of Fiscal Policy to support the domestic economic recovery and to address other pressing issues. The total additional allocation over 2011/12 – 2012/13 amounts to N$14.9bn (N$8.8bn for 2011/12 and N$6.1bn for 2012/13, respectively). Total Resource Envelope over the MTEF amounts to N$119.9bn. Of this, an amount of N$37.7bn is proposed for 2011/12 financial year, N$37.5bn for 2012/13 and N$44.7bn for 2013/14. Government will thus continue with an expansionary fiscal policy stance over the MTEF. 4 Fiscal Policy Developments 3.0 Fiscal Policy Developments for 2008/09 – 2010/11 3.1 Revenue and Grants Total revenue and grants for 2009/10 amounted to N$24.0bn; which is 2 percent (N$479 million) more than the MTEF estimate of N$23.6bn. This outturn is 2.5 percent higher than N$23.4bn achieved during 2008/09. The positive outturn was a result of increased collection on Individual Income Tax, Non-mining Company Tax and Value-Added Tax (VAT). SACU receipts remained stable during 2009/10, but significant reduction was anticipated during 2010/11 and 2011/12 due to the impact of the global economic crisis on the SACU Common Revenue Pool (CRP). The SACU CRP incurred consecutive deficits of N$9.1bn and N$9.9 bn during 2008/09 and 2009/10 respectively. Preliminary outturn for 2010/11 financial year (April – December 2010) stood