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Accountability Report 2016-17

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Accountability Report 2016-17 Table of Contents FOREWORD ............................................................................................................................................................................ i INTRODUCTION .................................................................................................................................................................... ii OVERVIEW OF THE BUDGET OUTTURN 2016/2017............................................................................................................. iii VOTE 01: OFFICE OF THE PRESIDENT .................................................................................................................................... 1 VOTE 02: OFFICE OF THE PRIME MINISTER .......................................................................................................................... 6 VOTE 03: NATIONAL ASSEMBLY ......................................................................................................................................... 12 VOTE 04: OFFICE OF THE AUDITOR-GENERAL .................................................................................................................... 15 VOTE 05: HOME AFFAIRS AND IMMIGRATION ................................................................................................................... 23 VOTE 06: SAFETY AND SECURITY ........................................................................................................................................ 28 VOTE 07: INTERNATIONAL RELATIONS AND COOPERATION .............................................................................................. 33 VOTE 08: DEFENCE .............................................................................................................................................................. 38 VOTE 09: FINANCE ............................................................................................................................................................. 42 VOTE 10: EDUCATION, ARTS AND CULTURE ....................................................................................................................... 47 VOTE 12: GENDER EQUALITY AND CHILD WELFARE ........................................................................................................... 63 VOTE 13: HEALTH AND SOCIAL SERVICES ........................................................................................................................... 67 VOTE 14: LABOUR, INDUSTRIAL RELATIONS AND EMPLOYMENT CREATION ..................................................................... 74 VOTE 15: MINES AND ENERGY ........................................................................................................................................... 79 VOTE 16: JUSTICE ................................................................................................................................................................ 84 VOTE 17: URBAN AND RURAL DEVELOPMENT ................................................................................................................... 87 VOTE 18: ENVIRONMENT AND TOURISM ........................................................................................................................... 92 VOTE: 19: INDUSTRIALIZATION, TRADE AND SME DEVELOPMENT .................................................................................... 96 VOTE 20: AGRICULTURE, WATER AND FORESTRY ............................................................................................................ 106 VOTE 21: OFFICE OF THE JUDICIARY ................................................................................................................................. 119 VOTE 22: FISHERIES AND MARINE RESOURCES ................................................................................................................ 124 VOTE 23: DEPARTMENT OF WORKS ................................................................................................................................. 129 VOTE 24: DEPARTMENT OF TRANSPORT .......................................................................................................................... 135 VOTE 26: NATIONAL PLANNING COMMISSION ................................................................................................................ 144 VOTE 27: SPORT, YOUTH AND NATIONAL SERVICE .......................................................................................................... 149 VOTE 28: ELECTORAL COMMISSION OF NAMIBIA ............................................................................................................ 154 VOTE 29: INFORMATION AND COMMUNICATION TECHNOLOGY .................................................................................... 160 VOTE 30: ANTI-CORRUPTION COMMISSION .................................................................................................................... 166 VOTE 31: VETERANS AFFAIRS ........................................................................................................................................... 170 VOTE 32: HIGHER EDUCATION, TRAINING & INNOVATION .............................................................................................. 173 VOTE 33: POVERTY ERADICATION AND SOCIAL WELFARE ............................................................................................... 177 VOTE 34: PUBLIC ENTERPRISES ......................................................................................................................................... 180 VOTE 35: OFFICE OF THE ATTORNEY-GENERAL ................................................................................................................ 183 INTRODUCTION The 2016/2017 budget was launched under the theme “Towards Pro-Growth Fiscal Consolidation” and directed at addressing global economic challenges that posed a threat to domestic economic growth and weakened revenue performance and other key fiscal indicators. In 2016, real GDP grew by 1.1 per cent compared to 6.0 per cent in 2015. Revenue performance remained vulnerable to external shocks, largely caused by SACU receipts which accounted for 28 per cent of Government revenue in FY2016/2017. The budget was characterized by fiscal consolidation and adjustments to expenditure profiles to address national priorities. Fiscal Consolidation was needed to realign public expenditure with available revenue in order to reduce the budget deficit and stabilize the accumulation of debt stock. In the FY2016/2017 Mid-Year Budget Review, budgeted expenditure was revised downwards by N$4.5 billion from N$65.9 billion to N$61.5 billion. Revenue forecasts were reduced by N$ 6.3 billion from N$57.8 billion to N$51.5 billion. Despite tough economic times, FY2016/2017 budget focused on: Poverty reduction and improvement of social welfare; Developing a performance and results based work culture to ensure accelerated service delivery, accountability and value for money; Enhancing prosperity and wealth creation; and, Implementation of an inclusive growth agenda where “no Namibian will be left out”. FY2016/2017 budget allocations as well as reforms and the fiscal policy measures taken have achieved the expected results. “This theme and fiscal policy stance are necessary for the future sustainability of positive development outcomes. And it requires that we innovate, improve returns on our investments and implement policy reforms to optimize outcomes that will lead to timely, reliable and affordable quality service delivery to the nation.” - Calle Schlettwein ii OVERVIEW OF THE BUDGET OUTTURN 2016/2017 1. Revenue outturn 2016/2017 FY2016/2017 revenue outturn was N$50.8 billion, 99 per cent of the revised target of N$51.5 billion. The shortfall was attributable to weaker than expected domestic economic growth in the mining, constructions and wholesale retail trade sectors. SACU revenues dropped by N$3.3 billion from N$17.3 billion in 2015/16 to N$ 14.0 billion in 2016/2017 due to the economic situation in the Republic of South Africa. Table 1: total revenue outturn 2016/2017 Revenue Head 2016/17 2016/17 Collection Revised Actual rate % TOTAL REVENUE AND GRANTS 51,512 50,865 99% TAX REVENUE 48,601 47,642 98% Tax on income and Profits 19,488 20,607 106% Income Tax on Individuals 10,814 12,002 111% Company Taxes 7,851 7,708 98% Diamond Mining Companies 2,048 1,611 79% Other Mining Companies 81 92 113% Non-Mining Companies 5,722 6,006 105% Other Taxes on Income and Profits 386 374 97% Non-Resident Shareholders Tax 257 266 103% Tax on Royalty 107 87 81% Annual Levy on Gambling Income 22 21 97% Withholding Tax on Interest 437 522 120% Withholding tax on companies & 204 290 142% individuals Withholding tax on unit trusts 90 84 93% Withholding tax on Services 143 148 104% Taxes on Property 273 284 104% Domestic Taxes on Goods and Services 13,366 12,497 94% VAT + Additional Sales Tax + General Sales 12,963 11,978 92% Tax Levy on Fuel 114 315 276% Fishing Quota Levies 123 108 88% Gambling License (Business) 2 2 85% Environmental levies & Carbon Emission 150 67 45% Taxes Other taxes on goods and services 14 27 193% Taxes on International Trade and 14,071 14,071 100% Transactions SACU Revenue Pool Share 17,028 17,028 100% Revenue Formula Adjustments -2,957 -2,957 100% iii Other Taxes 272 183 67% NON - TAX REVENUE 2,744 3,207 117% Entrepreneurial and Property 1,636 2,305 141% Interest Receipts for Loans Extended to 6 5 91% SOEs Interest on Investments - - Dividends
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