Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698754394948.pdf (Namibia)
REPUBLIC OF NAMIBIA MINISTRY OF INTERNATIONAL RELATIONS AND COOPERATION Tel: (061) 2829111 Fax: (061) 223937/221145/220265 E-mail: beadquarters@mirco.gov.na Ref: Enquiries Private Bag 13347 WINDHOEK CONTRIBUTION TO THE DEBATE ON THE APPROPRIATION BILL BY HON DR PEYA MUSHELENGA, MP DEPUTY MINISTER OF INTERNATIONAL RELATIONS AND COOPERATION National Assembly Windhoek 10 March 2016 All official correspondence must be addressed to the Permanent Secretary 1 Honourable Speaker Honourable Members The features of the Budget presented by the Honourable Calle Schletwein reflects a levy.
Further, reduction in expenditure with N$ 1 billion, an increase in sin taxes fuel it was announcement income and levies will be introduced.

Meanwhile, corporate taxes remain intact.

that export In the academic field of Economics, a reduction in government expenditure coupled with increase in taxes is called tight fiscal policy, as opposed to easy fiscal policy by a reduction in taxes and an increase in spending.
This which is characterised supportive macro- does not automatically economic the fiscal policy.

These include structural change in trade, monetary policy, and other related measures.

results should be employed to complement growth.

Other in economic policies that cause to indirect is common in economics the performance is It and the determined by the fiscal policy and monetary policy that in place.
The fiscal policy measures adopted in the Budget with central bank put respect In its publication, Fiscal Policy and Long term growth 1 the International Monetary Fund (IMF) states that indirect tax could negatively affect economic growth.

Meanwhile, raising direct taxes have.

Further could be justified on the bastsof that commodities that benefit poor these can be counterweighted people.

taxes are friendly to economic growth.


by the spending on programmes the harmful effect the government the economy of ~ perspective, the~nnouncement is in order, especially long-term investments.

More importantly, Accompanying monetary yolicy in the increase of rates by the B'ank of Namibia.

From a lay man s view, such measures the would not be welcomed in view of the increase in loan repayments.
However, rise in interest have benefits for from a broader macro-economic at economic rates and taxes bring, down inflation, when such increased growth.

Generally, inflation in Namibia is inflation is due to demand-pull factors.

However, the one cause by cost-push factors, namely that firms try to maximise their profits.

In his publication entitled Economics for South African Student", Philip Mohr cautions I am not worried that the reduction in spending will adversely affect unemployment.
for I know that the large percentage of reduction in the overall expenditure is more on the operational budget, with the development budget reduced from N$ 11 to N$ 9 billion.

Employment creation depends on the development budget.

such measures the type of are aimed Honourable Sp~.a~Ji.4, The reduction GNW 2 billion on the development budget could be offset by the ratio of the composition of the construction industry benefiting from government spending.
thesis entitled The economic diplomacy of a small Yours truly alluded in his doctoral state, the anomaly in allocating a share of only one third the case of Namibia.

3 About to Namibians, unlike the Mozambican model where 70% of the construction industry International Monetary Fund, 2015, Fiscal policy and long term growth, June2015.

Mohr P., Economics for South African Students, Pretoria: Van Schaik Publishers.
Mushelenga P, 2015, The economic diplomacy of a small state: doctoral thesis, University of South Africa.

the case of Namibia, a IMF Policy Paper, is in the hands of indigenous businesses.

address the cost-push inflation effect with the contractionary policies that we have adopted in the Budget.

If we adopt this model, we will efficiently fiscal and monetary 2 the past years, especially in developing countries.

Honourable Speaker The link between policy planning and budgeting should be underscored.
This has In their gained momentum over paper entitle A guide to public financial management titereture" Rebecca Simson, Natasha Sharma and Imran Aziz recommend measures that are required in effective budgeting, namely maintaining fiscal discipline, allocating resources in accordance with policy priorities and efficiently delivering service - value for money.

Accordingly, effective allocation in both in important economic and social sectors of the economy.
This should be accompanied by proper policy implementations.

to deal with development resources of improvement lists agriculture, there is provision for as the priority areas.

Honourable Muharukua The National Development Plan (NDP 4) industry and logistics disappointment document, horticultural and post-harvest management.

it perhaps, considerable meantime, example, one of the priorities in the budged addresses what intervening acts of God, namely drought.
pharmaceuticals tourism, manufacturing expressed that agriculture is neglected.

But looking at the development budget increase in the allocation to projects of crop and as well as pre- therefore, aligned to the NDP4 - to what extent?

It should off course be noted that a the NDP4, and in the new priority area arises.

For lawyers would call the relief, and live-stock productivity The Budget and universal grant for secondary education in the Budget.
time have lapsed since the formulation I applaud the prioritising of drought new trends developed is a question of: and therefore, improvement, is, of Honourable Speaker Let me move to international relations in the international Trends cooperation have been observed.

engagements with Iran resulted in successful sanctions.

sanctions, Iran is Namibia's old friend and an important therefore, adds meaningful system signify political conclusion, impetus to existing relations.
efforts towards peaceful diplomatic followed by the lifting of trade partner.

The lifting of In the area of nuclear disarmament, The new US's foreign policy towards Cuba, another Namibia's old friend and ally, is commendable.

The resilience of the people of Cuba has paid-off.

They have too, set a good example for small states to be assertive and be true to their conviction.

I salute them for their fortitude, against all odds.
It is my wish that sooner in the approach to the long-standing Middle East question.

The people of Palestine have forces in the international repeatedly suffered.

Open biasness on the part of powerful they handle community towards Israel continue to manifest there will be another policy shift in the manner than later, rather itself that Overseas Development practitioners in developing countries, London: Overseas Development Institute.
Institute, 2011, A guide to public financial management literature, for international law-making at the UN Security Council, eventually subjecting the issue to soft-law.

A lasting peace is due in that region and large states who holds the key should open the door for entry into a yard symbolising a destiny of peace, hope and progress 3 .

.

• With these words, Term Expenditure Framework for the year 2016/17 - 2018/19.

the budget I support for the financial year 20-6/17 and the Medium I thanks you