Brigitte Weidlich
11 April 2008
Windhoek — The high allocation to the Defence Ministry of over ten per cent of the National Budget was only temporary and did "not represent a permanent extension of that sector," Finance Minister Saara Kuugongelwa-Amadhila said on Tuesday.
"The budgetary provisions [of N$2,4 billion] for defence are mainly targeted to replace outdated equipment and rehabilitate infrastructure," the Finance Minister said in her reply to the budget debate.
"The budgetary increase is therefore a temporary measure to finance a necessary overhaul that will enable the Namibia Defence Force to operate reliably, safely and effectively," she added. In response to concerns raised by several opposition MPs about the expected drop of revenue from the Southern African Customs Union (Sacu), the Minister said "increased trade liberalism may result in reduced customs revenue initially."
The Sacu income is about one third of State revenue and amounted to over N$8 billion according to the latest budget documents. "However, lower tariffs should also promote increased trade volumes and improved revenue streams from customs and excise duties as well as domestic taxes," the Minister said. Responding to calls by some opposition MPs, she also gave a breakdown of the major allocations from the N$200-million-strong Contingency Fund between April 2007 and March this year. About N$62,4 million went to disaster relief while N$42,7 million went to war veterans, orphans and vulnerable children and the San development programme.
Legislation was being drafted to ensure a better response to natural disasters, the Minister told the House. Financial assistance to needy students amounted to N$24 million and N$30 million went to the Namibia Airports Company to rehabilitate the main landing strip at the Hosea Kutako International Airport.
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