The government of Namibia’s total foreign debt stood at 33.2 billion dollars at 31 March 2021 compared to 36.5 billion the previous year after interest payments amounting to two billion and over 20 million in cost for borrowing were made. This is contained in the Auditor General’s report on government finances for 2020/2021.
of the expenditure related to borrowing was for settling the capital amounts on the loans. In 2021 about N$40.55 billion was spend on repayment of debt of which 38 billion was for domestic debt. The foregoing amounts show that most of Namibia’s borrowings are skewed to the domestic market.
According to Bank of Namibia’s quarterly report for June 2022, local debt in 2021 was 91.8 billion while foreign debt was 32.5 billion.
The government has also paid a total of 48.5 billion dollars on foreign interest payment guarantees, redemption of domestic and foreign loans and related charges.
Domestic loan payments accounted for 38 billion dollars, while redemption of foreign loans amounted to just over two billion dollars. Total interest payments were 7.2 billion dollars.
The total expenditure on the budget item for payment of loans went up from N$41 billion dollars to 48.5 billion compared to 2019/2020 financial year, as a result of increases in total loan repayment from N$33.4 billion in the previous financial year to N$40.4 billion in 2020/2021. Total interest payment also went up by about N$1,6 billion.
The government’s salary bill represents 46 percent of the total expenditure, according to the Auditor General’s report.
The total personnel expenditure compared to the total budget has come down from 50.58 percent in 2018/2019 and 49.61 percent in 2019/2020. However, as staff cost over the three years rose marginally by N$274 343 863 from N$29 317 390 219 in 2018/2019 financial year to N$29 591 734 082 in 2020/2021.
According to the Auditor General Julius Kandjeke the 2021 expenditure on personnel represented an over expenditure of close to a billion dollars, however the government under spend on this budget item by just over 73 million dollars in 2019/2020 financial year.
The Auditor General observes that the tax revenue collected amounting to N$32 979 205 566 which is more than the projected revenue of N$25 668 556 456, ‘’but that there are some differences in the actual amount making it difficult to ascertain the correctness of this amount’’.
The Ministry of Finance explains that difference was as a result of adjustments during the mid-term budget review.
The Auditor General is satisfied with the ministry collecting more than its targeted tax debt of half a billion dollars by achieving actual tax debt of one billion.
The report says that the Customs and Excise Department target revenue of N$20 billion dollars, but more than the projected amount and received over 22.2 billion dollars.
Despite collecting more tax than the targets that were set, the Auditor General found that the Key Performance Indicators audit of the Inland Revenue Department and the Customs as Excise Directorate was not satisfactory. However, the KPI of the Debt Management Division was found to be satisfactory.