The government’s public debt stock has decreased to 60.1 per cent of the Gross Domestic Product (GDP) during the 2024/25 financial year from 62.5 per cent recorded at the end of the preceding financial year.

The reduction was announced by Minister of Finance Iipumbu Shiimi when he tabled the national budget for the 2024/25 financial year on Wednesday.

‘The public debt stock is estimated at N.dollars 165.8 billion or 60.1 per cent of GDP during FY2024/25, a reduction from an estimated 62.5 per cent of GDP at the end of the preceding financial year,’ Shiimi said.

He said the government has budgeted N.dollars 12.8 billion to meet debt servicing obligations in the 2024/25 financial year, equivalent to 14.2 per cent of revenues and 4.7 per cent of the GDP.

‘The debt servicing metrics, although stabilising, still remain above the desired benchmark of 10 per cent of revenues, therefore, the fiscal framework provides for specific measures to maintain public debt on a reduction path and ensure that debt is raised
in the most cost-effective manner.

He further said government is estimating to realise a positive primary budget balance of 1.4 per cent of the GDP, which subsequently projects an estimated N.dollars 8.9 billion as a deficit budget in nominal terms.

Shiimi tabled a N.dollars 100 billion national budget for the 2024/25 financial year.

Source: The Namibia Press Agency