30% spent: Development budget falters
Finance minister Ericah Shafudah has sounded the alarm over the government’s severely lagging development budget implementation, revealing that only 30% of the funds had been executed as of September 2025.
Addressing civil society organisations (CSOs), Shafudah described the rate as “very, very low,” especially when contrasted with the operational budget, which has a relatively healthy 50–54% execution rate against its N$79.8 billion allocation.
The minister said the slow progress by government offices, ministries and agencies (OMAs) is prompting a re-assessment of spending priorities ahead of the mid-term budget tabling in late October. “The operational budget is relatively okay. The allocation stands at N$79.8 billion, and by the time we were conducting these consultations, the execution rate of about 50–54% on average is acceptable. But some offices are still lagging behind.”
“The development budget, on aggregate, is where we are worried, because the execution rate is very, very low - just 30% as of September 2025,” she added.
Following consultations, the ministry has been seeking mechanisms to ensure that OMAs utilise allocated funds effectively to achieve development goals.
“We acknowledge their views and feedback. Some are saying the procurement processes need to be reviewed because they seem too long. There are also disputes among bidders when competing, but at least they demand fairness, given that allocations go to one party while another may be dissatisfied,” she said.
According to Shafudah, work is underway to ensure the speedy implementation of government projects and bids by public enterprises. “Of course, mechanisms have been established for those decisions to be reviewed, and that process also takes time,” she added.
The ministry is also engaged in amending the Procurement Act to facilitate faster execution of government bids. “The Ministry of Finance teams are consulting nationwide on the Procurement Act because we are amending it to address concerns raised by the public. You are welcome to share with us areas for improvement to ensure that budgets are executed according to the allocations for programmes and projects.”
Addressing civil society organisations (CSOs), Shafudah described the rate as “very, very low,” especially when contrasted with the operational budget, which has a relatively healthy 50–54% execution rate against its N$79.8 billion allocation.
The minister said the slow progress by government offices, ministries and agencies (OMAs) is prompting a re-assessment of spending priorities ahead of the mid-term budget tabling in late October. “The operational budget is relatively okay. The allocation stands at N$79.8 billion, and by the time we were conducting these consultations, the execution rate of about 50–54% on average is acceptable. But some offices are still lagging behind.”
“The development budget, on aggregate, is where we are worried, because the execution rate is very, very low - just 30% as of September 2025,” she added.
Following consultations, the ministry has been seeking mechanisms to ensure that OMAs utilise allocated funds effectively to achieve development goals.
“We acknowledge their views and feedback. Some are saying the procurement processes need to be reviewed because they seem too long. There are also disputes among bidders when competing, but at least they demand fairness, given that allocations go to one party while another may be dissatisfied,” she said.
According to Shafudah, work is underway to ensure the speedy implementation of government projects and bids by public enterprises. “Of course, mechanisms have been established for those decisions to be reviewed, and that process also takes time,” she added.
The ministry is also engaged in amending the Procurement Act to facilitate faster execution of government bids. “The Ministry of Finance teams are consulting nationwide on the Procurement Act because we are amending it to address concerns raised by the public. You are welcome to share with us areas for improvement to ensure that budgets are executed according to the allocations for programmes and projects.”
