SACU revenue, MTC stake sell propel budget surplus

Increased revenue from the Southern African Customs Union (SACU) and the recent sell of a stake in Mobile Telecommunications (MTC) have contributed towards the surplus projected in the 2006/7 financial year and increased it to N$931 million, Minister of Finance, Saara Kuugongelwa-Amadhila said this week when she presented the additional budget. Total revenue can now be estimated at N$16.2 billion for the financial year, as mainly a result of increased SACU receipts, which are N$321.8 million above the main budget estimates, and proceeds of N$648 million from MTC share sales.

The finance minister said the additional budget is aimed at the re-allocation of funds already appropriated in the main budget. “The amount sought in additional funding is marginal and it is more than covered by the increase in SACU revenue alone. This means that despite the expenditure revision, I expect the budget surplus to exceed the Main Budget estimates by N$798.7 million,” the finance minister said. Kuugongelwa-Amadhila said economic growth in 2005 was one percentage point higher than the projections of 3.2 % for that year. “2006 is also expected to outperform the projections of 3.8%, despite having started with mixed results. Improvements were observed in the second quarter of this year as a consequence of good performance in sectors such as mining and quarrying, transport and communication, electricity and water, hotels and restaurant as well as wholesale and retail,” said the minister.