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Govt to cut fuel, new cars incentives

Govt to cut fuel, new cars incentives

Eba Kandovazu

GOVERNMENT stands to save an estimated N$200 million in the next five years by cutting on costly perks to office bearers.


In an attempt to reduce expenditure and ensure effective governance, President Hage Geingob today announced that for the next five years, the vehicle fleet of the Namibian government will not be renewed.


This essentially means that no new vehicles will be purchased for members of the Executive and Public Office Bearers in government.


The President also directed a cap on monthly fuel consumption by Public Office Bearers.


“In 2015, President Geingob undertook a major government reform agenda in order to deal with declining government revenue as a consequence of an unprecedented global economic downturn, falling commodity prices and exchange rate. Recurrent droughts over the past five years, of which the last was in 2019, have also affected the fiscal position of government,” Press Secretary, Alfredo Hengari, said in a statement.


N$200 million five years cutting costly perks office
EXECUTIVE DECISION: Photo for illustration purposes only


According to Hengari, last year alone, an amount of NA$557 million was redirected to drought relief, reaching 622,444 Namibians in all 14 regions.


“Government spending has been reduced by 9%; annual travel and subsistence allowances have been cut by 62%. Moreover, President Geingob has ensured greater transparency in government procurement by most notably cancelling the inflated Hosea Kutako International Airport tender. As a consequence, scarce government resources (41% of the national budget) have been directed to social sectors, including health, housing, and increments for the old age pension grant by over 100%, and the rollout of countrywide Food Banks, reaching over 42 000 Namibians,” he said.


In March, the cabinet was resized and the termination of the positions of special advisors to 14 regional governors was executed.


“The decision by President Geingob not to renew the government fleet, saving N$200 million, is a crucial segment in redirecting public resources to urgent priorities, specifically at a time when the country is dealing with the health and economic implications of COVID-19,” Hengari concludes.


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