WINDHOEK, (Xinhua) --
Namibia says it will work faster on the recommendations made by
Fitch Rating agency when it downgraded its economic outlook from
stable to negative last Friday.
Calle Schlettwein told a media briefing Tuesday in Windhoek that
in fact the assessment and ratings were based on the information
supplied by the government.
“The risk factors
emphasized in the ratings report are known to government and the
current medium term expenditure framework provides a basis for
containing these risks,” Schlettwein said.
The minister also
said the government was ready to take the necessary steps at a
faster pace than contemplated in the medium-term expenditure
framework budgetary framework.
Schlettwein, the medium-term expenditure framework he presented
in February as part of the national budget provides a basis for
pro-growth fiscal consolidation.
cuts, he further said, have already started while other non-core
spending has been lowered or postponed in many cases.
“Going forward, the
government will reinforce its time-tested approach to
responsible public finance management, pro-growth fiscal
sustainability and macroeconomic stability in the upcoming
mid-year budgetary review,” he said.
there would be expenditure realignment to ensure that public
finance put on a sustainable trajectory without significantly
jeopardizing the economic growth.
“Analysis of the
2016/17 budget and medium-term economic framework is currently
underway with specific proposals on spending cuts including the
freezing and suspension of funds for new recruitment in the
civil service,” the minister explained.
Schlettwein said the government was developing proposals to
better leverage state assets through public-private partnerships
and equity participation.
On the proposed law,
Schlettwein said the government was looking into it.
Fitch has based its
downgrade on budget deficit; declining Southern African Customs
Union revenue; government failing to meet its revenue targets
and the proposed New Equitable Economic Empower Framework law.
According to Fitch,
the proposed law that would require companies to make available
25 percent shareholding to the previously disadvantaged people
has caused so much fear within the business sector.
Even some economic
experts said the proposed law is scaring away potential foreign