The Namibian government projects public debt of 201.7 billion Namibian dollars for the 2026-2027 fiscal year, equivalent to 68.7% of gross domestic product, according to the mid-year budget review presented to Parliament on Thursday, 22 October.
Debt interest is expected to reach 15.4 billion Namibian dollars and absorb 17.5% of public revenue, compared with 16.2% in the previous fiscal year. This increase reduces the room available to finance public services and investment.
The budget deficit is still expected to be 16.3 billion Namibian dollars, or 5.5% of GDP. Revenue has been revised down by 1.5 billion to 88.1 billion Namibian dollars, mainly due to lower mining receipts, fuel levies and administrative fees than anticipated.
The government has also cut its growth forecast for 2026 to 2.3%, from 3.1% in the initial budget, after weaker-than-expected activity in the first half of the year. This revision is a forecast, not an observed annual outcome.
The budget presented in February still assumed growth of 3.1%. The mid-year review keeps the deficit at 5.5% of GDP while factoring in lower revenue and a higher cost of debt.