The government has committed to reducing the fiscal deficit from 5.5% of Gross Domestic Product (GDP) in the 2026/27 financial year to 3.3% by 2028/29. 

The country's fiscal position is currently said to be weak with limited fiscal buffers, failing revenues and high spending needs. 

The 2026-2027 National Budget tabled in February was N$87.9 billion, excluding statutory payments. 

At the time, the public debt was at N$174.6 billion.

"Look at our debt; our debt is really above the SADC benchmark, which is 60% of GDP. Our debt is now more than 65%. So if we do not slow down our debt by the end of the year, it's likely to move up to above 70%, and that's why we are talking about that reform," remarked Bank of Namibia Governor Ebson Uanguta. 

Speaking at the opening of the Budget Reform Roll-Out Workshop in Windhoek, Prime Minister Elijah Ngurare explained that the government plans to reduce the fiscal deficit to 3.3%.

The current deficit is at 5.5% of GDP owing to geopolitical tensions and economic disruptions in the Middle East. 

"Achieving this adjustment will require discipline across all votes, stricter control over non-priority expenditure, and a shared understanding that every dollar saved today creates room for more productive investment tomorrow. The debt trajectory, on one hand, requires N$2.3 billion in annual savings during the current MTEF period to come from expenditure restraint; these savings must therefore be identified early, protected during execution, and safeguarded against slippages."

Dr Ngurare added durable fiscal improvement should also be supported by strong economic growth, driven by well-selected and efficiently implemented public investments through prudent allocation within the development budget.

"This means directing scarce resources toward projects that raise productivity, crowd in private investment, expand economic opportunity, and improve service delivery."

Hosted by the Ministry of Finance, the Budget Reform Roll-Out workshop aims to accelerate the country's budget reforms to address economic pressures.