Revenue Expenditure and Budget Balancing Revenue Expenditure and Budget Balancing

Revenue Expenditure and Budget Balance

Revenue collection is important lever for fiscal policy.Revenue growth creates fiscal space needed for narrowing the deficit and funding development needs. ? Revenue growth is not only a function of collections. Policies to improve economic growth and tax admin are important.

One of the measures of revenue productivity of tax system is that tax revenue should grow as the economy (GDP) grows.   As a proportion of GDP, Namibia's revenue has remained around 30% of GDP, but projected to increase to about 40% by 2013/14 . ?Improved compliance is, among other reforms, needed to drive the growth

 

Tax Revenue as % of  Total Revenue and GDP

Tax revenue is significant, accounts for over 90% of revenue
•If SACU revenue is excluded, the proportion falls to about 65%.
•This raises the need to strengthen domestic revenue base and collection
•In fact, tax revenue from own sources ( e.g if SACU excluded), has grown steadily over time