allAfrica.com: Namibia: Budget for Or Against the Poor? the Debate Continues

Budget for Or Against the Poor? the Debate Continues: "At a budget analysis session of the business community yesterday, First National Bank Economist Martin Mwinga said the allocations in the budget would do little to stimulate economic growth.

Mwinga noted that a pro growth budget would result in an increase in disposable income and increase private sector investment.

But coming at a time when citizens of the country have not seen tax relief for some time, Mwinga said, there would not be much impact on the economy because more money in people's pockets would mean more money to buy goods because consumption is the most important stimulant of economic growth.

'As long as tax does not change, it will be difficult to invest,' Mwinga said, adding, 'The economy responds more to tax changes and not expenditure.'

Namibia has the highest corporate tax in the SADC region. Botswana's is 15 percent, while South Africa has around 28 percent."