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Tanzania unveils over US $14bn for this fiscal year budget

THE government of Tanzania yesterday unveiled its 31.7tri/-  about US $14bn  for National Development Plan and Budget Ceiling for the 2017/2018 fiscal year, an increase of 2.2tri/- over the current 29.5tri/- financial plan.

Tanzania unveils over US $14bn for this fiscal year budget

THE government of Tanzania yesterday unveiled its 31.7tri/-  about US $14bn  for National Development Plan and Budget Ceiling for the 2017/2018 fiscal year, an increase of 2.2tri/- over the current 29.5tri/- financial plan.

29 mart 2017 Wednesday 10:07
Tanzania unveils over US $14bn  for this fiscal year budget

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Finance and Planning Minister, Dr Philip Mpango tabled the budget projections before Parliament in line with the National Development Plan for 2017/2018. Overall, he proposes a budget totalling 19.7tri/- in recurrent financing which includes a wage bill of 7.2tri/- and another 9.4tri/- for financing the national debt.

The budget projections indicate the national budget goes up from 8,000bn/- to 9,461.4bn/- following the maturing of the previous loans taken for financing development projects.

The “Other charges (OC)” budget line receives some 3tri/- against 11.9tri/- set aside for development. However, the government plans to collect 19.9tri/- from domestic sources, including local government revenue, which is pegged at 63 per cent of the budget -- compared to the current 18.46 trn/-.

From domestic collection, tax revenue is estimated at 17.1tri/-, which is equivalent to 85.6 per cent while non-tax revenue and LGAs own sources would rope-in 2.18tri/- and 687.3bn/- respectively.

Dr Mpango said that in order to ensure that the collection targets were achieved, the government would strengthen revenue collection systems and curb the loopholes leading to revenue losses.He noted that the development partners are expected to contribute 3.9tri /-, which is equivalent to 12.6 per cent of the total budget.

The Minister also said that the government was expecting to borrow 6.15tri/- from domestic sources of which 4.9trn/- will be used for financing treasury bills and bonds while 1.20tri/- equivalent to the national income is a new loan for financing development projects.

“In order to speed up infrastructure construction, the government is expecting to borrow 1.59tri/- from the external non-concessional borrowing,” he said.

The Minister noted that the budget for development projects had risen from 11.8tri/- during FY 2016/2017 to 11.9tri/- in the budget projection of the next financial year, equal to 38 per cent of the total budget. concentrate and advice on the technology to use,” he elaborated.

“This increase has taken into consideration our budget sources and other important factors, among others, completion of the Muhimbili University of Health and Allied Sciences -- Mloganzila Campus -- which needs to be allocated funds for its operation", he said Dr Mpango noted that the government has also allocated funds for ongoing projects such as upgrading of the Central Line to SGR level, which would consume 1trn/ this financial year alone, and a total of 800bn/- for the coming fiscal year.

The National Development Plan spells out seven priority areas, which include the construction of the Central Line at Standard Gauge, the revival the Air Tanzania Company, implementation of the Liganga iron ore and Mchuchuma Coal projects. Other priority areas include establishment of special economic zones in various regions such as Tanga, Coast Region, Kigoma, Ruvuma, and Mtwara, implementation of Liquefied Natural Gas project and investments in two sugar factories.

The minister also noted that the government would continue to invest into other prioritized projects such as building the basic infrastructure for the envisaged industrial economy -- by setting up industrial sites at Kibaha in Coast Region, General Tyre in Arusha, implementing the Soda Ash project in Engaruka Valley and strengthening of the National Empowerment Development Fund. Further, he noted that the government would push the implementation of its plan to relocate to Dodoma.

“In fulfilling this plan the ministries have been directed to set budgets for financing the workers’ welfare through the budget allocated under their votes,” he said.

Dailynews

Updated: 29.03.2017 10:20
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