Tanzania’s expected budget brings shock and fear

The recent proposed Tanzania’s budget which the government is planning to mobilize and spend some 32.5trn/- in the next financial year targeting energy, transport and human resources development sectors to power its booming industrial economy has caused shock and fear. The most disappointing thing to note is that, the ability of the government to collect its taxes per year is about Tshs.  14.5 trillions. Where will other money come from to fill the gap of the rest? This is a shocking news and a great fear to the citizens in the country. The 2017/18 budget was Tshs, 29.2 trillion. Presenting the estimates of the government revenue and expenditure for the financial year 2018/19 to Members of Parliament (MPs) early this week in Dodoma, the Finance and Planning Minister, Dr Philip Mpango, estimated recurrent and development expenditure at 32,475,950m/-. Of this amount, 37 per cent or 12.007trn/- is estimated for development projects having slightly increased by 0.8 per cent from the 11.999trn/- approved in the 2017/18 budget. Finance and Planning Minister, Dr Philip Mpango, estimated recurrent and development expenditure at 32,475,950m/-. Of this amount, 37 per cent or 12.007trn/- is estimated for development projects having slightly increased by 0.8 per cent from the 11.999trn/- approved in the 2017/18 budget. The new draft budget shows 82.3 per cent of the development expenditure will be drawn from internal sources and the remaining 17.7 per cent will be sourced from foreign funds. “The new budget estimates will focus on key development projects to propel an inclusive industrial economy. In the long-run we will also be prioritising sectors which can link industrial and human development.” The new draft budget shows 82.3 per cent of the development expenditure will be drawn from internal sources and the remaining 17.7 per cent will be sourced from foreign funds. “The new budget estimates will focus on key development projects to propel an inclusive industrial economy. In the long run we will also be prioritising sectors which can link industrial and human development,” he noted. 

Tanzania's Finance and Planning Minister, Dr Philip Mpango,

 The key projects highlighted in the draft budget include implementation of the Mchuchuma (coal) and Liganga iron ore, the 2100MW Rufiji Hydropower, construction of a 636km-long standard gauge railway line from Dar es Salaam to Morogoro and Dodoma. Other priority projects include revival of national flag carrier -Air Tanzania Company Limited (ATCL), construction of the Hoima-Tanga crude oil pipeline, Lindi liquefied natural gas LNG plant, Mkulazi Sugar Factory, Kurasini modern logistic- centre and strengthening economic processing zones in Bagamoyo and Kigamboni. During the FY 2017/18 the government proposed to collect and spend 31.712 trn/-. As of January, this year, the state had collected 85.0 per cent of the total budget estimates or 17.401trn/-. Of the 17.4trn/-, the state released 13.349trn/- for recurrent expenditure and 4.052trn/- for development expenditure. Dr Mpango says the new draft budget estimates 20.468trn/- for recurrent expenditure with 10.004trn/- chiefly allocated to clear the public debt that now stand at 47.756trn/-. The Finance Minister said development partners are expected to contribute 2.676trn/- or 8 per cent of the general budget estimates. It said it will also borrow from local sources at least 5.793trn/- and an additional 3.111trn/- from foreign markets. At least 20.894trn/- will come from internal sources, with non-tax revenues projected at 2.158trn/-. Dr Mpango emphasised the government will be targeting to support industries and processing factories which will use locally produced raw materials including minerals and natural gas. On this, he said the government consider restructuring the state owned Small Industries Development Organisation (SIDO) and the Centre for Agricultural Mechanisation and Rural Technology, boost productions of soda ash at the Engaruka valley as well as other medium sized factories. “We’re committed also to support development of human resources. This is chiefly by ensuring improved access to water, health, education and electricity,” he said. “The government is considering building vocational training centres across districts in the country, build schools and hospitals to meet the increasing demands.” Latest government figures indicate that access to the precious liquid in urban and rural communities had reached an average of 78 per cent and 55.5 per cent respectively. Electricity access is now 67.5 per cent in both urban and rural areas in the country.