Get us donor cash, minister pleads to experts

Minister for Industry and Trade, Dr Abdallah Kigoda.PHOTO|FILE

By Felix Lazaro The Citizen Reporter

IN SUMMARY

Some analysts have said that even when compared with some countries in the East African Community, Tanzania’s budget for industry is very low

Dar es Salaam. The minister for Industry and Trade, Dr Abdallah Kigoda, has called on Tanzanian experts to rescue the ministry from a liquidity crisis by coming up with proposals to attract funds for financing development projects.

Speaking at the meeting of members of Tanzania Union of Government and Health Employees (Tughe) who are employed by his ministry yesterday, Dr Kigoda said that one of the potential sources of attracting financial support for the ministry was non-governmental organisations, whether local or foreign.

He said for a long time, the ministry has been receiving low budget allocation which is much below what it needs for its activities that form the core of the country’s economic growth. He stressed that there was a need to look into ways of addressing the chronic problem of budget deficit.

“There is a need to conduct a sound research to identify areas that can help to attract funding by writing proposals and selling to various institutions,” said Dr Kigoda. He also said that apart from inadequate funding for the sector, even the amount that the Treasury releases to his ministry has usually been less than what the government Budget allocates it.

“In this financial year, for example, the amount that has already been released is just a small portion (30 per cent) of the amount that was allocated for the ministry,” said Dr Kigoda.

For his part, the ministry’s permanent secretary, Mr Uledi Mussa, said that despite the inadequacy in financing, the ministry has been implementing most of its activities as planned.

“The Ministry of Industry and Trade has been receiving just a small share of the national Budget; for example in the 2014/15 the budget ceiling for the priority sectors gives a clear picture of insufficient level, but we are managing to implement most of the core activities,” said Mr Mussa.

According to the ministry of Finance data availed in February, out of six priority sectors, the Industry and Trade ministry’s ceiling budget should be a mere Sh80 billion –the lowest allocation – followed by the Ministry of Agriculture, Food and Cooperatives which is allocated Sh260 billion and ministry of Transport whose budget ceiling is Sh320 billion.

The sectors whose budget ceilings are comparatively higher are Works (Sh800 billion), Education and Vocational Training’s (Sh400 billion) and Water (Sh320 billion).

Some analysts have said that even when compared with some countries in the East African Community, Tanzania’s budget for industry is very low.

, for it (Kenya) treats it as a priority sector.

According to Institute of Economic Affairs – Kenya (Budget Guide) and Tanzania’s Estimates of Public Expenditure for the financial years 2013/14 and in 2012/13 financial year, Tanzania’s Industry and Trade recurrent expenditure was 4.35 per cent of the Kenyan industrialisation and enterprises trade sector allocations.