“It’s important to target being independent in budget funding to avoid
risks in implementing projects. Donor funds come with conditions and
sometimes they are not reliable, a trend that disrupts our plans,” Ms
Saada Mkuya Salum, Finance Minister
By Alawi Masare, The Citizen Reporter
In Summary
Dar es Salaam. Tanzania government plans to cut
donor dependency in the coming Budget from the current 14.8 per cent to
8.4 per cent of the total estimates as part of its effort to facilitate
smooth implementation of development projects.
Finance Minister Saada Mkuya Salum said yesterday
that the government wants to strengthen revenue from domestic sources to
avoid risks associated with condition-bound foreign aid.
In the 2015/16 Budget, the government plans to get
Sh1.89 trillion from donors, which is 8.4 per cent of the Sh22.48
trillion general estimates, she said.
In 2014/15, the soft loans and grants promised by
development partners were Sh2.94 trillion which added up to 14.8 per
cent of Sh19.8 trillion Budget.
Last year, however, the UK, Japan, Germany and
other development partners including the World Bank announced to
withhold the $558 million (Sh922 billion) pledged for the country’s
2014/15 Budget following a corruption scandal in the energy sector.
In January this year, however, donors released $15
million (Sh25.8 billion) of the $558 million (Sh959 billion) support
they had withheld over the Tegeta escrow account scam. The money was
sent in December, according to a statement by the Development Partners
Group Tanzania.
And speaking in Dar es Salaam yesterday, Ms Salum
said out of the Sh2.94 trillion, until March 2015, the development
partners had only released Sh1.58 trillion, representing a mere 54 per
cent of their pledges.
Tanzania is one of Africa’s biggest per capita aid
recipients and the withheld funds derailed spending plans including the
preparation for the October General Election.
“The only reliable revenue that we can manage is
that from domestic sources. We are strengthening revenue from the taxman
and as any other country would like to be, we want to stand on our own
feet,” said Ms Salum during the pre-budget presentation to MPs.
“It’s important to target being independent in
budget funding to avoid risks in implementing projects. Donor funds come
with conditions and sometimes they are not reliable, a trend that
disrupts our plans,” she added.
She said that looking at the current economic
development rate of around 7 per cent, Tanzania has the potential to
collect revenue that can meet all its expenditure. “But then, Tanzanians
need to be encouraged to pay taxes,” she noted.
The minister’s statement comes hardly a month
since Tanzania Revenue Authority (TRA) commissioner general Rished Bade
told The Citizen that the East Africa’s second biggest economy is
capable of financing its entire budget through funds sourced locally in
the next five years
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