Grand 6.2 trillion/- 2016 development package rolled out

CHRISTOPHER MAJALIWA in Dodoma

THE government plans to direct 6.7 per cent of the national income to implement various flagship projects in 2016/2017 financial year.

According to the National Development Plan proposal presented to the MPs here, for the coming fiscal year, the government plans to spend 6.2trillion/- for development projects whereas 4.8trillion/-, which is equivalent to 77.8 per cent, will be from internal sources of revenues and the remaining 1.3trillion/- will come from development partners.

The proposal also indicated that such projects will be implemented through Public Private Partnership (PPP), the private sector and by the government itself through internal sources.

To make these plans more viable, the government plans to seek other sources of income apart from traditional sources, which have not been adequate in comparison to financing requirements.

Traditional sources for public financing are generally tax revenues and non tax revenues, revenues from local government and proceedings from parastatals and executive agencies.

The flagship projects lined up for implementation are comprehensive special economic zones such as Bagamoyo Port, Mtwara and Kigoma to attract labour-intensive manufacturing industries, agro-processing and value addition, targeting the domestic and regional market.

The government is also set to establish a Kurasini Trade and Logistic Hub, chemical and glass sheets industries based on soda ash deposits from Lake Natron and Engaruka Basin and construction of new central line of standard gauge.

To ensure that the country has adequate experts, the government also envisages mass training of young Tanzanians in specialised skills such as oil and gas and imparting a pool of labour-force.

The government also plans to purchase two planes for Air Tanzania Company Limited (ATCL) and three ships that will operate in Lake Victoria, Tanganyika and Nyasa.

Report on the implementation of 2015/2016 Development Plan indicated that as of December last year, only 1.8 trillion/- was released to carry out various development projects.

The budget set for development projects stood at 5.9 trillion/-. The government also insisted that it would further strengthen PPP following the policy, laws and regulations that have already been put in place.

The programme would involve private sector and development partners. The 2015/2016 development plan focuses on priority areas, including infrastructure, where the government would touch energy, roads, railways, ports, air transport, water and sewerage, Information and Communication Technology.

Others are agriculture, livestock, industries under EPZ and developing human capital. Other important areas to stimulate the economy, he said, would include technical training, investment in mining, livestock and fishing, forestry and wildlife, health and social welfare, land and housing at regional levels.