Sunday, April 24, 2016

MPs to discuss CAG’s report on Monday

FAUSTINE KAPAMA in Dodoma
THE 2016/17 budget session resumes here to Monday with Members of Parliament (MPs) expected to receive the highly awaited report of the Controller and Auditor General (CAG), Prof. Mussa Assad.

Finance and Planning Minister Dr Philip Mpango had earlier been set to table the report in Parliament on April 22, this year, but the session was rescheduled due to unavoidable circumstances.
In his report presented before the Parliament in May last year, the CAG unveiled several shortcomings which denied the government a lot of revenue, including unresolved tax appeals on cases worth over 1.7tr/-.
Such cases, according to the CAG, were pending before Tax Revenue Appeals Board and Tax Revenue Appeals Tribunal and Court of Appeal of Tanzania. He called on speedy disposal of the cases.
On tax exemptions, Prof. Assad noted weaknesses on misuse of tax exemptions granted, in particular for mining companies on fuel, for example, causing the government to suffer 22.33bn/-loss.
The CAG discovered a sum of 32.74b/- that was withheld under revenue retention scheme in the Central Government and other government institutions, thus affecting completion of planned duties.
Prof Assad also discovered non-use of electronic receipts dispensed by EFDs on 4.4bn/- payments from different private business people and 4.6bn/- on samples from 22 local government authorities.
He pointed out that the TRA imposed a total fine of 440.8m/- on various businessmen who refused to use the EFD electronic machines, but only 72m/-, was realized, leaving a balance of 369m/-.
The CAG further noted a drop of government investments on companies where it has shares, warning that such trend could lead to dilution of shares.
Such companies include the National Bank of Commence (NBC) Limited, Air Tanzania Limited (ATCL), Tanzania and Zambia Railways (Tazara) and Tanzania Railways Limited (TRL).
The tabling of the report in question will go alongside the debate by the MPs on the Prime Minister’s budget estimates for his office presented before the august House last week. In his maiden budget, Premier Kassim Majaliwa outlined several key priority areas that would help realize the goals set by the Fifth Phase Government, notably improved economy and social services.
He requested the Parliament to approve 236.8bn/- for the 2016/17 financial year, out of which 71.6bn/- is for recurrent expenditure and 165.2bn/- is for development spending. The timetable shows that after the approval of the Prime Minister’s budget estimates, the President’s Office would follow.
Under President’s Office, the Regional Administration and Local Government budget would be discussed for three days, while that of Public Service and Good Governance will be discussed for one day.
The timetable shows that presentation of budget estimates for the ministries is expected to be concluded on June 2. This will allow the government and Budget Committee to incorporate issues of national interests unveiled by the MPs during discussion of budgets estimates of other ministries.
Such session would take six days from June 3 to 8, before the Minister for Finance and Planning presents the main government budget on June 9. The MPs will discuss the budget for seven days starting June 13.
Thereafter, there would be presentation and discussions of Finance and Appropriation Bills, 2016 starting on June 21 and the Prime Minister is expected to adjourn the budget marathon session on July 1

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