THE government yesterday unveiled its 31.7tri/- National Development Plan and Budget Ceiling for the 2017/2018 fiscal year, an increase of 2.2tri/- over the current 29.5tri/- financial plan.
Finance and Planning Minister, Dr Philip
Mpango tabled the budget projections before Parliament in line with the
National Development Plan for 2017/2018. Overall, he proposes a budget
totalling 19.7tri/- in recurrent financing which includes a wage bill of
7.2tri/- and another 9.4tri/- for financing the national debt.
The budget projections indicate the
national budget goes up from 8,000bn/- to 9,461.4bn/- following the
maturing of the previous loans taken for financing development projects.
The “Other charges (OC)” budget line
receives some 3tri/- against 11.9tri/- set aside for development.
However, the government plans to collect 19.9tri/- from domestic
sources, including local government revenue, which is pegged at 63 per
cent of the budget -- compared to the current 18.46 trn/-.
From domestic collection, tax revenue is
estimated at 17.1tri/-, which is equivalent to 85.6 per cent while
non-tax revenue and LGAs own sources would rope-in 2.18tri/- and
687.3bn/- respectively.
Dr Mpango said that in order to ensure
that the collection targets were achieved, the government would
strengthen revenue collection systems and curb the loopholes leading to
revenue losses.He noted that the development partners are expected to
contribute 3.9tri /-, which is equivalent to 12.6 per cent of the total
budget.
The Minister also said that the
government was expecting to borrow 6.15tri/- from domestic sources of
which 4.9trn/- will be used for financing treasury bills and bonds while
1.20tri/- equivalent to the national income is a new loan for financing
development projects.
“In order to speed up infrastructure
construction, the government is expecting to borrow 1.59tri/- from the
external non-concessional borrowing,” he said.
The Minister noted that the budget for
development projects had risen from 11.8tri/- during FY 2016/2017 to
11.9tri/- in the budget projection of the next financial year, equal to
38 per cent of the total budget. concentrate and advice on the
technology to use,” he elaborated.
“This increase has taken into
consideration our budget sources and other important factors, among
others, completion of the Muhimbili University of Health and Allied
Sciences -- Mloganzila Campus -- which needs to be allocated funds for
its operation", he said Dr Mpango noted that the government has also
allocated funds for ongoing projects such as upgrading of the Central
Line to SGR level, which would consume 1trn/ this financial year alone,
and a total of 800bn/- for the coming fiscal year.
The National Development Plan spells out
seven priority areas, which include the construction of the Central
Line at Standard Gauge, the revival the Air Tanzania Company,
implementation of the Liganga iron ore and Mchuchuma Coal projects.
Other priority areas include establishment of special economic zones in
various regions such as Tanga, Coast Region, Kigoma, Ruvuma, and Mtwara,
implementation of Liquefied Natural Gas project and investments in two
sugar factories.
The minister also noted that the
government would continue to invest into other prioritized projects such
as building the basic infrastructure for the envisaged industrial
economy -- by setting up industrial sites at Kibaha in Coast Region,
General Tyre in Arusha, implementing the Soda Ash project in Engaruka
Valley and strengthening of the National Empowerment Development Fund.
Further, he noted that the government would push the implementation of
its plan to relocate to Dodoma.
“In fulfilling this plan the ministries
have been directed to set budgets for financing the workers’ welfare
through the budget allocated under their votes,” he said
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