ALL
attention will be in Dodoma as the government tables the 2018/19 budget
today amid growing optimism by some Members of Parliament (MPs) on the
future prospects from robust economic growth and improved
infrastructure.
The government plans to raise 32.5tri/-
for the next financial year to improve social services and continue
financing major energy and transport infrastructure to spur economic
growth and development.
The FY 2018/19 budget will finance the
third year of the ambitious Five- Year Development Plan II (2016/17 -
2020/21) which focuses on transforming the nation from an
agriculture-led economy to a semi-industry by 2025, finally taking the
country into a middle-income status.
The budget will be read as construction of
a standard gauge railway to link the Dar es Salaam port with Mwanza on
Lake Victoria and Kigoma on Lake Tanganyika, as well as neighbouring
Rwanda and Burundi is gaining pace and the revival of the national
carrier, ATCL through fleet modernisation continues.
The government is also in final stages of
preparations to begin construction of a $3.5bn East African crude oil
pipeline project, the 1,403km pipeline to transport crude oil from Hoima
in Uganda to Tanga Port will be constructed jointly with the Ugandan
government.
Tanzania is also in final preparations for
construction of the Stiegler’s Gorge hydroelectric project billed to
add 2,000MW of electricity that will assure the nation reliable power
supply to boost its industrialisation drive.
The economy is expected to grow by 7.2 per
cent in 2018, up from around 7.1 per cent last year, underpinned by
vibrant activity in mining, transport and communication sectors, Dr
Mpango said recently here.
He told MPs that inflation rate in 2018
would be “tamed at single digit levels.” The fiscal deficit will reach
3.2 per cent of gross domestic product (GDP) in the 2018/19 fiscal year
(July-June), up from around 2.1 per cent in 2017/18, he said. Inflation
declined to 3.6 per cent year-on-year in May from 3.8 per cent
year-on-year in April, as food prices continued to fall. Some MPs
interviewed expressed optimism for further growth and development as the
economy grows strong and energy and transport infrastructure steadily
improve.
They said they expect the budget to be
more pro-growth and continue from where the 2017/2018 budget will end
financing major development projects to promote growth and development
and improve social service delivery.
Hussein Bashe (Nzega, CCM) said he expects
a budget that will stimulate economic growth and boost businesses with a
broadened scope on boosting productivity in various sectors.
“My hope is that the new one would
stimulate growth and boost productivity instead of focusing on tax
collection ... the government must shift from tax oriented to production
oriented budget,” he said.
More emphasis is also needed to improve
the business environment and improve the country in the rankings of ease
of doing business, he said.
He said the government needs also to
remove 15 per cent with-holding tax on soft drink plants to ease a huge
burden on them, he said.
Livingstone Lusinde (Mtera, CCM) said the
government must overcome the problem of under-delivery of budgetary
allocations particularly on development budgets to ensure development
goals were met.
He said the main challenge on the 2017/18
budget was that budgetary allocations were not fully implemented which
undermined efforts to meet planned development needs.
“Funds from development budget should be
delivered as they will be allocated,” he said. Deo Sanga (Makambako)
said the government and President John Magufuli need to be commended for
implementation of major development projects as outlined in the
Development Plan.
He said it needed a bold leadership to
ensure that the key energy and infrastructure projects such as
construction of a standard gauge railway and revival of ATCL were being
implemented through domestic resources.
Mr Sanga said many things have changed for
better with the revival of the national carrier, ATCL and improvements
of airports in various regions that have enhanced competition in air
transport, improved standards and lower air ticket prices.
Meanwhile, economists told the ‘Daily
News’ that Tanzanians expect the government to allocate more fund in
major development projects.
Prof Humphrey Moshi said he expects the
government to allocate more funds to sectors and infrastructure projects
that will spur the country’s industrialised economy.
“It is also my hope that we will continue
to invest in education and vocational training to produce people who
will work in these industries,” the economist told this paper in an
interview.
A senior economics lecturer at Mzumbe
University (Dar es Salaam Campus), Prof Honest Ngowi, was of a view that
the budget estimates will not be so different from previous budgets,
only that this time round the government aims to inject more funds in
development projects.
“The only thing people are eagerly waiting
to hear is tax measures to be announced by the government in the next
fiscal year; I do not, however, expect dramatic changes in tax
measures,” Dr Ngowi stated.
An economist and lecturer at the
University of Dar es Salaam (UDSM), Prof Haji Semboja, was of a view
that the financial plan will dwell much on strategies which have been
outlined by the government towards the middle-income economy.
Unlike in the past, Prof Semboja
explained, the government was now focusing on reducing funds for
consumption and instead investing in development projects which are
crucial for economic growth.
The economist proposed further for
expansion of the tax base to reduce over reliance on taxes alone and
instead look into other non-tax revenues.
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