Tanzania unveils FY 2016/17 Tzsh22.9trn budget
The Government of Tanzania on Monday tabled the 2016-2017 budget framework indicating a slight increase in expenditure from the current Tzsh22.49trn to Tzsh22.9trn.
The newly drafted development plan is envisions an increase in domestic revenues by 14 per cent and a subsequent reduction in foreign borrowing by 3 per cent.
Dr. Philip Mpango, Tanzania’s Finance and Planning Minister highlighted during the ongoing 11th parliament in Dodoma, that the government is expected to generate Tzsh14.106trn in tax and Tzsh1.694trn from non tax sources including collections in municipal councils.
“The government will borrow Tzsh3.3trn through treasury bonds, about Tzsh2.76trn will be payment of matured government treasury bills,” he told the house adding “Development partners will contribute Tzsh2.107trn in grants and loans.”
The above figures represent an approximate 9.3 percent reduction in aid from development partners as per Fiscal Year 2015/2016.
The finance minister explained that the government was moving to tighten-up revenue collection mechanisms to fill gaps of foreign dependence. He said the areas to be revisited include cutting wasteful government spending and tax exemptions.
the minister said Tzsh5.812trn will be generated from international trade taxes, Tzsh3.920trn from domestic taxes and Tzsh5.298trn will come from direct sources; levies, corporate tax and withholding tax.
“A total of Tzsh16.809trn out of the proposed budget is for recurrent expenditure of which Tzsh6.651trn will be apportioned to pay state workers during the financial year,” he noted
Mr. Mpango added that 77.8 percent of the Tzsh6.18trn for development will come from local sources.