Tanzania is budgeting over USD14bn (32.5trn/-) to fuel the country’s industrial development.
In the coming financial year 2018/19, the funds will serve to boost growth in several sectors with a key focus on energy, transport and human resources.
The country’s parliament is now in session discussing its upcoming budget that is to the tune of 32.5trn/- covering recurrent and development expenditure.
Finance and Planning Minister, Dr Philip Mpango presented the proposed budget before the House highlighting a 0.8 percent increase in development projects funding which represents 37 percent of the budget.
To cover the cost, 82.3 percent of the development expenditure will be from internal sources while 17.7 per cent will be sourced from foreign funds.
In his presentation, Dr. Mpango said the new budget estimates will focus on key development projects to propel an inclusive industrial economy.
Key Development Projects (37% of the budget)
- Mchuchuma (coal)
- Liganga iron ore
- 2100MW Rufiji Hydropower
- Dar-Morogoro-Dodoma standard gauge railway (636km)
- Revival of national flag carrier -Air Tanzania Company Limited (ATCL)
- Construction of Hoima-Tanga crude oil pipeline
- Lindi liquefied natural gas LNG plant\
- Mkulazi Sugar Factory
- Kurasini modern logistic- centre
- Srengthening economic processing zones in Bagamoyo and Kigamboni.
During the FY 2017/18 the government proposed to collect and spend 31.712 trn/-. As of January, this year, the state had collected 85.0 per cent of the total budget estimates or 17.401trn/-. Of the 17.4trn/-, the state released 13.349trn/- for recurrent expenditure and 4.052trn/- for development expenditure.
Dr Mpango says the new draft budget estimates 20.468trn/- for recurrent expenditure with 10.004trn/- chiefly allocated to clear the public debt that now stand at 47.756trn/-.
Funding The Budget
- Internal sources 20.894trn/-
- Borrow: Local sources 5.793trn/- and
- Foreign markets 3.111trn/-
- Development partners 8 percent c)
- Non-tax revenues 2.158trn/-.
Dr Mpango reiterated government’s intention to support industries and processing factories that use locally produced raw materials including minerals and natural gas.
The government also plans to restructure Small Industries Development Organisation (SIDO) and the Centre for Agricultural Mechanisation and Rural Technology.
The production of soda ash at Engaruka valley is also up for a boost as well as other medium sized factories.
The House was also reassured of budget commitment to development of human resources particularly improved access to water, health, education and electricity.
ALSO SEE: https://www.exchange.co.tz/tanzania-econ-resilient-amid-high-npls/