Tuesday, 2 February 2016

Govt to spend 22.9tri/- in 2016/17

 
The amount is an increase of 2.2 per cent compared to the budget of 22.495tri/- pegged for the current 2015/16 fiscal year which ends on June 30, 2016. In the same development, Dr Mpango said donor dependency is expected to be reduced by 9.3 per cent in 2016/2017; the opening year for the second Five-Year Development Plan straddling 2016/17 to 2020/2021.
Development partners are envisaged to pump in 2.107tri/- in loans and grants in the next financial year which is 9.3 per cent less compared to the amount pledged in the current year, he stated.
“The government looks forward to collecting 14.139tri/- from taxes, including Treasury Vouchers (TVCs), which is equivalent to 13.2 per cent of the Gross Domestic Product (GDP).
This translates to an increase of 15 per cent compared to the estimates of 12.307tri/- this year,” Dr Mpango explained. The Minister told the House that in 2016/17, the government plans to spend 16.807tri/- on recurrent expenditure out of which 6.651tri/- will be salaries while spending on development projects has been pegged at 6.182tri/-.
“We expect to raise 4.810tri/- from internal sources to fund development projects and this is 77.8 per cent of the total amount,” the former World Bank economist remarked.
In the coming fiscal year, according to Dr Mpango, a big chunk of funds allocated for development will be spent on improvement of social services while the remaining amount will be invested as equity in revenue generating projects.
In the same line, the state will make best use of public-private partnerships (PPPs) arrangement to fund development projects in a bid to reduce the load on the government in implementing such ventures, he noted.
Dr Mpango went on to point out that in the next fiscal year the internal revenues from taxes, non-revenue sources and collections from local government authorities have been estimated at 15.801tri/-.
“The sum is equivalent to 68.7 per cent of total obligations compared to 62.2 per cent pegged for the present year,” he explained. The Treasury expects to collect taxes amounting to 14.106tri/- as well as 1.110tri/- and 584.4bn/- from non-revenue and collections local authorities, respectively.
On the other hand, Dr Mpango highlighted that the government will borrow 1.782tri/- from foreign sources in commercial loans in addition to 3.300tri/- from domestic sources including payments of 2.766tri/- for treasury bills and bonds set to mature.
The Chairperson of the Parliamentary Budget Committee, Ms Hawa Ghasia (Mtwara Rural-CCM) challenged the government to release on time funds allocated for development projects. Presenting the views of the committee, Ms Ghasia noted with concern that many projects countrywide have stalled due to delays in disbursement of funds.
“My committee is of a view that it is high time the government used cash in the Oil and Gas Fund to implement these development projects,” the former minister charged.
Earlier in the morning session, the august House was embroiled in a heated debate after MPs from the ruling and opposition differed on whether the tabling of the plans was in breach of Article 63 (3) (c) of the Constitution and Standing Order number 94 of the Parliament.
After hot exchanges pitting Opposition Chief Whip Tundu Lissu (Singida East-Chadema) and Kigoma Urban MP Zitto Kabwe (ACT-Wazalendo) on one hand and a number of CCM legislators on the other, the House finally reached a consensus on the matter.
Mr Lissu and Zitto had argued that the tabling of the framework was in contrary to regulations an argument which was contested by Kigoma North MP Peter Serukamba (CCM) and Mr Adam Mwakasaka (Tabora Urban-CCM), Ms Mary Nagu (Hanang-CCM) and Ms Ghasia.
The Minister of State in Prime Minister’s Office, Ms Jenista Mhagama, shamed the opposition lawmakers when she revealed that the matter had been sorted out during the Steering Committee last Friday which was attended by Mr Lissu as a representative of the Leader of the Opposition

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