Govt expenditure hits 5tr/- mark

BoT HQ in Dar.
Total government recurrent expenditure for the first three quarters of 2011/12 hit 4.70tr/-, almost double the development spending of only 2.38tr/-.

While consumption spending reached 86.1 per cent of the period estimates, development projects spent only 69.4 per cent of the budgeted amount.

According to the Bank of Tanzania’s (BoT) monthly economic review for April, the total government expenditure for March 2012 was 768bn/-, measuring 78.8 per cent of the estimates, with recurrent expenses eating 663bn/- and 105bn/- going to development.

In the meantime, total domestic revenue and grants during March amounted to 714.9bn/- resulting into an overall deficit of 19.6bn/- after adjustment to cash when compared to entire expenditure of 768bn/-.

“The deficit was however financed by net domestic borrowing amounting to 2.1bn/- and net foreign borrowing amounting to 17.5bn/-,” stated the central bank report.

In the period under review, revenue excluding Local Government Authorities (LGAs) own sources was 671.3bn/-, equivalent to 5.4 per cent higher than the target for March 2012.

Tax revenue amounted to 645.7bn/- being 37.3 per cent above the target for the period in question. 

According to BoT report, good performance was observed in all tax categories associated with intensified tax audit, corporate tax payment by mining sector and increase of transactions subject to withholding tax and stamp duty in sectors of telecommunication, oil and gas.

In the first three quarters of 2011/12, domestic revenue with exclusion of the LGAs own sources amounted to about 5.04tr/-, in line with the target. Tax revenue accounted for 94.6 per cent of the total domestic revenue, and the balance was non-tax revenue.

During the period, domestic revenue excluding LGAs own sources was 13.1 per cent of the Gross Domestic Product (GDP) compared to 12.2 per cent recorded in the similar period of 2010/11.

Similarly grants amounted to about 1.38tr/-, against the projection of 2.17tr/-, due to delays in disbursement of project funds.
Source: The Daily News, http://www.dailynews.co.tz, reported by Sebastian Mrindoko
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