Total revenue collection surpasses annual target

The total domestic revenue and grants on cheques issued during April this year amounted to 567.4bn/-, out of which 465.6bn/- was expenditure. This trend resulted into overall budget surplus.

The Bank of Tanzania (BoT) monthly economic review for May shows that revenue excluding Local Government Authorities (LGAs) sources was 504bn/-. It represents 87.3 per cent of the target for April. 

Tax revenue amounted to 462bn/- being 84.7 per cent of the target.This was mainly on account of the decline in imports for domestic use.

“The decline in imports is associated with pre-inspection scheme introduced by the Tanzania Bureau of Standards, and effects of membership in multiple economic groupings such as SADC and EAC, whereby goods from these blocks attract zero import duty,” stated the bank report.

In the first ten months of 2011/12, domestic revenue excluding LGAs own sources was 5.54tr/-, broadly in line with the target. Tax revenue was 3.5 per cent higher than the target and accounted for 94.3 per cent of the total domestic revenue. 

Non-tax revenue was 62.1 per cent of the target for the period under review whereby domestic revenue excluding LGAs own sources was 14 per cent of the GDP compared to 12.9 per cent posted in the corresponding period of 2010/11.

Grants amounted to 1.45tr/-, against the projection of 2.37tr/-, due to delays in disbursement of project funds by donors.

During April 2012, total expenditure was 465.6bn/- with recurrent spending hitting 414.9bn/- while 50.7bn/- was allocated for development.

Cumulative expenditure in the first ten months of 2011/12 amounted to 7.56tr/-.This is an equivalence of 74.9 per cent of the estimates. Out of the total amount, recurrent expenditure was 5.13tr/- while development got 2.43tr/- which is equivalent to 83.3 and 61.9 per cent of the period estimates respectively. 

The moderate government expenditure was largely explained by delays in disbursement of foreign aid.

The government budgetary operation for the first ten months of 2011/12 resulted into an overall deficit of 1.13tr/-. This was financed by foreign loans which stood at 914.4bn/- and a net domestic borrowing of 224.7bn/-

Source: The Daily News,http://www.dailynews.co.tz, reported by Sebastian Mrindoko

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