BUDGET 2012/13 updates: Taxes covers only 50% of budget

Government targets to collect domestic revenues (excluding LGAs own source) amounting to 8.72tr/- equivalent to 18 percent of (GDP), but the amount can only finance the budget by half.

Out of this amount, 7.2tr/- is tax revenue and shillings 644.6 billion is non-tax revenue. Revenue from Local Government Authorities is projected at 362.2bn/- equivalent to 0.7 percent of GDP.

In 2012/13 budget, the government intends to borrow 1.632tr/- from domestic market. Out of this amount, 483.9bn/- equivalent to 1 percent of GDP is for financing development projects and 1.15tr will be used to finance the rollover of maturing Treasury Bills and Bonds.

The level of borrowing has taken into consideration macroeconomic indicators in order to avoid crowding out of private sector.
Source: tzexchange.blogspot

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