As Tanzania announces the National Budget for fiscal year 2023/2024 many residents are wondering how well the previous years’ ones got executed.
The Finance and Planning Minister, Dr Mwigulu Nchemba presented the 2023/24 budget estimates which has now ballooned by seven (7) percent to 44.38 trillion/-.
The previous financial year’s budget of 2022/2023 was estimated at 41.48 trillion/-.
Claims to that effect are that the new budget aims to stimulate economic growth, create jobs, and improve social services. There is more boost to the agriculture sector.
Mwigulu is also convinced that the size of Tanzania’s economy in terms of GDP has increased by USD 15.5 billion within a period of three years.
People have been told that there are plans to increase revenue collection and control expenditure to maintain fiscal stability.
Key sectors such as agriculture, manufacturing, and tourism are expected to receive significant allocations to boost their contribution to the economy.
The budget also, as per claims, aims to improve infrastructure, particularly roads and energy, to facilitate economic activities.
The government plans to finance the budget through domestic revenue collections, grants, and concessional loans.
The Tanzania Revenue Authority (TRA) is expected to collect 23.34 trillion/-, accounting for nearly 53 percent of the total budget.
Despite the anticipated increase in the budget, there are some concerns among experts, about the country’s debt sustainability.
Observers suggest that the government should focus on increasing domestic revenue collection and managing public expenditure to avoid excessive borrowing.
Meanwhile Tanzania’s macroeconomic objectives and targets for fiscal year 2023/24 include expanding Gross Domestic Product (GDP) growth to 5.2 percent in 2023 from 4.7 recorded in 2022
The country intends in the medium term, to maintain inflation within the single digit range of 3.0 percent to 7.0 percent.
Keep domestic revenue at 14.9 percent of GDP in 2023/24 from about 14.4 percent in 2022/23.
Increase Tax revenue at 12.0 percent of GDP in 2023/24 from 11.5 percent in 2022/23
Ensure that the Budget deficit (including grants) remains less than 3.0 percent of GDP in 2023/24 and maintaining sufficient foreign exchange reserves to cover for at least 4.0 months of imports.