Tanzania plans to raise its total spending in 2019-20 (July-June) slightly to 33.11 trillion shillings ($14.16 billion) from 32.48 trillion shillings, its Finance Minister said yesterday.
Philip Mpango said in a presentation to parliament outlining proposals for the 2019-20 budget in Dar Es Salaam that the funds would go towards improving roads, railways and rural electricity supply. He said the government planned to borrow 2.32 trillion shillings from external non-concessional sources with 2.78 trillion shillings coming from concessional loans and grants, adding that the government planned to raise 23 trillion shillings from internal revenues, and the budget would have a deficit of 2.3 per cent of Gross Domestic Product (GDP).
A final budget presentation will be made to parliament in June when the fiscal year would have ended.
Tanzania’s economy is forecast to grow at 7.3 per cent in 2019 from an estimated 7.2 per cent last year, helped by public infrastructure investments and favourable weather.
“During fiscal year 2019-20, the government will allocate 20.86 trillion shillings for recurrent expenditure, which includes provisions for 2019 local government elections and preparations for the general election in 2020,” Mpango said.