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Govt challenged to cut expenditure

1st June 2012
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Swedish Minister of Finance Anders Borg

The government has been advised to cut down its expenditure and increase productivity in order to strengthen economic growth of the country and its people.

The call was made yesterday in Dar es Salaam at a roundtable discussion and open lecture with Swedish Minister of Finance Anders Borg held at the University of Dar es Salaam (UDSM).

At the discussion, which brought together economists, experts and academicians, Borg said the government needed to put more emphasis on education, energy and infrastructure and reduce its spending.

The minister said a number of countries, including China in Asia and Sweden in Europe, at some time lagged behind economically due to inflation and poor financial policies, but fundamental changes in economic policy had now made them strong economically.

The minister faulted the government’s overspending on agriculture schemes while sidelining the transport sector, warning that it was very dangerous for economic progress.

“For a country to economically grow, it needs to regulate market activities and have a good transport network,” he said.

Contributing to the discussion, Prof Issa Shivji faulted the government's overdependence on developed countries, saying economic development will not be attained through aid and loans.

He said for economic growth the government needed to redefine its transport facilities, especially railways and marine, rather than roads which are very expensive in terms of maintaining and usage.

SOURCE: THE GUARDIAN
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