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Living up to budget sweet promises
2006-06-21 10:23:40
By Editor
The mental vision of the budget positions the government between two receptacles. Tthe first seeks to raise revenues from all possible sources while the second is full of promises about how and where spending would be focused to spur development.
In a developing country like ours, the poor are taxed, while donors are asked to chip to cover perennial deficits, which is more than 80 per cent for development spending.
The incumbent administration has boldly decided to jump out of the old fiscal stereotype where development spending had been relegated as a second-hand state obligation, wrongly dispensing the noble responsibility to donors, of whom are required anyhow to make good their pledges.
We have heard that internally generated revenues for funding development projects would get higher from 15 to 26 per cent, and that much of it goes to developing infrastructure network, with a view to reducing economic costs of doing business in Tanzania.
In addition, it sounds nice to hear that part of it would be spent on augmenting TANESCO’s power generation capacity by 145MW in order to curtail the adverse economic impact of power load shedding.
The overall plus for 2006/07 budget is its potential in establishing the necessary fiscal, human and physical environment supportive to long-term development goals as defined in National Strategy for Growth and Reduction of Poverty (NSGRP), popularly known as MKUKUTA.
The much hyped CCM manifesto targeting multiple job creation for the youths is dazzling idea, yet not an agenda to be achieved through short-term strategies.
The private sector remains the last resort for salvaging employment in Tanzania, as well as sustaining those already who are gainfully in a job.
Enterprises know what to do, as long as investment and political climates are stable and predictable.
At its best the financial plan indicates its seriousness in reforming all the existing credit guarantee schemes so as to make them functional and more efficient in meeting their goals.
Every serious investor is eagerly waiting for the rejuvenation of the Tanzania Investment Bank (TIB) into an effective nationwide development financial institution with ability to provide term lending.
All things considered, the testing ground of the promised sweet budget rests on proper implementation of the expenditure plan guided by the principles of good governance.
President Kikwete’s administration has objectively demonstrated undeterred resolve to fight against embezzlement of public assets.
We can now hope that no more than keeping tabs to rule of law could the proposed Finance Bill turn into a real anti-poverty tool.
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