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2008 Budget raises worry, hope
2007-06-13 08:52:55
By Bilal Abdul-Aziz
The local media have over the last two weeks or so been running stories on ministerial draft proposals for the next financial year.
However the latter came to an end last week when Clerk of the National Assembly, Damian Foka, announced a controversial ban that has recorded new history in the country's parliament reporting.
Foka, who called a press conference in Dar es Salaam on Friday, last week said from now on activities of the House Committees will be done behind closed doors, completely out of reach of media, until they are officially tabled in parliament for discussion.
According to the House Clerk, the decision was `in partial implementation of House Standing Orders` that prohibits the release of information on the activities of the committees before they are tabled in the august House.
The ban has sought to overshadow the otherwise excellent coverage of draft and ministerial proposals, as they were being presented in respective standing committees in the countdown to this year's budget sessions.
However, the particular ban or `shadow` rather, is not a point of discussion in my analysis this week.
I would like today`s discussion to exclusively deal with the 2007/08 budget based on the budget draft presented by Finance Minister Zakia Meghji before the Parliamentary Committee on Finance and Economic Affairs mid last week in Dar es Salaam.
Meghji briefed members of the committee under the chairmanship of Dr Abdallah Kigoda that the total revenue for the next fiscal year is expected to reach 6.1tn/-, to be raised from both local collections and donor funding, also hinting that the government would withdraw from the central bank (BoT) reserves, as it did last year.
She indicated that next year's revenue would be enough to enable the government not to borrow locally through government securities, as current weather forecast had signaled good or rather encouraging hopes.
According to Meghji, higher interest rates on Treasury Bills and Bonds have put a burden on the government, turning the whole exercise of filling up budget deficit gaps not beneficial.
In the last fiscal year, the government withdrew 35.92bn/- from the BoT.
The 6.1tn/- proposed budget is 1.2tn/- more compared to last year's, raising hopes and worries at the same time over means that the government is going to employ, in addition to stepping up revenue collection measures, in getting such a big amount.
Meghji however did build `a war of defence` on the same day saying that the estimates were impressive due to concerted efforts in revenue collection that the office through respective officials and agencies would put in place to collect more revenue in the coming financial year.
She said her ministry would vigorously expand the revenue collection base, eyed upon the completion of the 2nd phase of the business and property formalization programme commonly known as Mkurabita next March.
The other way would be facilitating and sustaining economic growth whose gross domestic product is expected to grow at 7.3 per cent this year, said Meghji, adding that the economic growth would improve performance of the business sector and thereby increase revenue.
Regarding the contribution from donors, she said the donors have pledged to give 2.549tn/- for the next fiscal year, which is about 40 per cent of the total budget, being 881.3bn/- through general budget support, 273.19bn/- through basket funds and 1.189tn/- through project financing.
There is major possibility that this year’s budget debate would be hot, especially that of the infrastructure development ministry and state of the national economy for the ending fiscal year.
During the pre-budget presentation in Dar es Salaam last week members of the infrastructure committee were bitter to the extent of rejecting the proposal read before them by Infrastructure Development Minister, Andrew Chenge.
Chenge proposed 125.5bn/- budget, but legislators said the allocation was meagre and insignificant.
The legislators were absolutely right, because the Minister himself admitted that with his small budget he would be unable to undertake any new road projects.
The MPs said planning for `a zero road` the whole fiscal year was unacceptable.
They even said that they would forward the matter to the Prime Minister, Edward Lowassa.
However, no feedback has been given.
The direction of the debate in Parliament would give some answers to a few if not all questions that the legislators and the general public continue to ask, including concerns being raised regarding the proposal to increase remunerations for MPs.
The Minister of Planning, Economy and Empowerment, Dr Juma Ngasongwa, also had a hard time when members of the parliamentary infrastructure committee rejected his state of the national economy report.
The committee also rejected his projections for the next financial year, including a comprehensive report on economic growth and reduction of poverty (Mkukuta).
However, a common phenomenon in all budgets is the fact that Tanzanians would pay more in terms of taxes, something which would eat deep into their pockets.
This is because the government plans to increase its domestic revenue collection to 3.37tn/- during the next financial year.
As always, areas such as those pertaining to soft drinks, beers, beverages, cigarettes and fuel are a vital source of Government revenue through taxation.
Dr Ngasongwa, while speaking to legislators during a pre-budget meeting in Dodoma said, the government planned to spend 237.6bn/- more during the next fiscal year to fund various programmes in the education, health and environmental sectors.
He also spelt out plans to raise budget allocation for social services as well as funding for empowerment and poverty reduction programmes.
All in all, whatever is the plan the government through Meghji, Ngasongwa or any other minister should focus on improving people`s lives over the coming financial year.
In most cases, and this has been experienced over the years, government budgets normally create hopes in terms of figures, steps, measures and mechanisms.
This time around we want the budget not just to give the people hope, but relief and better life for the coming financial year.
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