Acting shadow Minister for Finance and Planning David Silinde told the national assembly yesterday that despite the various changes in economic systems that the country has undergone, it has failed to remove the country and its people from abject poverty.
The social market economy is a socioeconomic model combining a free market capitalist economic system alongside social policies that establish both fair competition within the market and a welfare state
“The challenges to our economy is because we have an outdated economic system which does not match with the current global situation, the opposition therefore proposes the overhaul of the economic system if we are to move out of poverty,” he said.
He said the opposition will allocate 20 –per cent of the total budget to Agriculture, Education (20-per cent), industries (15-per cent) and 10- per cent to water and health sectors respectively.
He said it was sad to see that 40-pe cent of the 2019/20 development budget had been directed to three projects namely Stieglers Gorge, Standard Gauge and the revival of the Air Tanzania Company Limited (ATCL) instead of investing more on projects that touched directly on people’s lives.
According to Silinde the opposition will service the national debt with 7trn/- instead of 10 trn/- as proposed in the national budget by Finance Minister Dr Philip Mpango.
Silinde who is also the MP for Momba said the government has failed to follow the five year development plan which it prepared which states ‘that commercially viable projects should be left to the private sector, unless there is strong justification for doing otherwise’.
Speaking when he presented budget estimates for the year 2019/20 Dr Mpango said during the same period, the government was able to meet almost all of its macroeconomic targets in 2018, with inflation rate going down to 3.5 per cent, the lowest in 40 years.
He attributed the low inflation rate largely on bumper harvest last season where a total of 15.9 million tonnes of food crops were harvested against the country’s requirement of 13.3 million tonnes.
According to the Minister Tanzania cemented its middle income status last year by raising its per capita Gross Domestic Product (GDP) to $1,090.