Tz spending up by 31%
Jun 11, 2009
EAST AFRICAN BUDGETS 2009<br><br>DODOMA<br>Tanzania will increase spending by 31% in 2009/10 to Tsh9.51 trillion ($7.29b), with a third of funding coming from donors, according to finance minister Mustafa Mkulo’s budget read yesterday.
EAST AFRICAN BUDGETS 2009
DODOMA
Tanzania will increase spending by 31% in 2009/10 to Tsh9.51 trillion ($7.29b), with a third of funding coming from donors, according to finance minister Mustafa Mkulo’s budget read yesterday.
Like its east African neighbours Kenya and Uganda, the Tanzanian government put emphasis on farming, schools, health and infrastructure to ease strain from the global economic slowdown. Those sectors will take nearly half of the spending.
Development expenditure will be Tsh2.8 trillion, Mkulo told parliament in her budget reading. Donors will fund 33% of the budget, compared to 34% the previous year.
The global slowdown has hit Tanzanian tourism receipts, its biggest foreign exchange earner, dented demand for its coffee and cotton exports and prompted foreign investors to suspend significant projects in the mining sector.
Known for stability that has attracted foreign investors, the second biggest economy in the region’s five-nation economic bloc depends mainly on farming, mining and tourism.
Sectors such as manufacturing, construction, telecommunications and financial services have contributed increasingly to recent strong growth rates in the region.
The government had hoped to slash reliance on donor funding in, but domestic receipts are likely to suffer because the global slowdown has hurt prices of commodities like coffee, cotton and horticulture and cut tourist arrivals.
The government plans to raise Tsh5.1 trillion in domestic revenue, up from a targeted Tsh4.73 trillion a year before. Tanzania also hopes to seek additional funding from countries in the Gulf and Asia.
- Reuters
DODOMA
Tanzania will increase spending by 31% in 2009/10 to Tsh9.51 trillion ($7.29b), with a third of funding coming from donors, according to finance minister Mustafa Mkulo’s budget read yesterday.
Like its east African neighbours Kenya and Uganda, the Tanzanian government put emphasis on farming, schools, health and infrastructure to ease strain from the global economic slowdown. Those sectors will take nearly half of the spending.
Development expenditure will be Tsh2.8 trillion, Mkulo told parliament in her budget reading. Donors will fund 33% of the budget, compared to 34% the previous year.
The global slowdown has hit Tanzanian tourism receipts, its biggest foreign exchange earner, dented demand for its coffee and cotton exports and prompted foreign investors to suspend significant projects in the mining sector.
Known for stability that has attracted foreign investors, the second biggest economy in the region’s five-nation economic bloc depends mainly on farming, mining and tourism.
Sectors such as manufacturing, construction, telecommunications and financial services have contributed increasingly to recent strong growth rates in the region.
The government had hoped to slash reliance on donor funding in, but domestic receipts are likely to suffer because the global slowdown has hurt prices of commodities like coffee, cotton and horticulture and cut tourist arrivals.
The government plans to raise Tsh5.1 trillion in domestic revenue, up from a targeted Tsh4.73 trillion a year before. Tanzania also hopes to seek additional funding from countries in the Gulf and Asia.
- Reuters