TANZANIA 2015/2016 GOVERNMENT BUDGET CRITICISED

By Saumu Mwalimu and Henry Mwangonde,  THE  CITIZEN.

Posted  Saturday, May 30  2015 at  10:03

IN SUMMARY

It said that nothing has been learnt from the financial year 2014/15 which saw revenue shortfalls because the spending as per plans did not match with what was actually disbursed thus affecting various development projects.

Dar es Salaam. Policy Forum Tanzania has described the 2015/16 national budget, currently being discussed in Parliament, as unrealistic.

It said that nothing has been learnt from the financial year 2014/15 which saw revenue shortfalls because the spending as per plans did not match with what was actually disbursed thus affecting various development projects.

According to the pre-budget proposal by Finance minister Saada Mkuya, the budget has been raised from Sh19.8 trillion in the current fiscal year to Sh22.48 trillion for the next one.

Although the Forum commended the move to increase the budget ceiling, it still doubts whether the government will actually be able to collect enough money to finance it effectively. According to available estimates, the government plans to raise Sh14.82 trillion from its own sources.

The proposal indicates that, Tanzania Revenue Authority is expected to collect Sh13.35 trillion, non-tax revenue will bring in Sh949.2 billion while local authorities are expected to collect Sh521.9 billion.

In a press release on the Budget 2015/16 position published in this paper yesterday, Policy Forum said that the implementation of the previous budget did not provide reassurance that the forthcoming one would be executed effectively.

“For example until March 2015 only 38 per cent of the development budget had been disbursed, this literally means that more than 50 percent of the earmarked development project have not been implemented to the full with less than three months before the financial year ends.

“One would therefore doubt the increase in budget without a clear statement as to how the funds will be raised,” reads the press release.

The Policy Forum is also calling on the need to improve transparency in the budget making process noting that the recently released Controller Auditor General (CAG) report indicates there are huge problems in how public monies are handed and spent.

“As CSOs we have learnt that during the preparation of the budget estimates the Parliamentary Budget Committee was not involved, this raises questions about the integrity of the whole budget process as the committee is mandated to oversee and advise the government on different options for raising revenue as well as allocating these resources hence it has to be consulted,” reads part of the the statement.

Focus on Education

Policy Forum said the government should clear the long standing challenges facing education sector which include inadequate capitation grants, unimplemented policy and unresolved stakeholder’s grievances.

Regardless of the amount allocated to the sector, Policy Forum insists that due consideration should be given in explaining the fee-free education narrative that the government has decided to embark on. The government should clearly state how it plans to ensure the policy is implemented as it has already begun to cause some tensions between parents and school officials over school contributions.

At a breakfast debate organised yesterday over the same issue participants were of the view that the government must use to the maximum the available resources to education.

They said the fact that the education sector’s proposed spending for 2015/16 financial year is Sh3.9 trillion about 80 per cent of the said money is proposed for recurrent expenditure and only 16 per cent is earmarked for development expenditure.

The debate was organised by Policy Forum and was aimed at discussing how the government is using its available resources towards health and education sectors.

According to them, this was the reason why the Prime Minister’s Office Regional Administration and Local Government (PMO-RALG) fails to deliver during implementation of planned projects like providing capitation grants, building new classrooms, toilets and teaching and learning materials.

A programme and research analyst with HakiElimu, Mr Makumba Mwemezi, said it is high time the government gave priority to the education sector above others only in terms of budget figures and not actual expenditures.