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IMF: Uchumi wa Tanzania Kukua Kwa -1%

Discussion in 'Jukwaa la Siasa' started by BAK, May 5, 2011.

  1. BAK

    BAK JF-Expert Member

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    IMF sounds alarm over Tanzania economy Wednesday, 04 May 2011 22:58

    By Al-amani Mutarubukwa
    The Citizen Reporter


    Dar es Salaam. The International Monetary Fund (IMF) is concerned about Tanzania’s increasing borrowing for recurrent spending. Presenting a report titled Regional Economic Outlook: Sub-Saharan Africa yesterday in Dar es Salaam, IMF senior resident representative John Wakeman-Linn urged the government to immediately review its fiscal policy to curb high debt levels taking into consideration the fact that food and fuel prices are rising and are likely to harm the economy.

    “For the last five years, Tanzania has increasingly borrowed to finance recurrent expenditure while tax revenues have stagnated,” he said. “Without a change in the fiscal policy, debt levels will rise rapidly.”

    The government budget for 2010/2011 was Sh11.1 trillion. Of the amount Sh6 trillion was to be raised from domestic revenue and the rest from domestic loans and external grants and credit.

    However, the IMF noted that it would be judicious for the government to hire more teachers, health care and agricultural workers. Economists and financial gurus are worried that increased government borrowing from commercial banks will have a “crowding out effect”, meaning a reduction in private consumption or investment that occurs because of a rise in government spending.

    This is the case because more government borrowing to finance its spending would increase interest rates, leading to a reduction in private investment. “I think there is a need for the government to tighten the expenditure discipline, and one way could be to re-introduce cash budgets. Otherwise, the increasing borrowing is really threatening the economy,” Infotech chief executive officer Ali Mufuruki told The Citizen.

    Meanwhile the IMF has lowered Tanzania’s economic growth forecast by one per cent this year to six per cent due to rising food and fuel prices and problems of power generation, caused by delayed rains.

    The IMF forecast growth in 2011 and 2012 to be 7.2 and 7.5 per cent respectively. But Mr Wakeman-Linn said yesterday that the continued power shortage and other global phenomena like high oil and food prices had prompted the fund to revise its economic forecast for Tanzania. “We anticipate a fall in activity early this year thus the growth is projected to be six per cent. However, solid growth prospects are projected for the years ahead if the recommended fiscal adjustments are made. “

    He said the government might need to quickly seek immediate solutions to curb the increasing rising food and fuel prices, which are clearly having an impact on poverty, inflation, and would have an impact on GDP.

    In its latest monetary policy statement, the Bank of Tanzania reported that it would cushion the economy from effects of higher crude oil prices and chronic energy shortages. It targeted the economy to grow at 7.1 per cent this year.

    “The Bank of Tanzania will... take additional measures to curb the effects of the above cost-push factors on domestic prices, and ensure that the growth of monetary aggregates remains within targets for the year ending June 2011,” noted the statement.

    East Africa’s second biggest economy grew by seven per cent in 2010, due to strong performance in agriculture, construction, manufacturing, transport, communications, fishing and real estate. However, analysts have warned that the economy faces some downside risks driven by the recent rises in global oil prices, high domestic electricity tariffs and power outages.

    Although the situation has not reached alarming levels, they say urgent measures should be taken to check the situation. Such steps should include reducing oil taxes and coming up with a lasting solution to power problems.


    The state-run Tanzania Electric Supply Company raised tariffs by 18.5 per cent in January, two months after it introduced power cuts, mainly because drought caused water levels to fall abysmally low at hydropower stations.
     
  2. Kigogo

    Kigogo JF-Expert Member

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    hapo ****** ndo wanamchanganya kabisa atawauliza hivi recurrent expendicha ndo nn mkulo?ataaagiza tu hebu tuchapishe noti kuondoa hiyo rikarenti expendicha
     
  3. Baba_Enock

    Baba_Enock JF-Expert Member

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    Kikwete yupo Cape Town - on borrowed money!
     
  4. M

    Mdondoaji JF-Expert Member

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    Nchi inayokosa vipaumbele sishangazwi kuona taarifa kama hii. Perhaps wakisema hawa mabwana wakubwa watawasikiliza maana ukisema humu JF unaambiwa wewe ni Chadema. :bange:
     
  5. The Prophet

    The Prophet JF-Expert Member

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    mwaka jana ulikuwa kwa 7%. Mwaka huu unatarajiwa kukua kwa 6%.


    Gonga hapa ujiridhishe:

    IMF sounds alarm over Tanzania economy



    My take: Wameituhumu IMF kwamba ina-finance Chadema. Now they (IMF) hit back!
     
  6. Steve Dii

    Steve Dii JF-Expert Member

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    Spending bila uzalishaji, serikali kuu hadi za mitaa... gavana, manaibu, mawaziri, wabunge wote wanalipwa mishahara utafikiri wako ndani ya Taifa linaloingiza dollar billioni 10 kila mwezi katika hazina yake!! Uhayawani wa kupenda maisha ya anasa huku tukitegemea misaada, kuanzia Rais wa nchi hadi watoto wa shule za vidudu!!!
     
  7. Maundumula

    Maundumula JF-Expert Member

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    Acha kutu mislead mheshimiwa

    hesabu ulisoma wapi?
     
  8. K

    Kamundu JF-Expert Member

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    Ndugu kunatofauti kubwa ya +6 na -1 na uwe makini na mahesabu yako
     
  9. GeniusBrain

    GeniusBrain JF-Expert Member

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    Are you using compound method or straight line method ? Nijuavyo wanavyo compute hali ya uchumi wanatumia compound , kwa maana hiyo argument yako haitakuwa sawa kuwa umekuwa kwa 1%, rudi darasani kajifunze hesabu
     
  10. The Prophet

    The Prophet JF-Expert Member

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    mkuu hasi na chanya nilisoma tangu la 5 (kama sikosei). mwaka jana uchumi ulikuwa kwa 7%. mwaka huu utakuwa -1%.

    7% + (-1%) = ?

    toa jibu mwenyewe.
     
  11. Deshbhakt

    Deshbhakt Senior Member

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    Yet another interesting report but alas, no action(s) will taken-as usual!!
     
  12. Manumbu

    Manumbu JF-Expert Member

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    kuna mashaka siku zote na official statistics zitolewazo na watawala wetu. ukuaji wa uchumi, ufaulu wa mitihani, wagonjwa na uambukizwaji wa ukimwi nk.
     
  13. Ciril

    Ciril JF-Expert Member

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    May 6, 2011
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    Kila siku Bara la Afrika hususani Watanzania ni masikini wa kutupwa,sijui tutafika lini kule ambapo wenzetu wapo walau kupata viongozi bora watakaokuwa chachu ya maendeo ya taifa hili la Tanzania lenye utajiri wa maliasili za kutosha lkn wananchi wake mlo wenyewe unategemea huruma ya Mungu
     
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