Cracks in Mgimwa's Budget

[BAK]

Cracks in Mgimwa’s Budget

Saturday, 16 June 2012 09:28

Apart from lacking clear and realistic targets, the Budget has imposed new taxes and exemptions that analysts say are akin to putting money in a pocket with one hand and taking it away with the other By The Citizen Reporters Dar es Salaam. The 2012/13 Budget is full of cracks and lacks clear national focus, according to experts. Apart from lacking clear and realistic targets, the Budget has imposed new taxes and exemptions that analysts say are akin to putting money in a pocket with one hand and taking it away with the other. Speaking at the budget review forum organised by the international consulting firm Ernst & Young in Dar es Salaam yesterday, some experts said the Budget was a futile attempt to please everybody. Twiga Cement CEO Pascal Lessoine said the financial plan had no clear dimension that could be understood.“It shows some ice and sugar. It is like mixing sugar and salt because it has positive and negative aspects,” he said. A senior economics lecturer at Mzumbe University, Dr Honest Ngowi, said conditions were not conducive for the attainment of targets set in the Budget. He said the setting aside of 70 per cent of the Budget for recurrent expenditure and allocating just 30 per cent to development was ill-advised, adding that development expenditure was supposed to range between 40 and 50 per cent. Dr Ngowi listed other flaws as raising tax on airtime from 10 to 12 per cent, saying this would adversely affect the development of ICT, and not taxing businesses earning up to Sh3 million a year while taxing workers earning over Sh170,000 a month. “There is lack of tax justice and fairness when businesspeople earning up to Sh3 million are not taxed. Sh170,000 multiplied 12 times is less than Sh3 million, so the businessman earns more than the worker getting Sh170,000 a month, yet the latter is taxed while the former is not. It should also be taken into account that businesspeople can lie about their incomes as opposed to workers,” he said. Dr Ngowi added that the quest to bring inflation down to single digits could never be succeed under conditions set by the 2012/13 Budget because the application of monetary tools to curb inflation could not work. “Our inflation is structurally-based. This kind of inflation cannot be cured by the application of monetary policies. “Our problem is that we wait for shortcomings to become apparent and them embark on addressing them without having a clear strategy. It’s like waiting for a disease to strike without first preparing the curative measures,” Dr Ngowi said. For his part, a senior lecturer at the Business School of the University of Dar es Salaam, Dr Elinami Minja, said it was a “hand-to-mouth” Budget in that it does not comprehensively chart a clear development path. He added that there were too many priorities to the extent that there were no clear strategies on how some of the plans could be successfully implemented. “The Budget is too broad. It’s not well focused. It was supposed to focus on a few key sectors three or four sectors,” Dr Minja said. Private business consultant Evans Rwegasira aired similar views, arguing that there was no clear strategy aimed at maintaining financial discipline and preventing unnecessary spending. He expressed doubt on whether Tanzania could attain its goal of becoming a middle-income country by 2025, saying there was a tendency to set the same targets without having sound means to attain them. In another forum organised by KPMG, economic and tax experts poked holes in the Budget, saying it had failed to meet people’s expectations on development. They said the government intends to reduce poverty, but the Budget did not outline a specific strategy towards this end. Prof Humphrey Moshi of the University of Dar es Salaam said it was not possible to realise growth and poverty reduction without putting more emphasis on agriculture. He said that while the minister had outlined a general plan on agriculture, failure to focus on irrigation farming was a serious oversight that would hamper Tanzania’s quest for an agricultural revolution. Prof Moshi said the impact of economic growth on poverty was not significant because sectors like agriculture were not growing. “We need to invest more in agriculture to realise tangible economic growth, but lack of political will to invest in irrigation farming despite rains being so unreliable will not take us anywhere,” he said. Prof Moshi said by importing cheap food, local communities would be discouraged from producing their own food, leading to a scramble for the imports. KPMG managing director David Gachewa noted that reduced duty on sugar and wheat might not achieve the desired results due to a shortage of the commodities in the world market. He said there was no hope for workers as they were not adequately considered in the Budget, adding that they would continue paying more in terms of taxes to the government. Mr Gachewa also said the minister did not clearly indicate how revenue would be increased substantially, adding that measures aimed at expanding the tax base were negated by high tax exemptions.He criticised the proposal to charge those who wanted their names to appear on vehicle number plates Sh5 million. “It is not very clear how many people may opt for this because no research was done to prove that it can earn the government more revenue,” Mr Gachewa said. Speaking in separate interviews, experts and opposition politicians also voiced their concern about the many cracks in the Budget.“The 2012/13 Budget is actually six per cent smaller than the 2011/12 Budget if inflation is taken into account, and this means that it is going to be a tough year,” said Ms Rose Aiko of Uwazi Twaweza. “The 2012/13 Budget amounts to Sh15.1 trillion, which in nominal terms is an increase of 11.8 per cent from the Sh13.5 trillion Budget of 2011/12. This is only true in face value, not real value.” Prof Ibrahim Lipumba, chairman of the opposition CUF, said the biggest flaw in the Budget was the much smaller allocation to development compared to recurrent expenditure. “I am surprised that development expenditure has gone down once again and is now only 30 per cent of the Budget. We are not doing enough on development and this is a sign of lacking strategic thinking,” he said. NCCR-Mageuzi chairman James Mbatia said Tanzania’s currency continues to depreciate, while inflation remains high. “Internal revenue is only Sh8 trillion and this shows we still have a hill to climb as we strive to improve people’s lives,” he said.

 

[politiki]

hawa wataalam wote walichokisema kwa lugha safi ya kiswahili ni kuwa viongozi hawa wanatuibia pesa zetu za kodi kwa kutumia chombo kinachoitwa serikali kwa ajili ya kuboresha maisha yao binafsi. in other words they use false pretense to collect money in the name of improving social services but in actual the money ended in their pockets through washa, posho, endless seminars and other bogus means to justify their theft.

 

[BAK]

Chadema, CUF waungana kuikataa Bajeti

Saturday, 16 June 2012 20:29

LIPUMBA AAGIZA WABUNGE WAKE KUIPINGA KWA NGUVU,CHADEMA WASEMA HAIFAI Mussa Juma na Neville Meena, Dodoma Mwananchi MWENYEKITI wa Chama cha Wananchi (CUF), Profesa Ibrahim Lipumba ameungana na wenyeviti wa vyama vingine vya siasa vya upinzani kupinga Bajeti ya Serikali ya 2012/2013, akisisitiza kuwa kamwe chama chake na wabunge wake, hawataiunga mkono. Lipumba aliiponda Serikali akisema kuwa nchi inahitaji uongozi wenye uwezo wa kusimamia rasilimali za nchi na matumizi ya fedha za umma. Aliikosoa Serikali akisema imeshindwa kubuni vyanzo vipya vya mapato huku kukiwa na udhaifu mkubwa katika usimamizi wa matumizi ya fedha za umma zinazokusanywa kutoka katika vyanzo vya mapato vilivyopo. Kwa kauli hiyo, Lipumba ameungana na wenyeviti wenzake wa vyama vya upinzani, Freeman Mbowe wa Chadema na James Mbatia wa NCCR-Mageuzi ambao pia waliiponda Bajeti hiyo wakisema haina jipya. Wakizungumza kwa nyakati tofauti baada ya kuwasilishwa kwa Bajeti hiyo Alhamisi usiku, wenyeviti hao walisema hakuna matumaini kwa Watanzania kupitia Bajeti hiyo kwani fedha nyingi zimelundikwa kuwanufaisha wachache huku umma ukiambulia patupu. Kwa upande mwingine, wabunge wa CCM juzi walikutana kwa zaidi ya saa tano katika kikao ambacho waliibua hoja ya kutaka kuchunguzwa kwa Mfuko Mkuu wa Serikali kwa maelezo kwamba kuna dalili za kuwapo ufisadi. Habari kutoka ndani ya kikao hicho kilichoongozwa na Waziri Mkuu, Mizengo Pinda zinasema msingi wa hoja hiyo iliyotolewa na Mbunge wa Simanjiro, Christopher Ole Sendeka na kuungwa mkono na wabunge wengine, ni kutokuwapo kwa uwiano kati ya fedha zilizokusanywa na Mamlaka ya Mapato (TRA) pia kutoka kwa wahisani na zile zilizopelekwa katika wizara na idara za Serikali. Prof Lipumba Akizungumza na waandishi wa habari, Profesa Lipumba akizungumza na waandishi wa habari jana katika ukumbi wa mikutano wa Ofisi za Upinzani Bungeni, alisema CUF ina sababu za msingi kupinga Bajeti hiyo kwa sababu hailengi kumsaidia kabwela kuondokana na umaskini na gharama kubwa za maisha. "Bajeti ya mwaka 2011/12 Serikali ilieleza kwamba inatambua changamoto zinazowakabili wananchi, lakini hadi sasa hali bado ni ngumu. Mfumuko wa bei umefikia asilimia 20, bei ya mafuta bado ipo juu. Mfumuko wa bei ya chakula umefikia asilimia 24 na sasa inasababisha asilimia 50 ya mapato ya Watanzania wengi kutumika kwa chakula," alisema Prof Lipumba. Profesa Lipumba alisema, Serikali imekuwa bingwa wa misamiati katika bajeti na kutangaza mambo mengi, bila kujali vipaumbele ambavyo imeshindwa kuvitekeleza. "Tunasema sekta muhimu kama kilimo, katika jedwali namba 26 katika bajeti, la mgawo wa fedha, bado fedha zilizotengwa kwa kilimo ni kidogo tofauti hata na makubaliano na nchi za SADC ambayo yanapendekeza nchi kutenga walau asilimia 10 ya bajeti yake, ili kuhakikisha kilimo kinaongezwa na kuondoa tatizo la uhaba wa chakula," alisema. Alisema kuna miradi inayotengewa fedha kila wakati wa Bajeti, kama wa kuzalisha Megawati 61 za umeme wa Nyakato, Mwanza na ule wa Kinyerezi, lakini kwa miaka mitano sasa, hakuna kilichokamilika. Matumizi hewa Alisema katika Bajeti ya mwaka 2011/12 Serikali ilipanga kufanya sensa ya watumishi kulipwa mishahara madirishani ili kubaini wafanyakazi hewa, lakini katika Bajeti ya mwaka huu, mpango huo haujaelezwa kabisa, wala hatua iliyofikiwa mwaka uliopita. Alisema tatizo kubwa linaloikabili Serikali ni ombwe la uongozi, hakuna nidhamu ya matumizi ya fedha za umma, viongozi wanajiamulia mambo bila kuulizwa zikiwamo safari za nje na kulipana posho bila kuwa na utaratibu. Profesa Lipumba alisema inashangaza katika hesabu za Bajeti iliyopita, kuna fedha nyingi zimetajwa kukusanywa ndani na nje ya nchi, lakini bado kuna miradi iliyopewa fedha chini ya asilimia 30 ya mahitaji. Alisema kukosekana ubunifu katika Bajeti, kumesababisha Serikali kuanzisha kodi ya wenye magari ambao watataka kuweka majina yao badala ya namba na kwamba makadirio yake ya Sh5 milioni zilizopangwa zitawezesha kupatikana kwa watu 10 tu badala ya kupunguza kodi hiyo ili kupata watu wengi zaidi. "Hapa inaonyesha ni jinsi gani uandaaji wa Bajeti yetu una matatizo. Kama unaweza kupanga kodi ya Sh5 milioni na ukategemea kupata watu 10, kwa nini kodi hiyo isipunguzwe na kupata watu wengi zaidi, sidhani hata hawa wanaoandaa Bajeti kama hii wanaipitia vizuri," alisema Profesa Lipumba. Mfumo wa Bajeti Profesa Lipumba alisema mfumo wa Bajeti ya Tanzania unakabiliwa na matatizo mengi, kwanza, kutoshirikisha wadau kwa muda mwafaka, kukosa mipango ya kupata vyanzo vipya vya kodi na kutopangwa kwa uwiano mzuri wa makusanyo na matumizi na kuandaliwa kwa vipaumbele. Alieleza kuwa inashangaza Serikali, katika Bajeti kueleza mapato ya ndani kuwa taifa linatarajia kukusanya kiasi cha Sh8.7 trilioni lakini hapohapo matumizi ya kawaida yanakuwa Sh10.3 trilioni. "Serikali inahitaji kukusanya fedha za ndani walau ziweze kutumika katika matumizi yote ya kawaida kabla ya kuomba misaada kwa wahisani,"alisema Lipumba. Alisema kwa Serikali kuendelea kutenga fedha kidogo kwa mambo ya maendeleo kiasi cha Sh4.5 trilioni pekee ni tatizo kwani ni asilimia 30 tu ya fedha zote na kulingana na mipango ya Serikali na mahitaji yake inapaswa ifikie walau asilimia 40. Alisema Bajeti hiyo inapishana sana na Mpango wa Serikali wa miaka mitano, Mpango wa Kupunguza Umaskini na Kukuza Uchumi Tanzania (Mkukuta) namba mbili na Malengo ya Milenia. "Serikali inapaswa kuacha kuwa bingwa wa siasa kwa kutangaza mambo mengi bila kuwa na uwezo wa kuyatekeleza. Kama sasa katika taarifa ya hali ya uchumi iliyotolewa bungeni na Waziri wa Nchi Ofisi ya Rais (Uhusiano na Uratibu), Stephen Wassira kuwa Serikali ina mpango wa kuanza kutekeleza mpango wa ujenzi wa Reli ya Arusha- Musoma, Mtwara – Mbamba Bay, wakati reli muhimu kama ya kati bado inawashinda, kila siku inaelezwa utafanyika ukarabati mkubwa," alisema Lupumba. Mbowe na Mbatia Mwenyekiti wa Chadema, Freeman Mbowe alisema, "Hakuna mkakati wa makusudi wa kupunguza matumizi ya Serikali. Ahadi ya Serikali ya kupunguza matumizi kwa kupunguza posho zisizo na tija na matumizi mengine haikutekelezwa." Mbowe ambaye pia ni Kiongozi wa Upinzani Bungeni, alisema ameshangazwa na kutokuwapo nyongeza za mishahara kwa watumishi wa umma, badala yake fedha nyingi kulundikwa katika matumizi ya kawaida ya Serikali. "Mfumo wa kodi kama mlivyosikia ni mbaya kabisa, hakuna kinachoashiria kwamba mkulima wa kawaida atapunguziwa mzigo na badala yake wanaendelea kuwanufaisha wafanyabiashara wa vyakula kwa kuwaruhusu kuagiza nje bila kodi, hiki naweza kusema ni kichekesho," alisema Mbowe na kuongeza: "Hakuna ubunifu kwenye kupanua wigo wa kodi. Tungeweza kusikia katika construction (ujenzi) ambayo inakua haraka na inachukua asilimia 18 ya pato la taifa kwamba tungetoza kodi huko, badala yake ni yaleyale ya siku zote, kodi kwenye sigara, vinywaji na bia." Naye Mwenyekiti wa NCCR- Mageuzi, James Mbatia alisema kwamba, lazima Serikali ijifunze kubadilika, kwani kilichotangazwa kwenye Bajeti yake ni marudio ya miaka yote. "Huwezi kuchukua hela zote ukaulundikia utawala halafu ukawaacha wananchi bila kitu, hicho ndicho tulichokiona leo. Sh10 trilioni ni kwa ajili ya mishahara na watumishi na matumizi ya kawaida, maendeleo ambako ndiko wananchi waliko kumeachwa tena kutegemea fedha za wafadhili," alisema Mbatia ambaye pia ni Mbunge wa kuteuliwa na Rais. Alisema, hata fedha zilizotengwa kwa ajili ya kujenga reli ni kidogo kwani mahitaji ni Sh3 trilioni na Serikali imetenga Sh1 trilioni kwa ajili ya kugharimia sekta nzima ya miundombinu.

 

[nunu]

I wish the budget would have:
<OL>
<LI>Informed us about previous performance of 2011/12 budget,&nbsp;we need to know how the Government performed </LI>
<LI>Targeted economic growth through light and heavy industries which would enhance job creation as well</LI>
<LI>Been more specific and realistic on most of the plans for the agricultural sector which is the mainstay of about 80% of Tz population</LI>
<LI>Explored on other avenues in terms of revenue collection</LI></OL>

 

[BAK]

MPs: Why we're saying No to Mgimwa's Budget

Monday, 18 June 2012 23:16

"It is through this that we passed the five-year development plan last year... but since the 2012/13 Budget which has been tabled does not fulfill the requirements of the plan, the Official Opposition requests the government to withdraw the budget and reframe it to reflect the requirements of the development plan," mr zitto kabwe, shadow finance minister By Peter Nyanje The Citizen Reporter Dodoma. Opposition to the 2012/13 Budget continued yesterday, with MPs demanding that the financial plan that was tabled last week be overhauled as soon as possible. Debate on the budget began yesterday. Objection to the budget started with the chairman of the Parliamentary Committee for Finance and Economy, Mr Andrew Chenge (Bariadi West-CCM), who called for "tremendous changes" in the document. The lawmaker said it was necessary to overhaul the budget not only to make it acceptable but also enable the government to attain its financial and development goals in the forthcoming financial year. Shadow Minister for Finance Zitto Kabwe (Kigoma North-Chadema) was just as blunt. He wanted Dr Mgimwa to withdraw the Budget and go back to the drawing board on the grounds that the measures outlined to implement it do not reflect the requirements of the five-year National Development Plan. Most of the MPs who spoke after the contributions of Mr Chenge and Mr Kabwe also faulted the financial plan, with the consensus being that it should be overhauled. Censure of this year's Budget started the week before its reading in Parliament on June 14, when Finance minister Mgimwa presented it to the Finance and Economic Affairs Parliamentary Committee in Dar es Salaam. Immediately after its presentation last week, this year's Budget drew a barrage of criticism from various quarters of society, including ordinary wananchi and experts, on the grounds that if approved, the financial plan would do very little to address the country's welfare problems and development challenges. The most contentious issue has been the amount of funds allocated for recurrent and development spending, with opposition to the 30 per cent of the Sh15 trillion allocated for the latter. Yesterday, Mr Chenge proposed that the Finance Bill be tabled and passed at the end of the budget session in order to make room for a major overhaul of the government plan. Article 63 (3) (c) of the Constitution, he said, empowers Parliament to discuss and confirm short and long-term plans that the government wants to implement. Said Mr Kabwe: "It is through this that we passed the five-year development plan last year... but since the 2012/13 Budget which has been tabled does not fulfill the requirements of the plan, the Official Opposition requests the government to withdraw the budget and reframe it to reflect the requirements of the development plan." But his request was shot down by the chairperson, Ms Jenister Mhagama (Peramiho-CCM) who allowed the debate to continue. Earlier, Mr Kabwe outlined an alternative Budget setting out how the government could increase local revenue collection, adjust expenditure and ensure that development activities are allocated 35 per cent of the budget. He suggested that the government look at tax exemptions, tax structure, income tax, taxation of mining and mobile phone companies, the forestry and hide and skins sector, management of national debt, improvement of business within East Africa and controlling government expenditure. On the expenditure policy, the shadow minister said the focus should be on creating a conducive environment for the growth of the rural economy by investing in roads, energy, water, irrigation, health and education. He also proposed major rehabilitation of the central railway and its Tanga-Arusha and Mpanda tributaries. Other proposals include increasing the lowest wage to Sh315,000 per month, establishing a pension scheme for those aged more than 60, boosting the capacity of local industries, especially in agro-processing, and reducing government expenditure. Mr Kabwe accused the government of failing to take stock of implementation of the budget, to the extent that it has been repeating similar strategies each year for the same problems even when those strategies had failed. In the last Budget, he noted, the government adopted the system of issuing permits to businessmen to import sugar as a way of controlling the price. It has repeated the same system this year even though the price of sugar rose to more than Sh2,000 per kilo after the permits were issued. Mr Chenge said the government should look at ways of controlling inflation as the best way of reducing the increasing cost of living. "Strategic national economic growth needs high integrity and discipline on public expenditure, revenue collection and investment in human resources," said Mr Chenge when tabling the committee's views on the Budget. Ms Sara Msafiri (Special Seats-CCM) wondered why the government has set aside Sh50 billion for compensation of people whose land would be taken for establishment of export processing zones in Bagamoyo and Kigoma while agriculture development in major valleys has been allocated only Sh67 billion. "For instance, Kilombero valley has been allocated only Sh1 billion and it is for a feasibility study," she added. "The government should tell us when we are going to start serious farming and produce enough food for our people." Mr Hamad Rashid Mohamed (Wawi-CUF) accused the government of neglecting implementation of the five-year development plan and noted that failing to effectively implement plans has been a serious problem for the government. Research on annual budgets, he added, showed that the government was capable of implementing only 62 percent of the budget. Additional Reporting by Sturmius Mtweve

 

[Dingswayo]

Naelewa kwa nini Tundu Lissu alisema kuwa Bunge sasa lipo katika 'another silly session'. Nangojea wanaopinga msimamo huo waje wapinge haya yaliyosemwa na hao walotoa hoja zao hapo juu. Je wabunge wanaoiunga hii bajeti na wengine humu jamvini hamsomi magazeti?

 

[Idimi]

Naelewa kwa nini Tundu Lissu alisema kuwa Bunge sasa lipo katika 'another silly session'. Nangojea wanaopinga msimamo huo waje wapinge haya yaliyosemwa na hao walotoa hoja zao hapo juu. Je wabunge wanaoiunga hii bajeti na wengine humu jamvini hamsomi magazeti?

Sidhani kama mtu mwenye akili zake timamu anaweza kubishana na wataalamu wa uchumi wanaokosoa maduduya bajeti yetu. Haina maana kuwatoza kodi wafanyakazi wa kima cha chini cha 170,000 na kuacha kuwatoza kodi wafanya biashara wenye kipato cha 3m. Ile 'grace period' ya miaka mitano ya kutokulipa kodi kwa wawekezaji iondolewe pia.

 

[MANI]

Sidhani kama mtu mwenye akili zake timamu anaweza kubishana na wataalamu wa uchumi wanaokosoa maduduya bajeti yetu. Haina maana kuwatoza kodi wafanyakazi wa kima cha chini cha 170,000 na kuacha kuwatoza kodi wafanya biashara wenye kipato cha 3m. Ile 'grace period' ya miaka mitano ya kutokulipa kodi kwa wawekezaji iondolewe pia.

Mkuu Tindu amesema wawekezaji hawaguswi na hii serekali wao ni mbali zaidi kwa mkono wa serekali kuwafikia!