IMF cautions govt over spending, Pinda reacts

[shabani]

IMF cautions govt over spending, Pinda reacts

Premier Mizengo Pinda speaks to city-based journalists soon after landing at the Julius Nyerere International Airport in Dar es Salaam yesterday. PHOTO | EDWIN MJWAHUZI

IN SUMMARY

• The Bretton Woods body says the government, faced with tax shortfalls and aid freeze by donors, has resorted to heavy borrowing through the central bank and this may impact negatively on the market.
• The mission said the upcoming mid-year Budget review with the state would be used to align expenditure allocations with available resources

Dar es Salaam. The International Monetary Fund (IMF) has raised the alarm over the inability of the government to control its appetite for spending above its means, warning that the trend could distabilise Tanzania's monetary policy.

An IMF mission report released on Tuesday noted that the government, faced with tax shortfalls and aid freeze by donors, has resorted to heavy borrowing through the central bank and this may impact negatively on the market.

According to IMF, the government needs to urgently re-align its spending priorities with what it can afford.

"Front-loading of domestically-financed capital expenditure in July and August was facilitated by the Bank of Tanzania (BoT) through conversion of liquidity paper into financing paper but this complicated monetary policy implementation," it said.

The mission said the upcoming mid-year Budget review with the state would be used to align expenditure allocations with available resources.

"The expected implementation of VAT reforms in early 2015 should help bolster the revenue base," IMF noted in the brief that usually follows meetings with top government leaders.

The warning yesterday coincided with a stinging attack on the donor community by Prime Minister Mizengo Pinda who stopped short of accusing development partners of patronising the state.

Mr Pinda expressed the government's frustrations over donors who have withheld nearly Sh1 trillion in budget support for the current financial year, saying the only solution to evade embarrassment was to "completely avoid budget dependence."

He was speaking to journalists at the Julius Nyerere International Airport soon after arriving from an official visit to the UK, Poland and Oman.

The PM was responding to a question on what measures the government was taking to stabilise its budget amid piling debts threatening public service delivery in critical areas such as health, infrastructure, elections and the referendum for the new Katiba.

The Budget has taken a knock after donors withheld their support pending the Controller and Audit General's (CAG) investigation report on the Sh201 billion IPTL sale scandal.

He said: "The only and permanent solution is to be independent by 100 per cent; we must strive to finance our general budget by using our own money from local

sources: The Citizen

Bado watakuja na ngonjera zao.

 

[masopakyindi]

Pengine Mh Pinda angekumbushwa kuwa pamoja na dhamira ya kujitegemea, the hallmark of economic independence and self determination that supports a self sustaining economy, wizi wa aina yoyote haukubaliki.
And thats the issue.
Kujivuta vuta maneno baada ya IPTL hakusaidii sana.

 

[Fx Trader]

Instead of complaining get yout act together. Fire your MoF and Mr. Beno who have failed to control the depreciation of the shilling and increased out cost of living.

You can't blame donors for not submitting the report on time.

 

[Ben Saanane]

He must be out of his minds.Attacking donors will not recue the country from this misery at this material time

Ripoti ya IPTL itolewe Hadharani

Ni Ujinga kwa PM kufikiria Donors kuwa ndio wachawi

Nawapongeza sana wahisani kwa kuchukua hatua ya kulinda fedha za walipa kodi wao

 

[Ben Saanane]

Instead of complaining get yout act together. Fire your MoF and Mr. Beno who have failed to control the depreciation of the shilling and increased out cost of living.

You can't blame donors for not submitting the report on time.

Hillarious indeed...!

Tumeamua kuchagua kuwa wapuuzi wa kudumu kabisa kabisa.

 

[Fx Trader]

You dont deserve to be our president. If you really care about your people than punish the people who have caused the havoc instead of blaming the donors. If you think the market has been speculating based on lack of donor funding and not economic fundamentals than ask the Bank of Tanzania to use its tools(if you have any reserves in reality).

In 2011 you arbitrary banned food exports without understanding the implications and than latet came to apologise. What does that say about your ability to lead the country.

 

[Mto]

They borrow 40% of the budget, they steal 60% of the government revenue!

 

[Fx Trader]

Their silence says it all. No statement nothing. What immediate steps are they taking? Borrowings? The poor wananchi will not feel the full impact of the 20 to 30% fall in fuel prices because of poor leadership.

 

[RockSpider]

CCM wameshindwa ktk kila nyanja ya uzalishaji na uendeshaji! PINDA hajui analolifanya na wala hana blue print ya Tanzanania yenye neema.... no wonder anawatuhumu wahisani ambao yeye binafsi alichangia sana kuwapa misamaha ya kodi ambayo ni sawa na kiasi cha misaada wanachotoa!!! Ili tuendelee kama Taifa tunaka kiongozi mtekelezaji kama Lowassa!!! ... Wengi wanajaribu kumchafua kwa kila njia lakiini hawajiulizi 400 billion zilizokombwa via IPTL beneficiary ni akina nani kama siyo watu wale wale waliomtengenezea zengwe ili ajiuzulu....

 

[nngu007]

Kwanini sasa Mizengo ana react? kaonjeshwa Ulaji - Anaona Uzuri wa kuchota DOLLARS; alikuwa anasafiri Ndani ya Nchi yeye na Mkewe kufungua Makanisa, kutembelea Mashamba - Sasa hii trip ya UK, POLAND, SCOTLAND, OMAN -- Connected kwa Waziri Mkuu zimemlewesha... Ndio pekee alikuwa haendi Nje ya nchi!!!

Matumizi mabaya ya pesa, UBAYA hata kipofu ataona... Wanafanya pale WASHINGTON D.C na Sherehe za VIJIMAMBO Mawaziri Mbalimbali wanaalikwa, kwa Macho ya sisi na wengine twadhani VIJIMAMBO ndio inayowaalika... LA HASHA - VIJIMAMBO kwenye MITANDAO ni NON-PROFIT ORGANIZATION kwahiyo kwa kifupi haitakuwa na pesa za kualika Wanamuziki, Mawaziri au Vipodozi... La Sivyo wangetozwa fine kubwa...

Ndio Maana trip ya Mwisho yaani ya Mwisho waliokolewa na Mheshimiwa Waziri wa Utalii kwa KUGHARAMIA Function yooote hapo D.C na IMF & WORLD BANK nearby watching...

Sasa Angalia Diamond anakwenda, Mgeni Rasmi kabadilishwa toka Waziri wa Zanzibar hadi Balozi Mulamula - what a chocking blast...


c.c shabani