Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 59,181
- 79,363
I have a problem with this growth rate percentage. Always stagnant never rising or going below. Always stuck at 6.5% for a decade now. I would have put a question. This stunted growth rate, how do you expect to cater for your energy needs? And if you keep sustaining expensive modes of energy production, what goes into the national reserve. And for now agro-based economic trading is simply coming to a close, due to expanded GMO technologies that is taking root in SA and other west african nations.
I did not follow proceedings because I was busy but give me the percentage allocation for energy and we calculate now that we know that only a paltry 30% will go to developments like infrustructure and others.
actually it was around 8% before globally recession and this year will grow at 6.8! BTW ur budget allocation for development expenditure (energy, ICT and roads) is at 24%!
Tanzania: Emphasis On Energy
By Leonard Mwanga, 19 June 2012
Dodoma Finance and Economic Affairs Minister Dr William Mgimwa has unveiled the 2012/2013 national budget estimates that targets an economic growth of 6.8%, detailing swift measures to ease the economic hardships that afflict the people.
Mgimwa said the Tsh 15 trillion ($9.48 billion) budget seeks to tame rising inflation, food insecurity and unemployment, with specific emphasis on power generation, infrastructure development, strengthened revenue collections and tight control on public expenditure.
In order to develop the agriculture sector the government plans to partner with the private sector to invest heavily in rice and sugarcane farming in the country's major valleys include Wami, Ruvu, Kilombero and Malagarasi, as strategic measures to curb food shortages.
"The government plans to guarantee food security through increased production of food crops," Dr Mgimwa said of the single digit inflation targeting budget, hinting that the government will adhere to the pillars of multib Kilimo Kwanza initiative.
The agriculture, fisheries and livestock sector has been allocated Tsh262 b ($166 m) in the budget. Mgimwa said that reliable availability of electricity was among the top priorities of the budget, with about Tsh500 b ($313 m) allocated to power generation, transmission and distribution.
Construction of the gas pipeline from Mtwara to Dar es Salaam will be accomplished using a $1.23 b (Tsh 2 t) loan from the Exim Bank of China.
The budget has transport on its top priorities, with Tsh 1.4 t ($875 m) allocated to strengthen the central railway line by renovating the train engines and wagons. The allocation will also target priority roads with the potential of opening up economic activities.
Establishment of an Agriculture Bank and increased capital in the Tanzania Investment Bank, Tanzania Women Bank, Tanzania Postal Bank and Twiga Bancorp are the strategies that envisage availing the youth with credit facilities.
The government also expects to create jobs through construction and upgrading of roads, electricity, agriculture and communication infrastructure networks while the private sector was encouraged to use the private sector development window at the African Development Bank to create more jobs.
During the 2012/2013 fiscal year, the government plans to employ 71,756 Tanzanians in education, health, agriculture and other sectors. The budget, whose consumption expenditure accounts for over 70%, leaving only Tsh 4.5 t ($2.85 b) for development, is 30% dependent on foreign funding.
Local sources of funding that include tax revenues, non-tax revenues, local government authorities collections and domestic borrowing will generate Tsh 10.7 T ($6.69 b) out of the expected total revenues of Tsh 15t ($9.48 b) .
Meanwhile, the government has set aside Tsh128b ($80m) in the 2012/2013 national budget to promote industrial production of goods from locally produced raw materials and improve business environment to stimulate economic growth.
The budget allocation targets industries that add value to minerals, large cement factories and electronics as well as information and communication technology.
The minister said the government will strengthen financial services, the credit and cooperative societies, village community banks and community banks, in particular, to avail people with access to credits for businesses and productive activities.
The budget estimates through which the government seeks to increase credit to the private sector to 20% of gross domestic product by June 2013, show a Tsh2.6 b ($1.63 m) allocation to boost the capital of Tanzania Women's Bank, Economic Empowerment Fund and Small Enterprises Loan Facility.
allAfrica.com: Tanzania: Emphasis On Energy