Tanzania govt projects higher spending, high growth Fri Mar 18, 2011 12:01pm GMT DAR ES SALAAM (Reuters) - Tanzania is targeting strong economic growth over the next five years and aims to balance its budget as well as raise government spending in the coming fiscal year, its finance minister said on Friday. Spending is projected to rise by 7.85 percent to 11.97 trillion shillings in the year to June 2012, Mustafa Mkulo told lawmakers. The east African economy is looking to post annual growth rates of 6.8-10 percent over the next five years, in an environment of single-digit inflation, he added. Tanzania grew by 7.0 percent in 2010. "Initial projections for 2011/12 are that the government will collect 11.97 trillion shillings," Mkulo said late on Thursday. Mkulo said that among other sources, 6.39 trillion shillings will come from domestic revenues, 710.7 billion shillings from direct budget support from donors and 1.97 trillion shillings in loans and aid from donors. Mkulo said the government will spend 7.37 trillion shillings on recurrent expenditure and 4.59 trillion shillings on development projects. The estimates were preliminary, Mkulo said, adding that spending priorities for the next fiscal year included infrastructure, agriculture and energy. The government is in talks with Standard Bank, HSBC, Credit Suisse and other financial institutions over a $525 million loan to finance development projects, the minister said.