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Curtain Opens On 2013/14 Budget(AllAfrica Via Acquire Media NewsEdge) FINANCE Minister William Mgimwa will on Thursday unveil fiscal plans to raise 18.2tri/- to be spent during the 2013/2014 financial year in the National Assembly in Dodoma. "It was earlier estimated that the government would spend 17.7tri/- in the next financial year; but after thorough deliberations on budgets of sectoral ministries, more resources were allocated," the minister told the 'Daily News.' The much-awaited budget proposals, to be moved in the House starting from 4pm, are about 18 per cent higher than the amount projected to be spent during the 2012/2013 financial year which ends on June 30. Earlier on Thursday, the Minister of State in the President's Office (Social Relations and Coordination), Mr Stephen Wasira, would present the 2013 economic survey and the government's 2013/2014 development plan. Dr Mgimwa has already announced the government's emphasis on infrastructure projects and upholding of fiscal measures that are pro-growth, anti-inflationary and investorfriendly designed to drive economic growth to seven per cent during 2013. The economy grew 6.9 per cent in 2012 from 6.4 per cent a year before, above the projected 6.8 per cent, buoyed by vibrant communications and transport sectors as well as higher manufacturing output. Still walking a tight rope, the government through the central bank's monetary stance is now paying dividends as the goal to reduce inflation to single digits is at last a dream come true. Prices slowed to 8.3 per cent in the year to May 2013, from 9.4 per cent in April, pushed lower by slowdown in food price rises, said the National Bureau of Statistics (NBS) in its latest report released in Dar es Salaam on Friday, last week. "Some two years ago inflation was over 19 per cent. We have really achieved what we promised," Dr Mgimwa proudly said. Most Tanzanians are eager to hear the minister announcing measures to enhance revenue collection by casting the taxman's net wider and slashing notorious exemptions. A recent report of the Controller and Auditor General (CAG) revealed that tax exemptions has reached 1.8tri/-, a level that negates government's efforts in revenue collection. The minister was upbeat on the 2013/2014 budget saying: "It is going to address concerns of farmers, workers in the public and private sector, as well as manufacturers. "It is will be a smart package. It is going to be pro-poor, pro-growth and yet investor friendly," said the minister looking highly optimistic. He also said that under the present arrangement, where the budget session would be concluded before June 30, disbursements are to start immediately after the new financial year kicks off. He said in the past ministries and other government offices were starved of financial resources during the whole of the first quarter. "Funds started flowing in September. This was a big problem," he said. He said farmers should wait to see fertiliser and other inputs delivered well ahead of the farming season. During the ongoing budget session, several MPs have repeatedly called on the need to increase tax on mobile phone companies, gamming and mining activities. The MPs strongly contended that the telecoms and mining firms mint billions of shillings, but their contributions to government coffers are not congruent to their earnings. A Dodoma resident, Mr Adrian Mazengo, told the 'Daily News' yesterday that he was no longer excited by budgets, claiming that the minister is likely to come with what he described as "the same stuff." "We are going to hear the same story on hiked prices of cigarettes, beer, soda, wines, Konyagi, petrol and diesel. These guys at the Treasury are always in the business of copying and pasting; that's all," he lamented. He added: "You just wait to listen to juicy songs on macroeconomic performance such as GDP going up, inflation easing and external reserves swelling." "A common man in the street wants all that translated into better life with more weight in his or her wallet and more stuff coming out from the kitchen to the dining table," explained the Dodoma-based economics teacher. Moshi Rural MP (CCM) Dr Cyril Chami said telecoms were making a lot of money and the taxman should reap billions of shillings from the lucrative industry. For example, he said, Tigo- Pesa and M-Pesa monthly transactions are around 1.7tri/-, taxation of between two to three per cent of this amount can make a huge difference to he lives of Tanzanians. Dr Chami further said that charging hardly 5/- for every 100/- on airtime and directing it to roads and rural electrification or education can also help a lot in poverty reduction. The former industry and trade minister further said that deep sea fishing was an area that needed extensive exploitation. "We can harvest trillions of shillings from the vast waters in Tanzania's Indian Ocean," he stressed in an interview with the 'Daily News'. Copyright Tanzania Daily News. Distributed by AllAfrica Global Media (allAfrica.com). |