The minister of Finance, Dr Phillip Mpango, on Tuesday unveiled proposals for the 2019/20 budget plan that, among other things, outlined priority areas that the government wants to embark on in the next financial year as well as the funds that it expects to raise and spend.
Dr Mpango told lawmakers in Dodoma that the government expects to raise and spend Sh33.1 trillion in the 2019/20 fiscal year, which would be an increase of Sh700 billion from the current budget.
Out of the Sh33.1 trillion, about Sh23 trillion would be from domestic revenue sources and the rest -Sh10 trillion- would come from treasury papers, commercial loans and aid.
The proposed budget plan shows that the government is trying not to be overambitious in its expenditure plan despite the need for more spending to meet growing developmental challenges.
As a developing country, Tanzania needs to spend more on building transport, agricultural and industrial infrastructures.
Increased spending is also needed to expand and improve social services to keep pace with the ever growing population.
This clearly calls for the crafting of both medium and long term strategies that would ensure that the government mobilises as much financial resources as possible to meet the country’s development needs.