The Ministry of Finance and Planning yesterday unveiled a 12,96tri/- budget for 2021/22 fiscal year highlighting 13 priorities aimed at stimulating the country's economic growth.
Tabling the budget in the House, Finance and Planning Minister Dr. Mwigulu Nchemba said the priorities include serving debts, plugging Government revenue leaks and stimulating economic growth.
He said the Ministry is looking to table a new bill for the establishment of a legislation that would effectively control the persistent leakage of revenues.
The Finance and Planning Ministry will, thus, conduct research on the Government's revenue and expenditure systems to identify challenges and come up with solutions for better management of public funds.
Dr. Nchemba added that in the next financial year, the Government through his Ministry will also focus on creating new sources of revenues and that studies will be conducted on financial models to identify investment opportunities and sources of incomes.
He added that in ensuring proper management and control of revenues, the Ministry has continued to adhere to principles and regulation as well as emphasizing on audit and evaluation of budgetary plans.
According to Dr. Nchemba, as of April, this year, a total of 24,74tri/- had been issued to fund the current budget plan, with 7,32tri/- bankrolling development projects across the country.
Dr. Nchemba said in the current financial year, the Government has disbursed 6,84tri/- to service the national debt.
The Minister listed other projects that will be carried out during the next financial year as the 2022 National Population Census, national debt analysis and coordination of strategies for acquiring soft loans to finance the national budget.
"The Government will also develop a banking sector policy that will help smooth operations among financial institutions," the Minister told the August House.
Dr. Nchemba underlined the Government's quest to improve the Public-Private Partnership, noting that it will establish in the coming fiscal year a PPP policy implementation strategy.
The move echoes the Government's recognition of the vital role of the private sector in bringing about socio-economic development through investments.
The concept of PPP entails an arrangement between the public and private sector entities whereby the private entity renovates, constructs, operates, maintains, and/or manages a facility in whole or in part, in accordance with specified output specifications.
The PPP frameworks have been identified as viable means to effectively address constraints of financing, management and maintenance of public goods and services.
Through the PPPs, the Government can fulfill its responsibilities in efficient delivery of socio-economic goods and services by ensuring efficiency, effectiveness, accountability, quality and outreach of services.
Dr. Nchemba said the Government will in the next financial year carry an evaluation of the country's guidelines on development projects.
The Minister said the Government has conducted verification of debt payments for contractors and compensation to enable the construction of roads and airports.
The Minister said by April, this year a total of 965,1bn/- had been verified and paid to various contractors and service providers.
The Minister said during the 2020/21 budget, development partners promised to provide a total of 2,8tri/- . He said 949,32bn/- was in form of grants and 1,925tri/- was soft loans.
"The Government planned to borrow 3,035tri/- from international financial institutions with business conditions, however, it managed to get 1,683tri/- to fund development projects," he said.
He said the Government managed to strengthen its Revenue Administration systems and that the improvement has enabled it to collect 16,95tri/- equivalent to 86 percent of the targeted 19,72tri/-.
He said local Governments' revenues have reached 607,41bn/-, which is 88,5 percent of the targeted 686bn/-.