Tanzania: Zanzibar Budget to Prioritise Agriculture, Tourism

Zanzibar — ZANZIBAR'S Finance Minister, Mr Omar Yussuf Mzee has unveiled, in the House of Representatives, a 707.8bn/- budget that prioritises agriculture, tourism, trade, reduced tax exemption and improved tax collection for faster economic growth.

Mzee announced no new levy, but said the government is to review current charges like licences, aimed at boosting revenue collection, and control of expenditure including unnecessary spending on seminars and travels.

Moving a motion for the 2014/2015 budget in the House, Mzee said the proposed budget depicts a 7.5 per cent increase from the 2013/2014 estimates of 658.5bn/-.

"A total of 365.8bn/- is expected to be collected as domestic tax and non-tax revenue in the financial year 2014/15. The government expects to receive a total of 305.4bn/- from external resources from development partners," Mzee in his budget speech.

The live broadcast speech was also witnessed by the Union government Minister for Finance Ms Saada Mkuya, Deputy Governor of Bank of Tanzania (BoT), officials from defence and security, representatives from foreign embassies, NGOS, and private sectors.

Briefing journalists last week, Mzee had mentioned that the 2014/2015 budget was TZS 705.1bn/-. He said Zanzibar has recorded admirable economic growth from 1,342.6bn/- in 2012 to 1,442.8bn/- last year, and individual income from 1,030,000/- to 1,077,000/- annually.

The Minister attributed good economic growth to agriculture and revenue from the tourism industry. Agriculture grew from 2.0 per cent to 3.6 per cent, while tourism contribution rose from 0.2 per cent to 6.5 per cent in 2012 and 2013 respectively.

Mzee said that there was relief in inflation from 9.4 per cent in 2012 down to 5 per cent last year, attributing to import tax decrease on rice, sugar, and wheat flour, the staple foods of Zanzibar.

The minister said that the government is to review various fee rates aiming at boosting collection and improving services delivery and promote use of electronic receipts, and introduce special tax system for small taxpayers and introduce a regulator for accountants and auditors.

Despite promising economic growth, Zanzibar's public debt stock increased to 294.9bn/- "equivalent to 17 per cent increase compared to 252.3bn/- recorded at the end of March 2013. Out the debt 211.8bn/- was external."