The new Finance Minister, William Mgimwa, presented his inaugural budget speech earlier today. The total budget for the year 2012/2013 is estimated to 15.1 Trillion, out of which TSh 10.5 trillion will be for recurrent and TSh 4.5 trillion for development expenditures.
Of the TSh 10.5 trillion recurrent expenditure budget, TSh 2.7 trillion will go to service the national debt, 3.7 trillion to pay salaries to the expanding civil service and TSh 4.01 trillions towards Other Charges (OC).
Of the TSh 4.5 trillion development budget, own sources will account for Tsh 2.2 trillion, external sources will come up with the remaining TSh 2.3 trillion.
The Government is expecting to borrow TSh 2.9 trillion to bridge the income gap.
My take on the budget presentation
- Return of compulsory National Service. This is a good move.
- Protection of local industries that produce juices, wines, spirits and other liquors is commendable.
- Recognition of the budding film and music is commendable. I hope that these measures will enable these artists to benefit from their work.
- There was no mention of “Kilimo Kwanza”. This budget did not prioritise the agriculture sector.
- The budget has disfranchised youths who constitute 70% of the population. The budget lacked clear mechanisms on how to empower youths to self-employ.
- The budget exploited the usual sources of revenue. No efforts were made to expand the tax base.
- The budget is 70% recurrent and 30% development. This means that development will be very slow. Again, the budget is very reliant from external funds.
What is your take?