Take charge of economy, Z’bar govt told

“The government must take concrete steps now to change the direction of the economy by, among other things, introducing a good system of management of resources,” Ms Fatma Mohammed Said, CAG 

By Mwinyi Sadallah,The Citizen Correspondent

IN SUMMARY

• If the government improves management of public funds there is great possibility that donor dependency will be reduced tremendously

Zanzibar. The Revolutionary Government of Zanzibar has been asked to take concrete steps to transform the economy and plug holes through   which unscrupulous civil servants use to squander public funds.

If the government improves management of public funds there is great possibility that donor dependency will be reduced tremendously, the Controller and Auditor General (CAG) has said in her 2012/13 report.

The CAG, Ms Fatma Mohamed Said, said the audit conducted has established serious weaknesses in revenue collection on the part of many government institutions including ministries and departments, denying the government millions of shillings which would have been used to marshal social services.

The CAG said the audit has also established that the weaknesses are widespread and involve local authorities and other entities outside the central government.

“The government must take concrete steps now to change the direction of the economy by, among other things, introducing a good system of management of resources instead of continuing with donor dependency,” says the CAG in her report.

She noted for instance that in 2012/13 financial year, donor budgetary aid in development projects did not reach the intended targets. While the plan was to source Sh39.9 billion, donors made available only Sh22.1 billion, equivalent to 55.5 per cent of the amount earmarked.

She further noted that under the year in review, the government planned to spend some Sh47.9 billion from its coffers to finance development budget but until the year ended in June the government came up with only Sh27.5 billion, equal to 57. 4 per cent of the money which was sanctioned by the House of Representatives.

On the contrary, recurrent expenditure of the government has increased to reach Sh289 billion in 2012/13 from Sh233.8 billion recorded in 2011/12. She noted in the report that as recurrent budget was ballooning, development budget shrank by 19 per cent
.