Zanzibar records an overall deficit of 5.4bn/- in its budgetary operations, says BoT

BY FELIX ANDREW

2nd December 2014.

The  budgetary operations of the revolutionary government  of Zanzibar  has recorded an overall deficit  of 5.4bn/- in September this year which was financed by external sources, the  Bank of Tanzania (BoT) has said in its October economic review.

According to review, the total resources amounted to 34.6bn/- , out of which 91.9 percent was domestic revenue and the balance was grants.

Total expenditure during the month was 41.2bn/- , revenue collection was 31.8bn/-, below the target by 3.7 percent for the month. Tax revenue amounted to 29.8bn/- and was 3.6 percent below the target.
In terms of contribution to total revenue, VAT and excise duties on local goods accounted for the largest share, followed by tax on imports. During the month under review, total expenditure by the Government was 41.2bn/-

Recurrent expenditure amounted to 30 .8bn/-, and was 4.9 percent below the estimate.

The review said development expenditure was 10.4bn/- , out of which foreign funding accounted for 52.9 percent.

During the year ending September 2014, current account balance recorded a deficit of USD 24.2m compared to a surplus of USD 22.0m in the corresponding period in 2013. The outturn was on account of increase in import of goods and services, coupled with decline in current transfer inflows.

It further said the value of export of goods and services amounted to USD 260.9 million in the year ending September 2014 compared with USD 178.8 million recorded in the corresponding period in 2013.

Export value of goods was USD 94.5 million compared with USD 37.5 million recorded in the corresponding period in 2013.

Cloves exports amounted to USD 63.6 million compared to USD 21.1 million on account of increase in both export price and volume.

The volume of cloves increased to 5,600 tonnes from 2,100 tonnes recorded in the year ending August 2013, while price rose to USD 11,292.7 per tonne from USD 10,104.6 per tonne.

During the year ending September 2014, the value of import of goods and services increased by 68.3 percent to USD 330.5 million from the level recorded in the corresponding period in 2013.

Goods imports increased to USD 296.7 million from USD 171.4 million recorded in the year ending September 2013, with much of the increase recorded in capital and consumer goods.

The review said annual headline inflation was 6.0 percent in September 2014 compared with 5.9 percent recorded in Augut2014.The outturn was mainly driven by increase in prices of food, charcoal and cement.

On month-to-month, headline inflation rate remained at negative 0.1 percent, as was in  August 2014 Annual food inflation increased to 7.1 percent from 6.1 percent in August 2014 following increase in prices of fish and bananas.

Month-to-month food prices declined by 1.7 percent in September 2014 compared with a decrease of 0.5percent in the preceding month.

Annual non- food inflation slowed down to 5.0 percent in September 2014 from 5.8 percent in the preceding month. The mainly driven by decrease in the prices of fuel.

Month-to-month non-food inflation eased during September 2014 mainly due to fall in fuel prices.

Annual inflation excluding food and energy, which is a proxy for core inflation, increased to 7.8 percent in September2014 from 7.4 percent in August 2014, while on month – to –month it declined to negative 1.1 percent.

SOURCE: THE GUARDIAN