False start for Zanzibar's new budget as donors withhold aid

BY BEATRICE PHILEMON

11th November 2015.

The government in Zanzibar managed to raise only 57.7bn/- in the first two months of the current financial year against an expenditure budget of 66.3bn/-, which resulted into a fiscal deficit of 8.6bn/-.

 

Most of the shortfall emanated from development partners’ failure to timely honour the financing pledges for the 2015/16 830.4bn/- budget, which is 42 per cent donor dependent.

 

The most affected funding was financing of development projects whose implementation mainly depends on aid.

 

In August, development expenditure was below target by 18.2 per cent, due to lower fund inflows from development partners. 

 

“Out of the development expenditure, inflows from development partners amounted to 2.9bn/- or 7.9 per cent of projected amount,” the latest review of the national economy reads in part.

 

Figures in the September monthly economic review (MER) show that Zanzibar made revenue collections amounting to 56.6bn/- in July and August most of which emanated from tax revenue.

 

More than half of the collections were made in August. 

 

Tax collections amounted to 51.8bn/- of which 29.6bn/- was collected in August while the Zanzibar Revenue Board collected 22.2bn/- in July.“In August 2015, total resources amounted to 32.8bn/-, out of which 98.2 per cent was domestic revenue and the balance was grants. Meanwhile, total expenditure was 35bn/- leading to an overall deficit after grants of 2.2bn/-,” the September MER reads in part.

 

“Revenue collections amounted to 32.2bn/- or 2.1 per cent below the target for August 2015. Tax revenue amounted to 29.6bn/-, which was 3.0 per cent below target,” it adds.

 

During the month, total government expenditure was 35bn/-, out of which 30.4bn/- or 86.6 per cent was for recurrent expenditure and the balance was for development projects.

 

In July, government expenditure was 31.3bn/-, comprising of recurrent expenditure amounting to 29.1bn/-and the balance was development expenditure. The recurrent expenditure was 1.8 per cent below the estimates while development expenditure was 30.0 per cent above the estimates due to more than projected disbursement of funds. 

 

“Government contribution for development expenditure was TZS 1.6 billion and the balance was funds from development partners,” Bank of Tanzania notes in the August MER.

 

SOURCE: THE GUARDIAN