AS the budget session is scheduled to begin next month instead of June, the first half of the fiscal year 2012/13 has witnessed government budget recording an overall deficit of 943.7bn/-, which was financed by net foreign loans of 439bn/- and a net domestic borrowing of 504.7bn/-.

The deficit was against the budgeted amount for the first half of this fiscal year. The full year budget was 13.5tr/-. The deficit arose following the government's shortfall in collection of revenues from taxes on import, local goods and services and non-taxes revenues against projected amount.

It only managed to surpass the projection on income taxes, other taxes and mobilize grants. The changes in the period of tabling the budget are expected to spur development and increase efficiency in social services delivery as it will allow timely allocation of cash to ministries and district authorities, experts have said.

According to the Central Bank monthly economic review for February this year shows that domestic revenue collected by the central government was 4.12tri/- or 94.5 per cent of the target while tax revenue accounted for 92.0 per cent of total domestic revenue.

During the month under review, total expenditure amounted to 1.27tri/-, out of which recurrent expenditure was 608.1bn/- billion and development expenditure was 599.3bn/-. Domestic revenue amounted to 4.23tri/-, exceeding the recurrent expenditures of 4.02tri/- .

Similarly, grants received during this period amounted to 1.14tri/- , compared to the projected amount of 1.08tri/-. The total expenditure amounted to 6.02tri/-, which is 87.7 per cent of the estimates. The recurrent expenditure was 4.03tri or 87.2 per cent of the estimate, while development expenditure was 2tri/- or 88.6 per cent of the estimates for the period.

Likewise, domestic revenue and grants amounted to 1.25tri/-, revenue collected by the central government was 899.4bn/-and was in line with the target. Tax revenue amounted to 864.9bn/-, 4.4 per cent higher than the target.

Meanwhile, the Zanzibar government budget operations on cheques issued basis, registered a deficit of 3.2bn/- after grants, which increased to 6.7bn/- after adjustment to cash.

The deficit was exclusively financed by foreign sources. Total resources amounted to 33bn/-, out of which 24.9bn/- were from domestic sources and the balance was grants. Total expenditure amounted to 36.2bn/-.

Revenue was 24.9bn/- compared to the target of 26.1bn/- in January 2013. Tax revenue was 23bn/-, accounting for 92.4 per cent of the total revenue collection while non - tax revenue was 1.9bn/-, and was above the target by 28.8 per cent.