Dar es Salaam — The government plans to borrow Sh8.90 trillion non concessional loans from domestic and external sources in the next fiscal year.
Minister of Finance and Planning, Dr Philip Mpango, revealed yesterday when tabling the 2018/19 budget, which was themed "to build an industrial economy that will stimulate employment and sustainable social welfare".
"In order to speed up implantation of infrastructure projects we will borrow Sh3.11 trillion from external sources," he said. Mr Mpango further noted that in the current financial budget the government also planned to spend Sh32.48 trillion. Out of the amount, Sh20.47 trillion would go to recurrent expenditure including Sh7.41 trillion for wages and salaries and Sh10.00 trillion for servicing the country's debt. (Hellen Nachilongo)
, contributions to Pension Funds and other services.
In addition, he said development expenditure is estimated at Sh12.01 trillion, equivalent to 37 percent of the total budget whereas Sh9.88 trillion is locally financed and Sh2.13 trillion is foreign financed.
According to him, funds allocated to development expenditure is consistency with five year Development Plan (2016/17 - 2020/21) of allocating development expenditure in the range of 30 to 40 percent of the total budget.
He noted that industrial economic reforms will be built through inclusive economic participation, partnership and collective efforts. In order to achieve the intended goals, bold decisions must be undertaken in allocating the available scarce resources to strategic areas.
Mr Mpango therefore urged the Members of Parliament and citizens at large to combine efforts and talents of our people and our businesses in order to achieve our aspirations goals. In light of this, we need patriotism and high level of integrity, while aiming at eradicating poverty, job creation and inclusive economic growth.