Dar es Salaam — The government will spend a total of Sh10.67 trillion on servicing the national debt and other related services during the 2021/22 financial year, it was announced in Parliament yesterday.
Requesting the House to approve a total of Sh12.961 trillion for 2021/22, Finance and Planning minister Mwigulu Nchemba said out of the money, Sh10.67 trillion will be spent on debt servicing and other expenditures.
According to the 2021/22 budget framework and national development plan, the government plans to collect and spend a total of Sh36.23 trillion during the coming financial year, out of which Sh13 trillion will be spent on development projects alone.
It is envisaged that locally-sourced funds will account for Sh10 trillion of the Sh13 trillion development budget.
Thus, the amount to be spent on debt servicing and other services will be equivalent to 82 percent of the total development budget.
According to Dr Nchemba, during the first ten months of the 2020/21 financial year, the Tanzania Revenue Authority (TRA) collected Sh14.54 trillion to partly contribute to the budget.