Dar es Salaam — Member of Parliament for Mtama Constituency, Nape Nauye has warned of the growing in national debt that has reached Sh78 trillion, proposing an audit in the debt's account.
Nape said this in parliament on Monday November 8 while debating on the proposals for the national development plan for the year 2022/2023, where the national budget is expected to be Sh39 trillion.
Some of the priorities in the national plan are to stimulate a competitive and participatory economy, a community that is competitive regionally and internationally, economic stability, business and investment environment, enhancing research and technology transfer from abroad.
His proposals were targeting the money borrowed by the previous government, saying the public should be given explanations on how much was borrowed.
"There should be transparency on where the money was borrowed, how it was used, its value and the projects we were told are being implemented using the cash."
Nape said they should follow President Samia's example on how Sh1.3 trillion loan from the International Monetary Fund (IMF), will be spent.
"The sixth phase government has set good example on how it will closely monitor and supervise expenditure of the funds and each citizen will be aware on how the loan will be used to implement various projects."
"My point here is the growth rate of this debt despite the fact that we are told the debt is still sustainable."
"The day we will start saying the debt is not sustainable anymore it will be rather too late becoming a huge burden and it will be a problem for our country's economy," he said.
Minister of Finance and Planning, Dr. Mwigulu Nchemba, on June 10, this year told the parliament that national debt has reached Sh60.9 trillion as of April 2021.
He was presenting to parliament the report of the state of the national economy for the financial the year 2020 and the national development plan for the financial year 2021/2022.
Dr Nchemba, said that out of these, the external debt stood at Sh43.7 trillion and the domestic debt was at Sh 17.3 trillion, which mainly was due to the receipt of loan funds to finance development projects.
However, according to the Bank of Tanzania's (BoT) July economic review revealed national debt has increased by $3.9 billion in one year as the government is implementing infrastructure projects and improve provision of social services.
BoT revealed hat, debt stood at $33. 7 bill at the end of July this year, having increased by $3.9 billion from July 2020.
External debt, comprising the public and private sector, amounted to $25.96 billion at the end of July 2021 and accounted for 77 percent of the national debt.
On the other hand, the government domestic debt amounted to Sh17.8 trillion at the end of July 2021, a decrease of Sh1.12 trillion from June 2021 and an increase of Sh2.7 trillion from the corresponding period in 2020.
Longer-term instruments, which are Treasury bonds and stocks, sustained dominance in the composition of domestic debt, accounting for 84.7 percent of the stock.
External debt service payments amounted to $25.2 million, of which $21 million was principal, the central bank said.