ARUSHA, Tanzania (Xinhua) --
Tanzania plans to increase spending in its budget
for the fiscal year ending June 2019 from 31.71 trillion
shillings (14.21 billion U.S. dollars) to 32.4 trillion
shillings, a senior official said on Tuesday.
Tanzania’s Minister for Finance and Planning, unveiled the
budget proposal when presenting to the National Assembly the
proposed national development plan and budget preparations for
the next fiscal year.
The major priorities
of the projected budget being the construction of more
industries, creation of a conducive business and investment
environment, and improving the welfare and livelihoods of rural
Mpango said the
total proposed budget is for recurrent expenditure and
internal sources are expected to be 22 trillion shillings, which
is equivalent to 68 percent.
are expected to contribute 3.6 trillion shillings, the minister
The 2018/19 budget
projections will be endorsed after performance analysis of the
current budget implementation in the first half of 2017/18, he
On industries, the
finance minister said priorities will be directed towards
construction and improvement of the Mchuchuma and Liganga coal
mines, Mkulazi sugar project in Morogoro Region, Liquefied
Natural Gas (LNG) plant in Lindi, the establishment of special
economic zones, and the Kurasini industrial park.
He said the
government is also determined to create a conducive environment
for businesses and investment, with infrastructure such as
ports, railways, and roads to be upgraded and more reliable
“We want to ensure
that economic growth is felt by the ordinary people, especially
those living in the rural areas. Improvements will be done on
the provision of quality healthcare, education, water services,
and availability of nutritional food,” said the finance
According to Mpango,
the government’s economic growth target for the period of
between 2018/19 to 2020/2021 is estimated at 7.1 percent in
2018, compared to this year’s 7 percent. In the first half of
2017, the economy grew by 6.8 percent, he said.
Inflation will be
maintained at 5 percent by June 2018, from 5.3 percent in June
2017, he added.
He said the increase
was due to new loans directed to development projects, including
construction of a Standard Gauge Railway, Strategic Cities, and
Dar es Salaam Rapid Transit. (One U.S. dollar equals about 2,232