TANZANIA FAULTED IN AGRICULTURE BUDGET ALLOCATION

Peasants manually ploughing a field in rural Tanzania: only 42% of agricultural budged was allocated in 2018/19

By Osoro Nyawangah, Dodoma TANZANIA

Tanzania Members of Parliament faulted the government for poor agriculture budget allocation whereby in the 2018/2019 budget, a total of 98 billion shillings (US$ 42.51million) was allocated for the sector but only 41.2 billion shillings (US$ 17.87 million) was disbursed equivalent to 42%.

According to the 2019/2020 budget report, the agricultural sector was projected to contribute 28.7% to the GDP; the sector employed 65.5% of the population as by 2017 report.

The government is expecting to spend 34.3trn/- in the 2020/2021 financial year, up from the current 33trn/- with priorities being improvement of business environment, climate change and creation of an industrialized economy.

Representing the Shadow Finance Minister, David Silinde (Member of Parliament for Momba - Chadema) yesterday urged more investment in the livestock sector since it engages more than 50 percent of the population and contributes between 7.4 and 10 percent in the national income.

The opposition member cautioned on re-allocation of budgeted funds to other projects, saying it affects implementation of the Five-Year national development plan.

He said that there is a need for specific legislation for budget oversight and implementation of the development plan as its absence contributed to failure of the First Five-Year National Development Plan, 2011/12 – 2015/16.

Finance and Planning Minister, Philip Mpango

Other member from Serengeti constituency, Chacha Rioba, said almost half of the country’s population depends on agriculture, so there should be strategies to invest more in the sector especially in regions where our main cash crops are produced.

The government should prioritize the construction of ginneries and textile factories to boost cotton production in the 17 regions that cultivate the crop, the legislator emphasized.

Earlier, the Finance and Planning Minister, Philip Mpango, told the house that recurrent expenditure will be increased by 4.7 percent to 21.6trn/-, equivalent to 13.7 percent of the Gross Domestic Product (GDP) while development expenditure will account for eight percent of the total national income,  at 12.6trn/-.

The minister said that efforts will also be directed to ensuring successful implementation of the Second Five-Year National Development Plan (2016/17 – 2020/21).

Mpango was tabling in the National Assembly estimates of the national budget for the 2020/2021 fiscal year and implementation report of the national development plan for the first quarter of 2019/2020 financial year.

The minister noted that in the 2020/2021 fiscal year, internal revenues are expected to increase to 23.4trn/-.  Tax revenues are expected to rise by 4.3 percent to 19.7trn/- from 18.9trn/- this financial year. Non-tax revenues are projected at 3.6trn/- and expected to increase to 4.3trn/- by 2022/23.

He said the government is expecting to receive 154.2bn/- from development partners through general budget support, with basket funds totaling 172.9bn/- and another 941.5bn/- in project funds.

“Our 2020/2021 budget will focus on creating an enabling investment and business environment to attract both local and foreign investors. We will put in place a good environment for implementation of projects through public-private partnership in areas of priority”, he told the parliament.

The minister highlighted some challenges affecting implementing budgets as reluctance by traders to use Electronic Fiscal Devices, tax evasion and failure by development partners to remit funds as per their pledges. 

The country has in the past implemented a number of initiatives in an effort to unlock its agricultural potential.

These include: “Ukulima wa Kisasa; Vijiji vya Ujamaa; Siasa ni Kilimo; Chakula ni Uhai; Kilimo cha Kufa na Kupona and Kilimo Kwanza”.

Tanzania has also been implementing various economic reforms for over 40 years which had started as part of its Structural Adjustment Program. 

Notable achievements were realized, but the country has not attained the anticipated modernized and highly productive agriculture due to inappropriate budget allocation. - Africa