ARUSHA, Tanzania, Nov. 7 (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.
Philip Mpango, 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 communities.
Mpango said the total proposed budget is for recurrent expenditure and development projects.
Revenues from internal sources are expected to be 22 trillion shillings, which is equivalent to 68 percent.
Development partners are expected to contribute 3.6 trillion shillings, the minister stated.
The 2018/19 budget projections will be endorsed after performance analysis of the current budget implementation in the first half of 2017/18, he added.
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 power supply.
"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 minister.
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 Tanzanian shillings)
