BabuK
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- Jul 30, 2008
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Bank of Tanzania (BoT)
Commercial banks hold 46.3 percent of government domestic debt, which is the largest of all holders, the Bank of Tanzania (BoT) has said in its Monthly Economic Review for December last year.
The review said other holders are the Central Bank (24.3 percent), pension funds (16.2percent), Insurance (6.9 percent), others (4.9 percent) and non bank financial institutions 1.4 percent.
The holdings by BoT are mainly in the form of long term bonds and stocks.
During the month under review, the government borrowed 147.8bn/- from domestic sources, of which 75.8bn/- were Treasury bills and 72.0bn/- Treasury bonds, the review said.
Total domestic debt issued during the year ending November 2013 amounted to 2,531.6bn/- , of which 1,562.6bn/- were Treasury bills and 968.9bn/- Treasury bonds.
The amount that fell due for payment in November 2013 was 261.7bn/- , out of which the principal amounting to 72.7bn/- was rolled over, and interest amounting to 53bn/- and principal amounting to 135.7bn/- were paid out of government resources.
Meanwhile, the cumulative debt service during the year ending November was 2,423bn/- , of which the principal amounting to 1,317.4bn/- was rolled over, while principal and interest amounting to 297.8bn/- and 593.9bn/- respectively were paid out of government resources
The stock of domestic debt at the end of November decreased by 49bn/- to 5,968.2bn- compared to 6,017.2bn/- recorded at the end of the preceding month.
The decline was on account of large maturing obligations compared to new issuance.
However, on annual basis the stock of domestic debt increased by 597.8bn/- when compared to the level recorded at the end of November last year.
In the meantime, the review said the value of shilling recorded slight appreciation against the US dollar in October last year.
Under the review, the shilling traded at an average of 1,612.60/- per USD from 1,611.30/- recorded in October 2013.
However, on annual basis, the Shilling depreciated by 2.0 percent from an average rate of 1,580.50/- per USD recorded in November 2012 in the first four months of 2013/14.
The BoT review further said Government budgetary operations recorded an overall deficit of 846.9bn/- , which financed by both domestic and foreign borrowing.
Central Government revenue (excluding Local Government Authorities own sources) was 2,964.9bn/- or 83.5 percent of the target for the period with tax revenue accounting for 94.7 percent of total revenue.
Grants received amounted to 703.7bn/- against with 1,054.7bn/- projected for the period. Total expenditure amounted to 3,938.9bn/- , of which 71.9 percent was recurrent expenditure and the balance was development expenditure.
During October 2013, domestic revenue (excluding Local Government Authorities own sources) amounted to 761.5bn/- or 89.3 percent of the target for the month with 95.0percent being tax revenue. Grants disbursed were 110.1bn/- against the projection of 134.4bn/-.
The observed under performance in domestic revenue collection is partly explained by delays in the implementation of some revenue collection measures.
SOURCE: THE GUARDIAN
