World Bank urges Tanzania to tackle fiscal deficit

[nngu007]

Tanzania needs urgently to deal with its growing fiscal deficit to boost economic growth, which is expected to reach 7 percent this year, the World Bank said on Thursday.

The Washington-based lender said rising pension and creditor arrears, missed revenue targets and delays in disbursement of aid by donors last year forced the government to borrow significant amounts locally.

"The main vulnerability of Tanzania's macroeconomic management remains its fiscal policy, and it is imperative for the government to rectify this situation," said Jacques Morisset, the World Bank's lead economist for Tanzania.

A group of 12 international donors withheld budget support pledges worth nearly $500 million after a corruption scandal erupted in the energy sector.

Tanzania expects its economy to grow 7.4 percent this year, up from an estimated 7.2 percent in 2014. The World Bank said the economy could grow faster if it expanded in tourism, which employs about 500,000 and is the main source of foreign exchange, accounting for close to 20 percent of exports.

"There is potential for further growth ... and some of the needed reforms are quite urgent as the status quo could be costly for the country," said Philippe Dongier, the World Bank's country director for Tanzania.

Source:reuters

 

[mbikagani]

When speaking about growth rate of Tanzania economy, you mean the written figure which has no effect to normal citizens. The life of many Tanzanian is below poverty line. The problems of clean water,balanced and adequate food as well as poor infrastructures is a normal song which has got no players. Our leaders are still corrupting are bribing the public money with no fear. Let us ask them, why the economic growth is not relates to the normal life of the people?

 

[Rutashubanyuma]

Fiscal indiscipline is here to stay. When you see development votes are being moved to recurrent ones without parliamentary approval you know this country is heading to nowhere.

How comes money earmarked for rural electrification is stolen to fund police vehicles beat the imagination.

Why overtaxing power users to fund police brutality?

 

[Mchafuzi]

Fiscal deficit!!!????I cannot understand why the Government is forced to borrow internally while her institutions spend handsomely on luxurious expenditures!! and still same institutions have set a side huge amount of funds in financial institutions which earns interest to accumulate funds for investing in construction of huge towers as if their core business is construction!Why the government cannot call back these funds instead of borrowing from local financial institutions? why in the first place these institutions were established? to collect revenue and distribute to few employed by them and contribute a small token to the government? If you had the chance of looking at their plan strategically, it means they spend what they collect and in case if they have surplus, the would replan to accomodate the surplus instead of taking the surplus to the government!!What a shame to our government!!I cant understand really, this animal called fiscal deficit.