The state-run National Bureau of Statistics (NBS) said in a
statement on its website that national GDP growth was driven by
information and communication (23 per cent), public administration and
defence (19.7 per cent), finance and insurance (13.6 per cent) and
mining and quarrying (10.6 per cent).
The official figures show that agriculture, which employs more than
half of the population, expanded by just 2.6 per cent last year. Other
sectors of the economy which registered less than impressive growth in
2015 were electricity and gas (0.1 per cent), water supply (1.4 per
cent) and accommodation (1.7 per cent).
Overall, the country’s economy recorded a growth of 7.1 percent in
2015 compared to 7.0 percent in 2014, with a further rise to 7.2 per
cent expected this year, according to NBS. Meanwhile, government budget
spending for the coming 2016/17 fiscal year starting July is likely to
rise by 2.2 percent, official figures show.
The slow growth of the electricity and gas sectors in 2015 were
partly attributed to operational and financial woes facing the state-run
Tanzania Electric Supply Company (TANESCO) due to high production costs
compared to its revenue streams.
TANESCO had by mid last year accumulated arrears payable to its
suppliers amounting to nearly Tshs 700 billion/-, mostly related to
energy purchases. A government task force designed a draft strategy to
address these arrears, including the government settling its own arrears
to TANESCO amounting to Tshs 239.1bn/-.
The strategy also hinged on a new drive by TANESCO to improve its
overall revenue collection efficiency, including the claiming of at
least 50 per cent of outstanding payments from its private customers,
amounting to about Tshs 58bn/-.
At the same time, the government yesterday revealed public finance
figures showing it has already spent 1.824trn/- this month largely on
servicing the national debt and recurrent expenses.
According to the figures, over 800bn/- went to servicing the
national debt while 500bn/- was spent on paying the salaries of civil
servants and financing the government’s new free education policy.
The permanent secretary in the Ministry of Finance and Planning, Dr
Servacius Likwelile, told a news conference in Dar es Salaam that the
government had so far collected over 1trn/- in revenue. The target is to
collect 1.5trn/- by the end of February.
Dr Likwelile said a total of 166.192bn/- had already been released
for development projects earmarked in the current (2015/16) budget.
About 18.77bn/- was paid to fund President John Magufuli’s promise of
free education from primary school to O-Level.
The money covered school meals, capitation grants and school fees, the PS explained.
“All this has been possible because people are now paying taxes.
This is what should make us all understand how important it is for the
public to pay taxes,” Likwelile said.
According to the Treasury PS, the government has also timely paid
salaries to all employees in state-run institutions, central and local
governments amounting to 573.7bn/- for February 2016. This covers
515,162 employees in local and central government, and 41,256 working in
state institutions.
The government has also paid out 842.1bn/- and 81.13bn/- to service
the national debt and pensions funds arrears respectively, Dr Likwelile
said.
SOURCE:
THE GUARDIAN
