Tanzanian gov't unveils 14.7 bln USD budget for 2016/17

Tanzanian government said on Wednesday it plans to spend 14.7 billion U.S. dollars budget for 2016/17.

Philip Mpango, Minister for Finance and Planning, said the budget was based on cost-cutting measures, scrapped abused tax exemptions and increased taxes on sugar and cement imports and beverages.

Unveiling the budget in the National Assembly in the country's political capital Dodoma, Mpango said the government planned to borrow 1 billion dollars from foreign commercial sources to finance infrastructure projects, including the construction of the standard gauge railway line in the central corridor.

He told the parliament that 8.9 billion dollars will be acquired from domestic sources while 1.8 billion dollars will be sourced from foreign aid and development grants.

Mpango added that 2.7 billion US dollars will be sourced from domestic loans and Treasury papers, and the rest 332.5 million dollars will come from local governments' sources.

To boost industrialization, the minister said the government has increased import taxes on various manufactured goods while removing those for key raw materials.

He said the budget has taken into account President John Magufuli's austerity measures, including cutting wasteful spending.

Mpango said the measures included restriction on board meetings, workshops and seminars, foreign travels, unnecessary publications, national festivals, and commemorations and banquets. Enditem