The budget for the year 2011/2012 has been announced by the Minister responsible for Finance, and Economic Affairs. A package of measures including; holding down unnecessary expenditures and slashed taxes on heavy industrial oil, farm equipment, fishing gear and animal feed to mitig ...Click here to read more

The budget for the year 2011/2012 has been announced by the Minister responsible for Finance, and Economic Affairs. A package of measures including; holding down unnecessary expenditures and slashed taxes on heavy industrial oil, farm equipment, fishing gear and animal feed to mitigate commodity price hikes and supporting agricultural production. In this budget, like in the previous ones, government announced economic policies and legal regulatory measures to stimulate economic development for poverty reduction. Fiscal policies to curb tax evasion and through which government will collect more tax revenues for strengthening social and economic infrastructure were announced.

The 2011 /12 budget identified five priority areas that will receive a chunk of resources from the budget; these are:

1. Electricity
   
2. Water
   
3. Transport and transportation infrastructure
   
4. Agriculture and irrigation and
   
5. Job creation in private and public sector

The budget has also announced measures to mitigate high cost of living among the citizen. The cost of living is highly associated with the increase in prices of goods and services, which result from the increase in fuel prices in the world market; unreliable power generation which affects productivity; and food shortages in the country.

To address the increase of fuel prices, the government has decided to review the computation of the charges imposed on fuel with the aim of reducing the price. Also the government has decided to bank on bulky importation of fuel; the measures that will reduce transportation cost and hence reduce the fuel costs and prices.

Regarding the power shortages the government will assist TANESCO to secure loans from International Financial Institutions for procumbent of 100 MW and 60 MW plants for Dar es Salaam and Mwanza regions respectively. Moreover the government promised to re-examine TANESCO operations and mandate with a view of separating electricity generation, transmission and distribution by engaging private sector operators in the process.

To address the food shortage in the country; the government in the fiscal year 2011/12 intends to purchase food crops to enhance the National Grain Reserve. The reserve will subsidise food prices by distributing grains in affordable prices to the areas with food shortages.

The government has planned to take several measures to revolutionalise agriculture sector as a way to address unemployment problem. These measures include: the development of Southern Agricultural Growth Corridor of Tanzania (SAGCOT), this initiative which is an integral part of “Kilimo Kwanza Vision” which intended to help in reducing poverty among the rural citizens by increasing agricultural productivity and creation of employment. The government intends also to empower smallholder farmers through provision of loans, extension services and improved farm inputs. It is believed that improved productivity could create a mixture of employment opportunities. Agricultural processing industries and implementation of MKURABITA are other measures that will be considered to curb unemployment problem. Having the Government presented its budget, it is important the public provide their opinion, analyses and views on how the budget can be improved in order to achieve the intended objectives. In this context therefore; this forum invites everybody to join the discussion on the following current budget related issues.

• Basing on the 2011/12 budget proposals, do the estimates address issues that touch the lives of many common people? and does the budget proposal meet what most people expected?
  
• The most critical issue that majority of people were complaining of before the 2011/12 budget was tabled was the increased cost of living among the citizen. Does the current budget proposal reflect the commitment of the government to mitigate high costs of living to the citizen?
  
• How different is the current budget from the past ones? Doest the budget proposal feature the priorities in the recently developed 5-Year Development Plans, MKUKUTA, MKUZA and Vision 2025 as we aspire to be the middle income country by 2025?
  
• What need to be done through monetary and fiscal policies, to improve economic growth of the country and poverty reduction?
  
• What are your general opinions regarding the 2011/12 budget proposal in relation to poverty alleviation and well being of the people?

Greetings

To compleet a budget debate is one thing, to implement the budget for planed development activities is another thing. My opinion is for CSOs to watch the public expenditure down to the front line service providers. My organization will be ready to partner with any interested NGO to do Public Expenditure Trucking Survey ( PETS).

Thanking you

Yours truly,

Elisha Sibale Mwamkinga

Executive Director

The Good Samaritan Social Service Tanzania

P.O. Box 65146, Dar es Salaam,

Tanzania

0755 908795

Dear TAKNET members,

The 2011/12 budget session has been concluded after long debates following ministerial budget presentations. We would like to close this topic, but before we do that we would like to hear your conclusion regarding the budget presented on how you think will / will not address short and long term objectives of economic growth and poverty reduction. We believe you have accessed the budget volumes and as Prof Mbelle advised the budget has now been firmed up you should be able to give informed conclusion.

Dear Taknet members,

I have joined this discussion late, so if do restate the obvious my sincere apologies.

The budget has many interesting aspects, but one that I believe was  most commendable was the minister indicating that they would be taking a concessional loan of 127bn/- from the financial markets in Tanzania for infrastructure development.

This is an indication that the finacial markets have growtn commendably that they can provide such assistance to governmet. It also a commitement of these investors staying in this market for a long time,  unlike some of the players in the tourism market leave every 10years.

Jackie

Ofcourse implemenation of these projects and correct use of the funds is most critical.

Jackie
I'm waiting to see wh

Makongo

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Japhet Maingu Makongo

Ubunifu Associates Ltd

P.O. Box 32971

Dar es Salaam,

TANZANIA

Website: www.ubunifu.co.tz

Tel: +255 22 2762027

Mobile +255 754 571 256

As observed by Mbilinyi below, all of us who have knowldge about budget processes and can some how influence decisions should turn our attention at lower levels of governance-village and ward levels to help the leaders and people to understand the implication of these type of budgets. We talk a lot in meetings and conferences, we write a lot, but we hardly interact and connect at the levels where it matters-village/mtaa and wards. I do not know about others, but as for myself I must admit that although I am concerned with development in my area, I have not visited any of my mtaa or ward leaders since the begining of this year! I do not know to what extent they understand the issues about budget implication and what we discuss here.

In our admnistration strucre, we all belong to a mtaa or village. If all of us who know something about planning and budget dedicate at least 10% of our time to inenteract at mtaa levels, I am optimistic that we are likely to spark a strong movement from below, and hopefully make the government responsive. So let us act now to influence the next budget process.

Makongo

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Japhet Maingu Makongo

Ubunifu Associates Ltd

P.O. Box 32971

Dar es Salaam,

TANZANIA

Website: www.ubunifu.co.tz

Tel: +255 22 2762027

Mobile +255 754 571 256

I have been absent for a while, so excuse me if I say something that has been said already.

This is about expanding the tax base and empowering the people to have the right to speak on how their budget money is spent (both at central and local governments). And I will say what some might call heresy .

It is to re-introduce the POLL TAX, that every able-bodied pays; a very small amount for each person say 30,000Ths per annum. When multiplied to total number of adult people, (there are about 10million, already excluding the old beyond 60 years and the disabled ), you get about Tshs 300bn, which is relatively big to augment local council finance coffers substantially.

I am aware that it is politically difficult to introduce the POLL TAX and even more so to enforce payment. But is vital for empowering people as said before, and inculcating in people’ minds the citizen’s core responsibility to pay taxes. What is done now through indirect taxes such as VAT is that the ordinary person is sub-conscious that he pays taxes and even then many basic things are exempted or do not pass through taxable channels . Tax exemptions such as on agricultural inputs and the like would still be important to encourage production from which the poll tax would be payable. The poll tax should also leave out those who pay PAYE or the latter be adjusted downward to reflect the poll tax.

The other alternative way of using poll tax money would be to create mass employment, either through public works for the unskilled labour at the community where labour intensive use is possible and/or to create subsidized initial employment in both public and private institutions for school graduates (who are always asked to produce evidence of prior experience for regular jobs) . The advantages of both are clear: get rid of youth unemployment, which is a lurking time bomb, and to use up excess labour productively to lift up the GDP. This is a simplified concept here but it is workable.

HAYA NDIYO MAAMUZI MAGUMU.

Deo Mutalemwa

leaders: policy makers and implementers and other challenges as Makwasa and many others had pointed out. My concern is what exactly can we do to change the situation after analyzing the root causes of our problems?

In my view, its time now to act, not as "irresponsible" citizen, but as responsible ones who feel the pain and who are affected by the leaders' actions. We need to rethink on how best to impose and effect changes on matters that affect our welbeing. Their need to be a "contract" between our leaders and us, in every plan, they need to know what we expect of them and once they fail to deliver, take them responsible. As we look forward to the new constitution, the people should be given much authority to have to monitor and evaluate the actual implementation of the plans and "vote of no confidence" if not met the target.

We have our "esteemed leaders", its now 50 yrs of independence, yet the country is food insufficient, the country is in the darkness, malaria still wiping out our lives, agriculture still subsistence, and many many chaos. What are our priority problems that this budget should address? Universal Pension ? "Posho"?, "Mafuta"? "Kilimo Kwanza"...

I concur with Makwasa that a lot need to be done in changing our policies (Policy Analysis, M&E) to empower people that they become owners of socio-economical development plans, and holder responsible of the irresponsible leaders.

Mungu Ibariki Tanzania

Jones Kapeleka

Previously we expected employees to pay tax, these days after trade liberalization we dont know for sure the busness community who doesnt pay tax. our economy depend at large on how much we collected from local revenue and from this revenue we can ask the government how much have you spend to development budget.

We need to do a lot of amendments of policy and laws inorder to have real change of economic and social services

its enough for today

good day

This is a good contribution to people and all stakeholders of good governance and economic development. Previously we expected employees to pay tax; these days after trade liberalization we don’t know for sure the business community who doesn’t pay tax. our economy depend at large on how much we collected from local revenue and from this revenue we can ask the government how much have you spend to development budget. We need to do a lot of amendments of policy and laws in order to have real change of economic and social services.

It’s enough for today good day

Dear friends,

 I guess we have a lot of innovative ideas ...perhaps the same or even more than what rwanda has today on 'innovative performance management contracts' Do we remember the Client Charter initiative or the famous OPRAS?..What has become of these tools for assessing and motivating staff and clients  for social service delivery and development practioners?

What we need is total transformation of the mindset of leaders whom we have given mandate to execute budgets. Just see the type of debate going on the parliament this week?  Yes, the problem lies to committment of leader to implement yhe good ideas!

Thanks Mwiru. the Rwandese example you are giving is very interesting and inspires most people in this continent, as one member noted, the major issue is not the budget but our devil is the implementation aspect which in most case lags behind the plans. I wish we had what you called ‘innovative performance management contracts’ in our country. But my question is how do we get there? Let me have a response from members.

One can say that it does not matter how good a budget is the goals will not be reached due to leadership, accountability and implementation problems. We had mentioned these problems in our MKUKUTA discussions in details.

This means both the government side and the opposition one in our Parliament should seriously discuss about accountability, leadership and implementation.

The life of Tanzanians will not be changed and poverty will not be eradicated by Universal Pension. Developments will come when we have managed to fix electricity problem for the whole country and be able to distribute cheap electricity to our villagers and farmers so that they can effectively produce goods.

Dr.Khamis

Sweden

Dear members, let us borrow a leaf from Rwanda on performance

To learn more about Rwanda’s innovative performance management contracts between the President and all 30 district mayors, click here:
http://www.cop-mfdr africa.org/profiles/blogs/rwanda-promoting

Leadership and accountability are crucial ingredients. I know a council where funds from the donor have not been spent this very financial year simply because it seems that council focal people  would not benefit from it due to strong accountabilities attached to it from the donor. If we still have these people denying others to access social services through grants made available, where are we heading?.

For Tanzania I think you can treat budget as stand alone, that not necessarily it will be translated into change in improving  lives as brother Amon has clearly put

I am asking myself, if perhaps MKUKUTAs and other strategies and policies have been too much intervened by DPs in their development and that is why implmentation becomes impossible and may be that is why countries such as south africa have decided to develop their own developmental plans and let DPs to access them through the website when they are already signed off. I have been involved some how in the processes but the government representative sort of just buy in whatever their DPs suggest and sometimes, documents are prepared for them to include in the papers. when it comes to implementation who go back to the document. Who clearly link their Strategic Plans to MKUKUTA??

I think as the country, our leaders have to think of this. we may have really few who undestand these documents and hence their strategic plans do not necssarily link to this bigger picture

Let us think beyond good budget, good mkukuta, let us now think what does it take to implement?.

 Good Leadership, Good Leadership............huge ingredients to development. good leadership should not only be perceived from political point of view. For me i think even technocrats to take lead in development of sound strategies which they will them implement is critical

Wajameni,

Putting policies on a piece of paper is one thing and implementing them is another thing all together. My friend Prof Mbele talked about including universal pension in the Mkukuta, this might be a good step there is an effective leadership, accountability and contro,l else is an increased ulaji to the LGA staff who are going to pay the old men and women in the villages. If the elite staff who were employed by the East Africa Community were not paid their pensions with all evidences showing that their money was available, how about the Old bibi at the village who can’t read or write? Think about how much money is disbursed for development and how much is effectively used for the intended purposes. I am not majungulizing you can ask CAG.

When speed governors were introduced in the Country, I told one of my friends who was at the fore front advocating for them that; the speed governor will not work if they will be fixed in motor vehicles. My proposal was that the speed governors should be fixed in the drivers brains. On those days he didn’t understand what I meant, but today he has realized what I meant.  So my point here is that our problems are not on policies but on the people who are entrusted by the Tanzanians to hold the steering and lead the way. Brother, Prof. Mbele If there is no accountability at all levels we shall fill shelf’s of all libraries in Tanzania with Mikukuta and Mikokota and yet no change will be realized.

Mutaniwia rathi wajameni, haya mambo yanachosha. Mbona Kagame Kaweza? Sisi tuna nini?

Prof. Mbelle, it is true, universal pension has already been adopted in MKUKUTA II special attention on this is needed by all of us otherwise 5 years of MKUKUTA II may end up withouth starting implementing this. We need now Kuchagua kulipa Unversal Pension to our older citizens.Ukiona kunavuka moshi sehemu,ujue kuna moto.Hitaji la Pensheni kwa wazee sasa ni muda wake sahihi, Tanzania ifanye,hatuhitaji kubaki tunasitasita.

Msigwa(CEO-PADI).

Colleagues,

To respond to the impact that should be expected for the Government’s budget 2011/12, we need to look at the government’s implementation capacity. During MKUKUTA review, it was vividly shown that the capacity of the government to effectively and efficiently implement development projects and programmes is very low and it is the key/major constraint for development effectiveness.  The resource allocation may look nice and promising, but the ‘devil’ is in the details i.e. disbursement and implementation is the devil. The national systems of financial resource disbursement are very good the way they are written in books, but its operationalisation / implementation is not that good. Also, on the ground we know what happens with human & financial resources … it is not necessary that those who are competent are the one that will implement the activities … most of activities are implemented or supervised by those who are corrupt and incompetent as long as they have good relationship with their bosses.

For the budget to make a difference, we need more transparency and accountability in its execution and implementation of activities. Do you expect substantial changes is budget transparency and accountability? Can the government do things differently this time 2011/12? I don’t think so … it can’t happen overnight with the current weak leadership at all levels  (leaders who don’t know why we are poor?) …. unless, we also take other measures, which are not necessarily of budget nature to reform our leadership so that they are more accountable to people. RWANDA is good example, may be China is on extreme case … you know what it is.

Amon

Universal pension has already been adopted in MKUKUTA II (Cluster II Improvement of Quality of Life and Social Well-being; Goal 6 - page 81 and page 162). However, the message of Theresia Minja needs to be taken up agitatively. I recall Helpage had organized a workshop and the PM as guest of honour in his keynote address had stated that the Government is committed to implementing universal pension. It is a matter of kupanga ni kuchagua now! Prof. A. Mbelle

Dear TAKNET members

ESRF through support from UNICEF Tanzania is organizing a national discussion workshop on ‘The National Budget 2011/2012 in the context of the General Budget Guideline for the Five Years - Development Plan and Its implication on Gender, Children and Maternal Health Issues in Tanzania.’ The workshop, aims at critically discussing; (i) the budget Speech for 2011/2012, in line with the Budget Guidelines and priorities of the Five Year Development Plan (FYDP 2011 – 2016); and (ii) The budget’s potential impact on Gender and Children issues in the country.

This workshop will provide stakeholders with opportunity to share, discuss and understand the new budget and budget guidelines as well as the implications on very important aspects of Tanzanian society i.e. children and gender.

Being among important stakeholders, ESRF and UNICEF are cordially inviting you to participate in this one-day workshop. The workshop will be held on 22^nd June, 2011 in Dar Es Salaam from 0900 am till 0500 pm. If you would like to attend, please let us know through the following email: taknet@esrf.or.tz

Theresa Minja

Dear all,

I must also congratulate the Minister  together with other officers for putting up all the things together  and make up 2011/12 budget. I am currently working in the ministry, so I understand what does it mean!. Again, Congratulation!

Generally, based on the sector allocation  I find out that the budget has focused to create an enabling environment for better and wider growth interms of improving business environment, better infrastructure to support macro and micro enterprises, Which in think it is quite good.

I understand that It is difficult to make priority that will be accepted by all especially when you have few resources with little time.  However I find very little emphasis has been put to reduce the gap between the poor and the rich especially the short or intermediate term measures. May be when other ministries presented their budget, then we can see, but that is my worry. But I feel that the higher income gap is a serious matter that needs government attention.

Yes the government has tried to widen the tax base, but I think we can do more by reducing tax exemption offered especially to mining and other related companies.   

Akwila has pointed out on real allocation of resources into the MDAs during budget implementation. In my view we have seen a little bit of sector allocation but I feel its not a big problem at all, what I see is timely and real disbursement of the funds, and that is where most of the challenges people are questioning or in doughty especially when it comes to budget execution. I think the government need to find  ‘muarobaini’  wa timely disbursement of funds because it has negatively impact on the development project/programmes.

Thanks

Kabuje

First and fore most I'd like to imtroduce myself as I am new to this platform and this being my first contribition. My name is Jones kapeleka an agricultural extensionist working as a Researcher with Tropical Pesticides Research Institute (TPRI) in Arusha.

Back to the business, this budget had touched some indicators which might influence donors' support to cater for the budget deficit but does not actually address real problems facing the majority of Tanzanians. The issue of agriculture for instance, this budget does not indicate clearly the continuity of the ASDP and the DADPs, Agric & Livestock Policy (1997) KILIMO KWANZA and TDV 2025. the issue of empowering small holder farmers had become the 'National Anthem" to justify the use of these funds. No much effort is given to strengthen research and improve extension services in solving agricultural problem.

This budget need to be traditional assuming that rural life problems and poverty is associated with low productivty, solution being loams and farm inputs, there is much more.

It should adress crosscutting issues such as gender inequalities, distribution of farm wealth among farm families, food storage and post harvest handling, climatic change and most important marketing of agricultural produce. It need to synchroninize and harmonize priorites of ASDP, Agric Policy, KILIMO KWANZA, TDV 2025 and the MKUKUTA II and MKUZA in line with reforms in the Local Governements.

Thank you All.

Mungu Ibariki Tanzania,

Jones

Dear All,

Much as we contribute to this topic we should be concerned if at all the BUDGET is realistic then to think on how it should be implimented to achieve the desired impact for national growth and improvement in many aspects of life and the economy at large. Budget has been read and we dont expect some changes as we wait for its implimentation (experience from the past).

Power rationing is now a normal thing. At first they say its only for 10 days, now they are quite. In the mentioned budget, nothing has been done to aleviate this MAJOR problem - Power shortage(s). Together with ever increasing fuel price geared by the rise in foreign currency forcing Tshs to depriciate day after another causing economic tumult in the pocket of the ordinary Tanzanian. And here comes the Minister of Finance and Economic Affairs reading to the public a budget which to-date, Financial and Economic Experts are yet to figure out how will it improve the economy of our country and raise value for money (VFM) to our currency (TZS) to boost the purchasing power of an ordinary Tanzanian. Hard to figure out the EXPECTED IMPACT. Unless we expect other unforeseen happenings to be caused by high cost of living (the case of Northern Africa). 

Budget is an important tool for our economy and it shows where we are going in the next year to predict the economies of the following year. Therefore, if this budget is not certain, what should we expect in the year after next?

The 2011/12 budget has a total expected revenue of shillings 13,525.9 billion where the Development partners will contribute the amount of shillings 3,923.6 billion (as foreign aid).This is encouraging since it shows that the budget has a small foreign dependency this year. However some of our goals will depend on this foreign aid and can be delayed or not achieved at all.

The budget does not mention at all if there is a reserve fund allocated for emergency. If there will be increases in oil prices by OPEC where is the government going to get that extra money for buying? If there will be an earthquake that will destroy the infrastructure and buildings where will the government get that extra money to rebuild destroyed roads and bridges? Etc

The government is considering a joint venture with private sector in power projects. This is only in hydroelectric power projects. But it does not consider to be engaged in Solar Energy, Wind Power and Biogas. This is completely wrong since its first priority is Electricity and this should mean that the government should be engaged in all means of generating electricity for the country.

Dr.Khamis

Sweden

Dear all.

Thank you members for the constructive ideas concerning the 2011/12 budget.

As far as my ideas are concerned, the budget sounds very good in achieving development goals if at all everything goes as it appears in it.

My worry comes in the real allocation of those funds to the Ministries and Departments for implementation of the set policies. The experience is; release of fund may only be for one or two quarters yearly. There is a need therefore to focus on this problem first for the budget to be said it is workable or effective.

Thanks.   

Prof. Mbelle

Thank you for pointing out the intricacy of putting the budget together. I hope people will focus attention on issues that matter as we discuss the budget.

All the best

Servacius

First of all I must indicate that I used to coordinate work on the government budget in the early 1970s and it is a complicated task to put hundreds of needs and numerous priorities into a coherent budget. For this Mkulo and his people must be congratulated; more so for elevating topical issues of infrastructures (power and transport) into top priority.

The only fault was that the anticipated power projects were not listed with clear sequencing to assure us that they will come on stream to get rid of the power shortages that are crippling the economy. In this context I deplore the current attitude of relegating hydro-power to a negative factor contributing to power shortages. Taking into account the actual and the opportunity cost of gas and imported for electricity generation, I am not sure how these play out in the long run vis-a-vis the cost of hydro power. It must be recalled also that Tanzania geography is not uniform in terms of rainfall so that where this has disappointed us in the past, it should not be applied wholesale to the whole country. Currently the western parts of the country have abundant and reliable rainfall throughout the year.

Next I will tackle taxation and employment if no onelse deals with the subjects.

I end here as first contribution.

Deo Mutalemwa

Dear TAKNET Members,
The budget for the year 2011/2012 has been announced by the Minister responsible for Finance, and Economic Affairs.  In response to that TAKNET has developed a topic with the purpose of collecting your views on how you think 2011/12 Government budget has succeeded or failed to address the long term policy objective of Economic growth and reducing poverty.

To get an overview of the topic and the budget please read the introduction above; you can also have access to the full budget speech from Tzonline website available at: www.tzonline.org

Thank You