Tanzania revenue projections ‘optimistic’

Business Daily Kenya:  Tanzania may have to delay the construction of some of its major infrastructure projects because its revenue expecta...

Business Daily Kenya: 

IMF Deputy Managing Director Tao Zhang. Photo/Courtesy

Tanzania may have to delay the construction of some of its major infrastructure projects because its revenue expectations for 2017/18 are “potentially over-optimistic”, the International Monetary Fund (IMF) says.

The country plans to increase spending in its budget for the fiscal year ending June 2018 by 7.3 per cent to TSh31.71 trillion ($14.21 billion), with a key focus on infrastructure.

Like neighbouring Kenya, Tanzania wants to take advantage of its long coastline and upgrade outdated railways, ports and roads to serve growing economies in land-locked parts of Africa.

“The 2017/18 budget reaffirms the authorities’ objective of scaling up public investment while preserving fiscal sustainability,” IMF Deputy Managing Director Tao Zhang (pictured) said in a statement.

“However, potentially over-optimistic revenue projections call for its prudent implementation, including by delaying some large projects until the availability of revenues is confirmed.”

In the coming fiscal year, Tanzania plans to borrow TSh6.17 trillion from domestic sources and expects TSh3.97 trillion from external concessional loans and grants.

It is also seeking an additional TSh1.59 trillion from external non-concessional loans and raise tax revenue to 14.2 per cent of gross domestic product in 2017/18, up from an estimated 13.3 per cent previously.

Big gas discoveries in the country and oil finds in Kenya and Uganda have turned East Africa into an exploration hotspot for oil companies. -Reuters

The post Tanzania revenue projections ‘optimistic’ appeared first on Mediamax Network Limited.

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