2022/2023 BUDGET: Govt surpasses revenue target

DODOMA: THE government surpassed its total revenue target in 2022/2023 after collecting a total of 41.880tri/-, which was above the approved budget of 41.480tri/-, the audited Central Government’s report for the 2022/2023 financial year shows.

According to the report, which was tabled in Parliament yesterday, the revenue collected in 2022/2023 financial year was above the approved budget by 400bn/-.

The actual revenue collected during the year under review increased by 3.582 tri/-, compared to 38.298 tri/- collected in the previous financial year (2021/2022).

The report further shows that domestic revenue from tax, non-tax, and Local Government Authorities ( LGAs) financed the budget by 26.515 tri/- (63 per cent ), while 15.365 tri/- (37 per cent) emanated from grants and borrowings (759bn/- from grants and 14.606 tri/- from borrowing).

During the financial year under review, the Controller and Auditor General (CAG), Mr Charles Kichere issued 475 audit opinions to entities that submitted their financial statements for audit.

According to the report, of the total 475 audit opinions, 471 were unqualified, one qualified, one adverse, and two were issued with a disclaimer of opinions.

The CAG also performed audit of the Consolidated Financial Statements, which was issued with qualified opinion.

With regard to the public debts management, the audited report shows that, as of 30 June 2023, the public debt stood at 82.25 tri/-, consisting of domestic and external debt stocks of 28.92 tri/- and 53.32 tri/-respectively, representing an increase from the reported 71.31 tri/- in 2021/2022.

According to the CAG, the increase is attributed to net disbursements (new loans net of principal repayments).

However, the CAG said the public debt is deemed sustainable, as the ratio of the present value of both external and domestic debt to GDP stays below the established threshold.

Mr Kichere said the risk of external debt distress remains moderate, similar to the previous year, and is attributed to inadequate export levels.

With regard to expenditure management, Mr Kichere found that seven entities violated financial regulations by having unused funds amounting to 2.45bn/- in their imprests’ expenditure accounts.

Also, 13 entities made payments of 2.87bn/- without demanding Electronic Fiscal Devices (EFDs) receipts from suppliers and service providers.

Also, read: CAG REPORTS: Analysts commend improvements

The CAG further noted that rehabilitation of chancery in Tanzania High Commission in Kampala Uganda did not commence despite having funds amounting to 1.78bn/- since July 4, 2018.

He also noted the high rental expenses for 39 Tanzania missions abroad of 18.46bn/- during the 2022/2023 financial year.

On procurement management, the report found that 25 Ministries, Departments and Agencies(MDAs) did not implement their planned procurements of 565.49bn/-, four Water Authorities implemented procurements of 537.93m/- without having Annual Procurement Plans (APPs), and six MDAs made procurements of 1.82 bn/- out of their Annual Procurement Plans.

The CAG also noted that projects valued at 635.12bn/- commenced without the Environmental and Social Impact Assessment Certificates while 15 MDAs made procurements of 7.12bn/- without their Tender Boards’ approvals.

The CAG further noted ineffective tender invitation, evaluation, and award processes as 16 MDAs procured goods and services amounting to 149.56bn/- without using eprocurement.

It is also documented in the report that six MDAs made uncompetitive procurements amounting to 77.67bn/-.

Procurements of goods worth 2.16bn/- were made without contracts and contracts amounting to 4.78bn/- were not vetted by the Attorney General or PSE’s Legal Officers.

Additionally, the CAG identified some shortcomings in fulfilling contractual obligations. A total 11 MDAs settled claims of 38.73bn/- late and remained with outstanding claims amounting to 19.37bn/- beyond the agreed timeframes.

Moreover, the CAG noted interest of 17.48bn/- accrued from unpaid arbitration settlements since 2014 by the Ministry of Works, along with interest of 34.82bn/- charged to TANROADS on delayed contractors’ payments. Also, 46 construction contracts lacked valid performance securities worth 383.76bn/-.

According to the report, the CAG found that the Mining Commission and RUWASA failed to ask for the performance bond and advance payment bank guarantee worth 675.90m/- on terminated contracts.

The CAG also noted abandoned projects valued at 7.12bn/- and a slow pace in executing projects with the contracts amount of 200.01bn/-.

Mr Kichere said the rehabilitation of the Tanzanian old chancery building in Washington DC faced various challenges, including a substantial cost overrun of 94 per cent exceeding the engineer’s estimate, omission of the work from the Annual Procurement Plan, and an unjustified VAT rate of 20 per cent compared to the standard six per cent in Washington.

He also said delays in paying Interim Payment Certificates (IPCs) raised the risk of additional interest payments to the contractor.

During the audit, he noted that the Medical Stores Department purchased 10 diathermy machines from a supplier at 136.7m/- disregarding the lowest bidder who offered a price of 103.2 m/-, leading to increase of avoidable cost of 33.5m/-.

Similarly, he said, 32 medical equipment were solicited from suppliers without prequalification and tender board approval, resulting in an awarded price of 4.14bn/-, pointing out that there is also pending procurement of medical equipment valued at 13.37bn/-, contrary to the plan.

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