2023/24 BUDGET FRAMEWORK: Main areas of focus

THE government is targeting to further implement a number of priority projects during the next fiscal year, with a view to stimulate competitive and inclusive economy and boost industrial production and trade.

The areas of focus are also expected to motivate human development, develop human resources, enhance public-private partnership and increase investments in public institutions and parastatals.

This is according to the proposed National Development Plan and the budget framework for the 2023/24 as presented on Monday by Finance and Planning Minister Dr Mwigulu Nchemba to Members of the Parliament in Dodoma region.

The document suggests to collect 44.3tri/- for recurrent and development expenditure during the financial year. According to Dr Nchemba, recurrent expenditure will be 29.2tri/-, with the development expenditure taking up the remaining 15.1tri/-.

This suggests that the development expenditure accounts for 34 per cent of the total budget, with the recurrent expenditure accounting for the remaining lion’s share.

On the priority, Dr Nchemba mentioned several projects in different sectors, including infrastructure, transport, mining, oil and gas, agriculture, industry, energy and others.

One of the key transport infrastructures to receive significant budget for implementation is the Standard Gauge Railway (SGR).

Under the plan, the new budget intends to spend 1.2tri/- to finalise the construction of Dar es Salaam-Morogoro SGR section (300km), Morogoro-Makutupora stretch (422km) and continue for Mwanza – Isaka (km 341), Makutupora – Tabora (368 km); Tabora – Isaka (165km);  and start construction on another part  from Tabora – Kigoma (506km) and Uvinza (Tanzania) – Musongati – Gitega (Burundi) (282km).

The government will also set aside funds for compensations to people who vacated their areas to pave the way for the implementation of Tabora-Kigoma SGR section. The 506 km final section of the SGR from Tabora to Kigoma would be completed in 2026.

For the ongoing Julius Nyerere Hydropower Project (JNHPP), the government would pump in 1.6tri/- for activities to be undertaken, which include continuing with construction of main dam, tunnels, power house and switch yard.

Minister Nchemba mentioned some of the activities to be implemented by the government as to improve the Air Tanzania Company Ltd (ATCL) operations, setting aside 603.25bn/- from internal sources to procure five new planes namely Boeing 787-8 Dreamliner, two Boeing 737-9, one cargo Boeing 767-300F and one De Havilland Dash 8 Q400.

Also in the year under review, the government will procure Boeing Business Jet 737 – 7.

This would go hand in hand with maintenance and construction of airport infrastructures, whereby a total of 603.25bn/- would be allocated.

He said that 10bn/- will be allocated from domestic sources for the execution of the JPM-Kigongo Busisi Bridge.

“The activities for implementation at the JPM-Kigongo Busisi Bridge will be the construction of the bridge and the access roads,” Dr Nchemba noted.

The government also looks forward to spend 1.5bn/- for further financing the construction of the Hoima-Tanga crude oil pipeline, whereby the budget will focus on paying compensations, to start construction of the pipeline and the port.

Dr Nchemba also said the government would direct 4bn/- to the Liquefied Natural Gas (LNG) project, for finalising payment of compensations, building capacity on how to implement the project and making preparations for securing license and doing Pre-FEED study at the project area.

The new budget would also see the allocation of 3.03bn/- for implementation of the Mchuchuma coal project and 2.47bn/- for implementing some activities for Engaruka Soda Ash Project, including paying compensation, conducting brine resource appraisal and techno-economic study review.

Minister Nchemba said 1.26tri/- would also be channeled to funding various projects for regional, district and rural roads construction and repair with aim of opening up country’s economic potentials.

For instance, the minister noted that the government would also continue implementing the Dodoma City Outer Dual Carriageway Ring Road, whereby a total of 5.0bn/- domestic funds and another 35.09bn/- foreign funds have been allocated for that purpose.

The National Development Plan and budget framework further prioritises improvement of ports in the country, whereby a total of 231bn/- will be set aside for the purpose.

The projects include to continue with dredging of the entry channel of the Dar es Salaam Port and improvement of berth number 8 to 11 and enhancing feasibility study for construction of berth number 12 to 15 upon which 157.06bn/- would be spent.

This will go in line with undertaking activities for improving and expansion of the Tanga Port (1.8bn/-), Mtwara (5.2bn/-) and Bagamoyo (30bn/-).

In regard to state-of-the- art Kilwa Fishing Port, the government has allocated 200.62bn/-  from domestic sources, while also allocating 11.9bn/- for the procuring of two fishing vessels, which will  operate in an Exclusive Economic Zone (EEZ).

Dr Nchemba also explained that during the next financial year, the government, through the Agriculture Sector Development Programme II (ASDP II), will strengthen research infrastructures and conduct researches that would lead to innovation of new seeds and better agriculture methods. In total, the government has allocated 754.63bn/- for agriculture sector and- and another 642.59bn/ for livestock sector.

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