Minister of Finance and Planning, Dr Mwigulu Nchemba on Monday tabled guidelines for the preparations of government budget for the fiscal year 2023/24 outlining state plans to collect and spend about 43.29tri/-.
The new figure is a 4.4 percent rise from the current budget of 41.48tri/-. “An increment will depend on an actual revenue collection trend and measures taken by the Government to boost revenues,” the finance minister told Parliamentarians.
Additionally, the increment also depends on the first charge expenditure including project contracts, government debt and wage bills.
Elaborating, Dr Nchemba stated, the government expects to collect 31.03tri/- internally, which is about 71.7 percent of the entire proposed budget. He said development partners are expected to contribute 4.5tri/-, being 10.9tri/- of the spending plan as the State plans to secure 5.64tri/- loan from local markets. The cash obtained will be used to service development projects, he said.
According to the tabled dossier, until June 2022, the Government debt amounted to 71.56tri/-.
Citing Moody’s Investors Service report released October 7, this year, he insisted that the debt was still sustainable in the short, medium and long term.
However, the Parliament’s Budget Committee Chairman, Sillo Baran advised the Government to observe Debt Service to Domestic revenue ratio for the State to be in position of servicing the debt from locally generated income.