Here is where concessional loans will come from

CHUNK of grants and concessional loans for implementation of development projects in the 2023/24 national budget will come from the World Bank.

In the coming fiscal year, the government is expecting to secure 5.46tri/- grants and concessional loans from development partners with the World Bank expecting to contribute 2.8tri/-.

The money will partly support implementation of the 44.39tri/- national budget that kicks off on July 1 this year.

Apart from World Bank, the International Monetary Fund (IMF) would issue 713bn/- followed by African Development Bank (AfDB) that is set to contribute 693bn/-, Global Fund (271bn/-), European Union (192bn/-) and the French Development Agency-AFD (146bn/-).

Tabling the expenditure plan for the coming fiscal year in the National Assembly on Thursday, Finance and Planning Minister Dr Mwigulu Nchemba said more focus will be put on implementation of flagship development projects.

He informed the house that the 2023/24 budget will support the government’s efforts to implement the Tanzania Development Vision 2025 and the Third National Five-Year Development Plan (2021/22 – 2025/26).

A list of priorities for the 2023/24 budget include completion of flagship and strategic projects such as construction of Standard Gauge Railway (SGR), revamping Air Tanzania Company Limited (ATCL) and construction of Julius Nyerere Hydropower Project (2,115 MW).

The government will also throw weight in construction of the Ruhudji (358 MW) and Rumakali (222 MW) hydropower, Liquefied Natural Gas (LNG) in Lindi, construction of J.P Magufuli bridge (Kigongo-Busisi).

The list also includes construction of roads and bridges and developing special economic zones including strategic investment areas in Bagamoyo.

“These projects are expected to have big and immediate results on economic growth, job creation and income generation,” said the minister, thanking development partners for their continued support in the execution of various projects.

Development partners expected to contribute to 2023/24 government budget include the governments of Australia, Austria, Canada, China, Denmark, Finland, India, Ireland, Italy, Japan, Republic of Korea, United States of America, Norway, Poland, Sweden, Belgium, France, Spain, Netherlands, United Kingdom, Germany and Switzerland.

More so, Dr Nchemba said in the coming financial year, the government is expecting to borrow 5.44 tri/- from the domestic market, of which, 3.54 tri/- will be for rolling over of maturing Government Treasury Bills and Bonds.

“The remaining 1.9 tri/- is for financing development projects. The government also expects to borrow 2.1tri/- from non-concessional sources for the purpose of accelerating implementation of development projects,” he added.

In 2023/24, the government has planned to spend 44.39tri/- for recurrent and development expenditures. Out of which, 30.31tri/- is for recurrent expenditure, whereby 12.77tri/- is for servicing government debt and other expenditures under Consolidated Fund.

10.88tri/- has been allocated for salaries, including salary increase, promotions for existing employees and new recruits and 1.14tri/- is for development subsidies for covering provision of fee free primary and secondary education as well as higher education student’s loans.

“Development expenditures in projects both in central and local government authorities has been allocated with 14.08tri/-, while the remaining 4.52tri/- is for Other Charges,” noted the minister.

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