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TZ faring well on prudent spending

TANZANIA is the 28th globally in the World Economic Forum (WEF) ranking for efficiency of government spending, thanks to extensive public sector reforms.

The WEF ranking shows Tanzania has a 4.2 score, up from 2.9 marks it obtained in the previous WEF ranking in 2017 where it occupied the 83th position.

The East African Community’s (EAC) second largest economy trails Rwanda which is the fifth globally and leads in Africa with 5.6 marks and Lesotho which is 21st globally and third in Africa with 4.4 marks.

According to the report, the marks are spread from one to seven where one means extremely inefficient and seven extremely efficient. The efficiency of government has a significant bearing on a country’s competitiveness and economic growth.

The new ranking has come amid ongoing improvements in the public sector management reforms where strengthening of Public Financial Management (PFM) competence has been at the core of Tanzania’s development efforts over the past two decades with the Government- Donor financed Public Financial Management Reform Programme (PFMRP) the main vehicle of support for comprehensive reforms since 1998.

The main objectives of the reform programme include improved macro-economic management (prudent fiscal, tax and debt policies) which provides the basis for a credible budget and efficient allocation of resources on a medium-term basis in alignment with national priorities.

Other objectives are to ensure government budget executed as planned and timely and accurate reporting is available and strengthened internal controls and better procurement practices which contribute to improved financial accountability.

Tanzania is using domestic resources in executing mega energy and transport infrastructure projects which include construction of a standard gauge railway in which the country plans to spend 14.2billion US dollars over the next five years to build the 2,561 kilometre-SGR connecting its main port of Dar es Salaam to landlocked neighbours including the Democratic Republic of Congo, Rwanda and Uganda.

The government also plans to spend 3.6 billion US dollars for the 2,115-megawatt Rufiji hydro-electricity project in Rufiji, Coast Region, that is expected to boost the industrialisation agenda with availability of reliable electricity.

PRESIDENT John Magufuli yesterday described the 699.2bn/- Kigongo-Busisi ...

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Author: DAILY NEWS Reporter

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