TANZANIA: IN a remarkable display of fiscal achievement, the Office of the Treasury Registrar (OTR) has announced that it surpassed its NonTax Revenue (NTR) collection target from Public and Statutory Corporations (PSCs) and minority interests (MIs) by an impressive 205 per cent in February.
DURING the review period, the OTR garnered 37.2bn/-, a significant leap from the target of 12.2bn/-, underscoring the efficient and effective operational environment fostered by the government.
The contribution to the Consolidated Fund accounted for the lion’s share of the revenue at 30.2bn/- , followed by dividends amounting to 4.5bn/- and surplus and other remittances totalling 2.5bn/-.
Mr Nehemiah Mchechu, the Treasury Registrar, attributed this success to the supportive policies established under the fifth-phase regime of President Dr Samia Suluhu Hassan.
“The policies implemented have allowed PSCs and MIs to operate efficiently, enabling them to scale up their contributions to the government’s coffers,” he explained recently.
This strong performance is particularly noteworthy against the backdrop of ongoing economic challenges faced by many African nations, where resource mobilisation has become increasingly critical.
In a broader context, dividends have consistently been the largest source of Non-Tax Revenue (NTR) for the OTR, contributing an average of 47 per cent over the past nine years.
This underscores the importance of PSCs and MIs in stabilising the national revenue base, particularly as they adapt to changing economic landscapes.
“The government’s focus on operational excellence and commercial viability is crucial,” Mr Mchechu emphasised, noting that his office oversees 308 PSCs and MIs.
He went on to add: “We need to assess how to grow each funding source more consistently to significantly increase contributions to the Consolidated Fund.”
The success in February signals not just a momentary triumph but a potentially sustainable model for increasing public revenue.
With the United Nations Economic Commission for Africa pointing out that NTR remains an underutilised resource, the implications for Tanzania are significant.
Enhancing NTR can provide a much-needed buffer against declining official development assistance, rising debt and limited domestic resource mobilisation.
A call for sustainable growth as the OTR looks to the future, the focus will remain on increasing the effective and sustainable contributions of public entities to national development.
Mr Mchechu’s commitment to operational excellence and financial viability aims not only to meet immediate fiscal targets but to lay the groundwork for long-term economic stability.
In a time when countries are navigating through complex fiscal challenges, the OTR’s recent achievements serve as a beacon of hope.
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By cultivating a robust environment for PSCs and MIs, the government has demonstrated that strategic policy implementation can yield remarkable fiscal results.
