ZANZIBAR plans to collect over 2.7tri/- for recurrent and development expenditures in the 2023/2024 fiscal year, it was announced here on Wednesday.
The new budget outlook, which the Minister of State in the President’s Office, Finance and Planning, Dr Saada Mkuya Salum presented in the House of Representatives, indicates a six per cent increase from the current 2.59tri/- budget.
According to the minister’s proposal, 54 per cent of the envisaged revenues will be directed to development projects. Dr Mkuya said development projects will consume 1.47tri/-, with 1.26tri/- channelled to recurrent expenditures.
She said the government spending will focus on flagship projects, with transport infrastructure, the blue economy; agriculture and livestock; industrial sector and social services topping priorities.
Minister Mkuya informed the house that the government is determined to invest heavily in improvement of transport infrastructure, citing Pemba and Nungwi airports; Mangapwani integrated port as well as Malindi port in Unguja and Wete and Mkoani ports in Pemba.
The budget also prioritises road construction, with 125.5 kilometres of trunk roads, 100.9 kilometres of urban roads, 275.9 kilometres of rural roads and 277 kilometres of feeder roads highlighted in the expenditure proposal.
Under the blue economy sector, the government intends to enhance supportive infrastructure, including integrated fishing ports—Mkokotoni in Unguja as well as Shumba Urban, Wete and Mkoani in Pemba; development of landing sites and modern fish markets at Kama and Fungurefu, the minister said.
The budget outlook further aims at improved water and electricity supply; improvement of industrial parks; and improved tourism sector.
Moving the Development Plan and 2023/2024 economic outlook, Dr Mkuya said Zanzibar economy, which registered a 5.9 per cent growth last year, is projected to grow at 6.1 per cent in 2023 and 6.6 per cent next year.
She said during the first half of the 2022/2023 financial year, which ended last December, the government spent 190bn/- or 71 per cent of the projected 268bn/- in development projects.
The government contributed 130bn/- (67 per cent) of the 193bn/- target while development partners disbursed 59.78bn/-, honouring their 74.9bn/- commitment by 79.8 per cent.
Minister Mkuya said the Zanzibar economy grew impressively in the July-December 2022 period, attributing the growth to an influx of tourists to 345,300 from 205,387 visitors in the corresponding period in 2021. Increased clove and seaweed exports also contributed to the economic growth.
However, during the first six months of the 2022/2023 fiscal year, inflation rose to 6.6 per cent mainly due to an increase in prices of food and non-food items, said the minister, noting that food and non-food inflation averaged at 9.3 and 4.8 per cent, respectively.
