Zanzibar envisages 4.08tri/- budget

ZANZIBAR: ZANZIBAR plans to collect over 4.08tri/- for recurrent and development expenditures in the 2024/2025 fiscal year, as announced here yesterday.

The new budget outlook, presented by Minister of State in the President’s Office, Finance and Planning Dr Saada Mkuya Salum in the House of Representatives, indicates a 43.8 per cent increase from the current 2.84tri/- budget.

She stated that an estimated 1.7tri/- will be collected from domestic sources, while 1.5tri/- will be collected from internal and external loans for the implementation of development projects.

Dr Mkuya informed the House that it is estimated that 805.01 billion shillings will come from development partners, including 565.63bn/- in concessional loans and 151.11bn/- in grants.

Additionally, 0.27bn/- will be derived from the Development Partners Joint Fund, and 88bn/- in budget support. Revenue from local government sources, including fees, is estimated to be more than 22bn/-.

In the proposal, 1.63tri/- will be allocated to development projects, with 2.4tri/- directed towards recurrent expenditure.

Dr Mkuya stated that the government continues to review and evaluate public institutions that receive subsidies based on criteria set by law to reduce operating costs and increase efficiency in government operations.

For the 2024/2025 fiscal year, the government will continue to manage revenue collection, promote financial discipline, strategically allocate resources, and direct funds to productive development projects, she said.

The government will work to control the budget deficit by using soft loans from internal and external sources to finance projects that stimulate economic growth and maintain acceptable levels of debt sustainability.

Dr Mkuya also mentioned that the economic growth rate has increased to an average of 7.6 per cent from 6.3 per cent, attributing this growth to an increasing number of tourists, a rise in fishing to 2.9 per cent from 2.6 per cent, and growth in the construction industry to 0.1 per cent from -0.5 per cent.

The budget outlook aims to improve water and electricity supply, enhance industrial parks, and boost the tourism sector.

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