PREVIEW: The 2009/10 Budget


Finance and Economic Affairs Minister Mustafa Mkulo is this week expected to table in Parliament the  2009/10 budget estimates for the next fiscal year. Observers will be looking to see if it is development oriented, if it really is 'Agriculture First' as the theme for this year’s budget suggests, or whether it is equitable. From the Budget Guidelines, the draft briefs to Parliamentary Finance and Economy Committee (PFEC) and other sources, we are able to preview the 2009/10 budget:


•    Expenditure is expected to be 9.51 trillion shillings, up 32 percent over 2008/09.
•    Recurrent expenditure is put at 6.69 trillion shillings while the rest will go to development. In 2008/09 the government set recurrent expenditure at 4.73 trillion shillings.
•    The government sees 3.18 trillion shillings coming from donors, making up 33 percent of the budget. In 2008/09, donors funded 34 percent of the budget.
•    Domestic revenue is seen at 5.1 trillion shillings, or 16.4 percent of gross domestic product (GDP), compared with 4.73 trillion shillings, or 15.9 percent of GDP, a year before.
•    The government will seek 1.08 trillion shillings from domestic markets, with 506.19 billion for development spending and 576.5 billion to pay for maturing government securities.
•    Agriculture, one sector hard-hit by the slowing global economy, will receive 667 billion shillings, up 30 percent from the year before.
•    Education will receive 1.73 trillion shillings, up 22 percent from the previous year.
•    Infrastructure will receive 1.09 trillion shillings, up 12.7 percent from 2008/09 to improve railways, roads, ports, airports and help the state-run airline, Air Tanzania.

In keeping up with our tradition of analysing the national budget, Policy Forum will upload its Policy Briefs on this platform shortly.

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