Monday, April 22, 2013


By Veneranda Sumila
The Citizen Reporter
Dar es Salaam. Despite depending on donor funding by 30 per cent, Tanzania has failed to collect Sh252.8 million fees from some tour operators.In his 2012 report, Controller and Auditor General Ludovick Utouh indicated that the government failed to collect $158,000 (Sh252.8 million) as fees from tour operators alone. The CAG review for 2011/12 fiscal year has shown that some tour operators had not paid licence fees totaling $158,000.
“This is contrary to regulation 4 of the tourism (fees and charges) regulations of 2009,” says CAG.
According to a recent presentation of 2013/14 Budget guidelines and expectations by Finance minister William Mgimwa, out of Sh5.2 trillion allocated for development projects for the next financial year, Sh2.46 trillion is expected to come from domestic sources and the rest from donors.
But experts say the dependency could be reduced if the government increases domestic sources of financing development projects.Recently, Norwegian diplomat Olav Lundstol urged Tanzania to wean itself off support for its budget by 2025. Tanzania’s abundant natural resources should enable it to sustain itself in 12 years to come, Mr Lundstol told a seminar on financial secrecy.“By 2025 Tanzania should be able to finance its own budget without external aid. We are of the view that the pattern of cooperation should be commercially inclined,” said Mr Lundstol, who is a chancellor at the Norwegian Embassy in Dar es Salaam.
Under the 2013/14 preliminary Budget projection, the government will spend Sh17.7 trillion on recurrent and development activities. Out of the amount Sh12.5 trillion will be for recurrent expenditure and the rest for development projects.
In the 2012/13 Budget, Sh10.5 trillion was for recurrent expenditure and the remaining Sh4.5 trillion for development projects. Out of the development budget of Sh4.5 trillion, Sh2.2 trillion was planned to come from local sources and the remaining from foreign sources. For years the country has been depending on donor assistance despite natural resources available
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