Government to increase spending by 3.2 pc in coming fiscal year - The Citizen

Government to increase spending by 3.2 pc in coming fiscal year

Tuesday November 6 2018

Finance and Planning minister Philip Mpango

Finance and Planning minister Philip Mpango presents the 2019/20 National Development Plan in Parliament in Dodoma. PHOTO I ERICKY BONIPHACE 

By Sharon Sauwa @TheCitizenTZ news@tz.nationmedia.com

Dodoma.  The government plans to increase its expenditure by 3.2 per cent in the 2019/20 financial year compared to the current financial year.

Finance and Planning minister Philip Mpango said the government’s expenditure was set to jump to Sh33.5 trillion in the next financial year, well above the current fiscal year’s Sh32.47 trillion.

Dr Mpango was speaking on Tuesday, November 6, 2018 here in the Parliament during the presentation of the National Development Plan for 2019/20 for debate and deliberation.   

He said some Sh13.55 trillion, equivalent to a 9.45 per cent increase compared to the current year, is expected to be used for financing development projects.

The sum is translated to 40.4 per cent of the total budget proposed to be spent for the coming financial year.

Expounding that some Sh19.95 trillion, representing 59.6 per cent of the expected total budget, is earmarked for recurrent expenditure, according to the minister.

He stated that some Sh7.55 trillion would be spent on paying salaries to civil servants under the period of reference.

He also said that during the period under reference, some Sh8.62 trillion was expected to be used for financing both domestic and foreign debt.

He added that Sh4.9 trillion would be used for payment of various products, services and subsidies.