Locally financed development expenditure up 53.6pc

Dar es Salaam. Development expenditure financed through locally sourced funds increased by 53.6 per cent to Sh758.3 billion during the year ending December 2019 from Sh493 billion recorded the previous year, according to the Bank of Tanzania (BoT).

Of the sum spent on development projects, 78.9 per cent was obtained from domestic sources, BoT says in its Monthly Economic Review for January 2020.

The amount was lower than the Sh1.1 trillion spent during the year ended in November 2019, but higher than the Sh690.6 billion spent during the year ended in October 2019.

The report shows that the amount was nearly 120 percent of the sum spent as wages and salaries during the period under review, which amounted to Sh583.5 billion. Other recurrent expenditure totalled Sh392.3 billion.

There was also an increase in the sum of funds sourced externally to finance development expenditure, with Sh202.6 billion being spent during the year ending December 2019 from Sh192.5 billion recorded the previous corresponding period.

The government is currently implementing various development projects, mainly in infrastructure, energy, health and education.

Major projects financed through funds sourced locally include the construction of a standard gauge railway (SGR) linking Dar es Salaam and Dodoma via Morogoro.

There is also the Sh6.558 trillion Nyerere Hydropower Station, which is expected to generate 2,115 megawatts upon completion. The government is also implementing the Air Tanzania Company Limited (ACTL) revival plan, which goes hand in hand with the purchase of new aircraft.

The expansion of Morogoro Road from Kimara to Kiluvya in Dar es Salaam is expected to cost Sh141.56 billion. Work began in 2018, and was due to be completed within 30 months.

Other ongoing infrastructure projects include the construction and rehabilitation of passenger and cargo marine vessels, improvement of airports and construction and repair of schools and hospitals.