To show his seriousness on cost-cutting, Dr Magufuli stunned Members of Parliament when he slashed the budget for his inaugural cocktail party from Sh250 million to Sh15 million
Dar es Salaam. President John Magufuli’s cost-cutting measures may have had a negative effect in some areas, but economists believe in his first 100 days in office, the former Works minister has rekindled hope that an economically independent Tanzania is possible.
“Dr Magufuli’s 100 days in office have simply showed us that Tanzania can easily become economically independent if the leadership institutes prudent economic management measures,” said Prof Humphrey Moshi of the University of Dar es Salaam’s Economics Department.
The President did not waste time, but hit the ground running, introducing a raft of austerity measures targeting the curse of free spending in government.
He banned all but essential foreign travels by public servants – any government business in foreign countries would be handled by ambassadors.
He also restricted first class and business class tickets to the President, Vice President and Prime Minister. Ministers and CEOs of State agencies would use economy tickets together with the masses.
To show his seriousness on cost-cutting, Dr Magufuli stunned MPs when he slashed the budget for his inaugural cocktail party from Sh250 million to Sh15 million. He directed that the rest of the money from the budget be spent on purchasing beds for the Muhimbili National Hospital.
Scored big on this one
And in what may have sent shivers down the spines of some members of the business community, Dr Magufuli ordered the cancellation of meetings and conferences in hotels for public servants. They would now use board rooms in their offices.
Prof Moshi believes the President scored big on this one.
“Basically, hotels are not meant for conferences. They are places where visitors sleep and dine,” he said.
Dr Magufuli also scrapped Independence Day celebrations, annually held on December 9, and directed that the money set for the usually colourful event be spent on the expansion of a road between Mwenge and Morocco.
“Such measures are simply good for the economy. He has shown that it is possible to cut costs and increase revenue,” said Prof Samuel Wangwe, the immediate past executive director of Policy Research for Development (Repoa).
During the 100 days, a crackdown on tax evasion and corruption at the Tanzania Revenue Authority (TRA) and Tanzania Ports Authority (TPA)raised a whopping Sh1.4 trillion.
This was much more than an average of Sh1.025 trillion that the taxman is required to collect each month to partly implement the country’s Sh22.5 trillion budget for the financial year 2015/2016.
Concurring with Prof Moshi, Prof Wangwe said Dr Magufuli has shown that his administration has the much-needed political will to deal with corruption.
They told The Citizen that Dr Magufuli had also brought sanity and respect for the public service and public finances.
“I was in Dodoma recently (the interview was held on Tuesday, February 2) and, contrary to what we were used to, I could not see vehicles with government number plates moving around aimlessly. Public servants are now going to their respective offices on time and they work diligently. Things are really changing,” said Prof Moshi.
Potential setback
Much as they find the going good, at least for now, some analysts fear ministers could be a major setback for the President.
They cite the manner in which some ministers had been treating their subordinates in a desperate attempt to show the President that they subscribed to his ‘Hapa Ni kaziTu’ principle.
“We now need the ministers to start working and stop making harsh and hurried decisions just to send a message to the President that they are also on duty,” said Prof Moshi.
