THE UNITED REPUBLIC OF TANZANIA
BUDGET FOR FISCAL YEAR 2010/11
APRIL – JUNE 2011
FULL YEAR BUDGET PERFORMANCE AND ECONOMIC
REVIEW
MINISTRY OF FINANCE
SEPTEMBER, 2011
EXECUTIVE SUMMARY
The preliminary results in the first half of 2011 showed GDP growth rate of 6.3 percent compared to
a growth rate of 7.4 percent in the corresponding period in 2010.
The slowdown in growth
emanated from the existing power shortages which have affected particularly manufacturing and
trade and repair economic activities during the period under review. The annual inflation rate
excluding food and energy increased to 7.2 percent in June 2011 from 7.1 in the year ending May
2011, having increased continuously from 3.5 percent in October 2010.
Overall Government budgetary operations for the fiscal year 2010/11 were satisfactory, despite the
observed shortfall in domestic revenue collections against the estimates. Annex A presents the
summary of budget performance for the fourth quarter of the year as well as full year budgetary
performance.
DOMESTIC REVENUE
Government domestic revenue collections for the fiscal year 2010/11 amounted to TShs
5,736.3 billion equivalent to 93 percent of estimates and 23 percent above collections in the
previous fiscal year. This was partly contributed by significant shortfall in excise duty collection
due to the decline in production of excisable products and non-tax revenue.
EXPENDITURE
During the year, the Government budget continued to operate on Cash Budgeting for the
release of funds on monthly basis. Total expenditure for the year registered at Tshs. 9,439.4
billion, being 88 percent of budgetary estimates for the year. Recurrent expenditure excluding
CFS stood at 97 percent of budget, while development expenditure was 72 percent of
budget estimates.
GRANTS AND FINANCING
Total grants received for the fiscal year 2010/11 stood at Tshs. 1,823.5 billion, equivalent to 90
percent of estimates and 30 percent higher than the corresponding period of the previous
year. Net foreign financing for the year stood at Tshs. 1,148.9 billion, being 59 percent of the
estimates of Tshs. 1,942.5 billion.
The overall Government net domestic financing for fiscal year 2010/11 was Tshs. 1,244.3 billion
compared to Tshs. 347 billion budgeted. This was due to a need to finance development
expenditure after non realization of non concessional borrowing.
1
RECENT ECONOMIC DEVELOPMENT
1.
The real GDP growth slowed down to 6.7 percent in the second quarter of
2011 from 7.2 percent in the corresponding period in 2010. Most sectors during the
review period recorded lower growth as compared with the performance of the
corresponding period in 2010 mainly on account of the ongoing power rationing
which started towards the end of 2010.
2.
The real GDP in the first half of 2011 has increased at a growth rate of 6.3
percent compared to a growth rate of 7.4 percent in the corresponding period in
2010. The slowdown in growth emanated from the existing power shortages which
have affected particularly manufacturing and trade and repair economic
activities during the period under review. Manufacturing activity recorded a
growth rate of 5.5 percent in the first half of 2011 compared to 6.0 percent in 2010.
The slowdown in growth is partly due to unreliable electricity power supply in the
country which also affected manufacturing establishments. Electricity activity grew
by 3.9 percent in the first six months of 2011 compared to 7.6 percent in the
corresponding period of 2010. The 3.7 percentage point decrease was due to
shortages of rainfall especially in the hydro dam catchment areas and the
servicing of the gas turbines during the period. Trade and repair economic
activities grew by 7.0 percent compared to 9.3 percent in the same review period
in 2010.
2
Year
Agriculture
Fishing
Mining and
quarrying
Manufacturing
Electricity
Construction
Wholesale and
retail trade
Hotels and
restaurants
Transport and
communication
Financial
intermediation
Real estate
Public
administration
Education
Other services
FISIM
GVA at constant
basic prices
Taxes on
products
GDP at market
prices
Source: NBS
3.
Table 1: GDP GROWRH
SEMI ANNUAL GDP
QUARTERLY GDP
2010
2011
2010
2011
FIRST HALF
FIRST HALF
Q1
Q2
Q1
Q2
2.6%
3.2% 2.0% 2.9% 2.6% 3.5%
1.5% 9.4% 1.9% 2.3% 0.7%
5.2%
24.0%
6.0%
7.6%
15.3%
4.1% 28.3% 20.5%
5.5% 4.5% 7.5%
3.9% 5.1% 10.0%
16.3% 8.6% 24.0%
2.1% 5.8%
4.8% 6.2%
4.7% 3.1%
8.2% 25.4%
9.3%
7.0%
9.0%
9.6%
8.0%
6.0%
5.3%
2.6%
3.5%
7.3%
2.9%
2.4%
8.8%
11.7% 11.3%
6.6% 10.5% 12.7%
12.6%
9.5%
11.1% 9.8% 14.6% 10.3% 11.6%
7.1% 13.1% 5.6% 7.8% 6.3%
6.8%
6.5%
5.9%
11.9%
4.8% 6.5% 7.0% 3.7% 5.8%
6.8% 5.9% 7.1% 6.8% 6.7%
4.0% 5.6% 6.3% 3.9% 4.1%
11.7% 10.5% 12.9% 11.3% 12.0%
7.5%
6.4%
7.6%
7.3%
5.9%
6.9%
6.7%
4.0%
9.0%
4.3%
4.9%
3.1%
7.4%
6.3%
7.7%
7.2%
5.8%
6.7%
Inflation for most of the first half of 2011 remained single digit and
experienced upward trend. However, during the period ending June 2011, the
annual headline inflation registered double digit of 10.9 percent.
3
Figure 1: NCPI Movement and Inflation Rates (June, 2010 – June, 2011 (September
2010 = 100)
4.
The annual inflation rate excluding food and energy increased to 7.2 percent
in June 2011 from 7.1 in the year ending May 2011, having increased continuously
from 3.5 percent in October 2010. This type of CPI excludes food consumed at
home and restaurants, non alcoholic beverages, petrol, diesel, gas, kerosene,
charcoal and electricity. Excluding food and energy which are the most volatile
components in the total NCPI could provide a more stable inflation figure for
policy makers. The annual inflation rate for food consumed at home and away
from home increased to 11.7 percent in the year ended June 2011 as compared
to 10.1 percent in the year ended May 2011. The annual inflation rate for energy
increased to 29.0 percent in June 2011 from 24.5 percent registered in year ended
May 2011. The high energy inflation was a result of increasing global demand for
fuel as well as strengthening of the US Dollar.
4
DOMESTIC REVENUE
5.
Domestic revenue collections for the fiscal year 2010/11 were Tshs. 5,736.3
billion against the collection target of Tshs. 6,176.2 billion which is the equivalent to
93 percent of the said target. During the fourth quarter of the fiscal year 2010/11,
domestic revenue collections including LGAs own source were Tshs.1,498.5 billion,
against the target of Tshs. 1,546.6 billion while Tax revenue collection were Tshs.
1,376.8 billion against the target of Tshs. 1,422.8 billion . This reflects performance
rate of 97 percent of the target. The underperformance was mainly attributed by
low collections in import duty and Value Added Tax despite the good
performance that was realized on income tax and excise duty. Overall collections
exceeded the amount realized in the similar period in fiscal year 2009/10 by 30
percent. Non-Tax Revenue collection was Tshs. 81.6 billion, equivalent to 101
percent of the estimated Tshs. 80.7 billion. Annex B summarizes the performance of
revenue in major tax components.
Taxes on Imports
6.
During the period April - June 2011, collections from import taxes amounted
to TShs. 516.9 billion against the target of TShs. 533.3 billion, representing a
performance level of 97 percent. Year on year comparison indicates a growth of
22% percent from that realized during the similar period of the previous year.
Import duty, Excise duty on petroleum, Excise Duty on non petroleum and VAT on
imports recorded 92 percent, 98 percent, 169 percent and 97 percent
respectively. Although there has been an improvement on proper classification
and valuation of duty payable goods on dry cargo as a result of centralization of
the valuation function at the customs service centre, it still holds that most of the
imported goods from EAC and SADC attract zero import rates, hence importers
are importing more within the region thus reducing revenue from imports. For the
full year, Tax on imports performed at 94 percent of the target of Tshs. 2,115.3
billion.
5
Taxes on Domestic sales
7.
During the fourth quarter of 2010/11, overall collections of taxes on domestic
sales continued to perform below their targets despite of the increase of 16
percent over collections realized in the corresponding period of the fiscal year
2009/10. Excise Duty scored 100 percent meanwhile Value Added Tax attained 74
percent of their estimates. VAT collections realized a slight increase comparing to
previous year performance by 6 percent while excise duty had a significant
change of 39 percent. Mining companies no longer pay VAT due to the
reinstatement of special relief treatment to them. Moreover, there has been
excessive repayment VAT returns which were received ending up with non
remittance of funds from taxpayers during the period. During the fiscal year
2010/11, taxes on domestic sales were Tshs. 1,166.3 against the target of Tshs.
1,396.6 which is the equivalent of 84 percent of the targeted amount.
Income Tax
8.
During the fourth quarter of the fiscal year 2010/11, collections from income
tax amounted to Tshs. 466.1 billion, being 114 percent of estimates and indicated a
growth of 34 percent from the corresponding period in the year 2009/10. Most of
Government Ministries and Departments paid PAYE in advance especially in the
month of June 2011 as it was the closure of financial year. It is a matter of fact that
there was an increase of voluntary compliance of the taxpayers as well.
Performance of income tax for the whole year indicated 101 percent of the target.
Other taxes
9.
During the fourth quarter, actual collections from other taxes category were
Tshs. 155.5 billion against the target of Tshs. 186.4 billion which is 83 percent
performance. All categories of other taxes performed below their estimates except
motor vehicle taxes which attained 104 percent for the period. During the fiscal
year 2010/11, the performance of other taxes was 3 percent below the target.
6
Non tax revenue
10.
During the fourth quarter, collections from Non-tax revenue surpassed the
target. Actual collections from this category were Tshs.81.6 billion against the
target of 80.7 billion reflecting the performance level of 101 percent. The good
performance was attributed by revenue from parastatal which realized 234
percent while all other sources were below the targets. Year on year change
indicated an increase of 48 percent compared to the corresponding period in
2009/10. The non tax revenue for the fiscal year 2010/11 performed at 78 percent
of the target while LGAs own source performed at 92 percent of the estimated
amount for the year. Details highlighting performance by major revenue
categories are on the figure 2.
Figure 2: Details highlighting performance by major revenue categories
Figure 2: Revenue Performance July- June 2011
2,500
In billion Shillings
2,000
1,500
1,000
500
(500)
Taxes
on
Imports
Estimates
Taxes
on
Income
Domestic
Tax
Sales
Actual
Other
taxes
Net
refunds
2009/10 Actual
7
Non tax
revenue
LGAs
own
source
EXPENDITURE
11.
The cumulative total expenditure for the quarter ended June 2011 amounted
to Tshs. 3,064.6 billion, being 111 percent of the respective quarter estimate.
Similarly, overall total expenditure in the year ending June 2011 was Tshs. 9,439.4
billion, accounting 88 percent of the annual budget estimates. The budget for
2010/11 was not fully executed due to non-realization of external non-concessional
borrowing as well as underperformance of domestic revenue collection. Despite of
the low execution in expenditure, protection were ensured in priority spending
namely health, education and economic infrastructure. On actual basis, annual
total expenditure increased by 26 percent compared to 2009/10. Annex C
presents a breakdown of expenditures by category for the fourth quarter and the
full year of 2010/11.
Recurrent expenditures
12.
Recurrent expenditures, excluding CFS, for April to June 2011 amounted to
TShs 1,832.3 billion or 117 percent of estimates. On year basis, actual recurrent
expenditure excluding CFS was TShs 5,827.7 billion that accounted for 97 percent
of budget estimate. Total recurrent expenditure had a growth rate of 19 percent
when compared to the size of recurrent expenditure executed in the previous
fiscal year. The least level of execution (62 percent of estimate) was observed in
retention scheme category of recurrent expenditure, which mirrors the shortfall in
non tax revenues collections from ministries and regions. Figure 3 below shows the
expenditure performance for major recurrent expenditure categories for the year.
8
Figure 2: Recurrent Expenditure by category July 2010- June 2011
7,000
6,000
5,000
Tsh billion
4,000
3,000
2,000
1,000
Wages and salaries
Transfer to Zanzibar
Institutional Transfers
MDAs/Regions&LGAs
Total Recurrent exc CFS
Estimates
13.
Actual Expenditure
Expenditure 2009/10
Expenditure on wages and salaries during April to June 2011 amounted to
TShs 595.7 billion, which was above the estimates by 15 percent. This trend of
spending above the estimates were also manifested in previous quarters, thus
culminating into total fiscal year expenditure on wages and salaries of TShs 2,346.4
billion a little bit higher than the budget estimate by 6 percent. This was due to
recruitment of teachers and health workers who were not budgeted for in 2010/11.
On annual basis, spending on wages and salaries increased by 36 percent from
the level executed in 2009/10.
14.
Interest payment for the fourth quarter reached a level of TShs 135.2 billion,
higher than the quarterly estimate by 16 percent. Out of these payments, TShs
119.9 billion and TShs. 23.3 billion were for domestic and foreign interest
respectively. This outturn is equivalent to 151 percent and 54 percent of the
quarterly estimates, respectively. For the fiscal year, total interest payment was TShs
353.4 billion, being 97 percent of estimates. The slightly low deviation of execution
was due to delay in submission of demand note. Year-on-year comparison
9
indicated that interest payment increased by 42 percent compared to the levels
in 2009/10.
Development expenditures
15.
Total development expenditure for April to June 2011 was TShs 708.6 billion,
which was 72 percent of the quarterly estimate. On annual basis, development
expenditure in 2010/11 amounted to TShs 2,611.3 billion, equivalent to 72 percent
of the budget estimate.
16.
In 2010/11, locally financed development expenditure amounted to Tshs.
984.6
billion
compared
underperformance
was
with
on
the
budget
account
of
of
Tshs.
1,366.1
non-realization
of
billion.
external
The
non-
concessional borrowing. Only USD 103 million was realized out of USD 525 million
budgeted for the year. The other part was financed through domestic borrowing.
The realized loan was from HSBC, under the Export Credit Agency (ECA)
arrangement, and was for the installation of Ubungo gas Turbine of 100MW.
17.
Foreign development expenditure amounted to TShs 1,764.5 billion in the year
ending June 2011, which was 72 percent of estimates, mainly explained by delays
in the disbursement of project grants and basket loans as well as delays in
reporting of D-Funds by MDAs and Development Partners.
GRANTS AND FINANCING
Grants
18.
The Government budget for 2010/11 continued to benefit from foreign
assistance in the form of grants and loans. Total grants received in the fourth
quarter amounted to Tshs. 254.1 billion, equivalent to 73 percent of the estimate
and 144 percent higher than the corresponding period in 2009/10. Total grants
received for the fiscal year 2010/11 stood at Tshs. 1,823.5 billion, equivalent to 90
10
percent of estimates and 30 percent higher than the corresponding period of the
previous year.
19.
The grants received during the year consisted of Program support of Tshs 727
billion; Project support (excluding MCC – USA) was Tshs 369.7 billion; Basket support
Tshs 334.6 billion; and MCC - USA Tshs 196.1 billion. Disbursements under all
categories exhibited a shortfall against their estimates and overall there was a
growth of 30 percent compared to the disbursements received in 2009/10.
Fiscal Deficit and Financing
20.
The overall deficit after grants for the year 2010/11 stood at Tshs. 2,772.1 billion
compared to estimates of Tshs. 2,572.5 billion. This performance is contributed by
the catch up in expenditure execution during the fourth quarter of the year as well
as the expenditure float.
Figure 3: Foreign Grants July 2010 - June 2011
900
800
In Billion Shillings
700
600
500
400
300
200
100
0
Programme Grants
Project Grants
Basket Support
Grants
Estimates
Actuals
July- June 2009/10
11
MCA (T) USA
21.
Net foreign financing for the year stood at Tshs. 1,148.9 billion, being 59
percent of the estimates of Tshs. 1,942.5 billion. Further, there was under
performances in project loans and foreign amortization as well as basket supports
performed below their estimates.
Figure 4: Foreign Financing July 2010 - June 2011
1400
1200
In Billion Shillings
1000
800
600
400
200
0
-200
Programme
Loans
Project
Loans
Estimates
Actuals
Basket
Support
Loans
Amortisation
f oreign
July- June 2009/10
Net
Domestic
Financing
PUBLIC DEBT STOCK
22.
Tanzania’s Public Debt Stock as at end of June 2011, stood at TZS 15,537.6 bn
(equivalent to USD 9,737.5 mn) compared to TZS 14,782.0 bn (equivalent to USD
9,816.6 mn) recorded for the quarter ending March 2011. Of this amount TZS
4,729.9 bn was domestic debt and TZS 10,807.7 bn (USD 8711.0 mn) was external
debt. The debt stock displays an increase of 31.8%, equivalent to TZS 3,750.6 bn
relative to the level in the preceding financial year. The increase of debt stock was
attributed to newly contracted domestic and foreign loans for financing various
development projects, accumulation of arrears in the external debt portfolio and
the depreciation of Tanzanian Shillings against the US Dollar.
12
DOMESTIC DEBT
23.
Domestic Debt Stock (including BoT liquidity paper) as of end of June, 2011
stood at TZS 4,729.9 bn out of which Central Government Securities amounted to
TZS 3,726.1 bn while Other Public Sector Debt was TZS 1,003.8 bn. The domestic
debt stock increased by 5.2% percent equivalent to TZS 233.4 bn from TZS 4,496.5
bn recorded at the end of March, 2011. On year to year basis, the total domestic
debt increased by 17.1% from TZS 4,038.2 bn in the quarter ending June 2010 to
TZS 4,729.9 bn in the quarter ending June 2011. The increase was due to issuance
of Treasury bills and bonds for budget financing and conversion of liquidity paper
into financing paper. Despite the increase, the share of domestic debt in total
public debt on yearly basis fell from 34.2% to 30.4% by the end of June 2011.
Domestic Debt Stock by Instrument Category
24.
By the end of June 2011, most of the public domestic debt (78.8%) was still
held in government securities. And, the profile of domestic debt by instrument
indicates that as at end of June, 2011 treasury bonds ranked the highest,
accounting for 55.9 percent of the total debt followed by treasury bills (including
BOT liquidity paper) which accounted for 15.7 percent while special bonds and
government stocks accounted for 28.4 percent. The greater share of Treasury
bonds tallies the National Debt Strategy of borrowing from long term instruments
for financing development projects.
Domestic Debt by Holder Category
25.
The analysis of
Government securities (excluding BoT liquidity paper) by
holder category shows that Commercial Banks/Non Bank Financial institutions are
the leading creditors, holding 49 percent of the total, followed by Bank of Tanzania
27 percent , the institutional investors (pensions funds and insurance companies) 23
percent , and Individuals and other entities 1 percent. The relatively low investment
risk in government securities and expansion of the banking sector explains the
13
dominance of commercial banks in securities market. To contain the crowding out
effect of Government borrowing, the ceiling of 1 percent of GDP has been set (in
accordance with PSI (Policy Support Instrument) benchmarks) as a maximum
possible amount to be borrowed domestically.
Chart 1 : Domestic Debt by Holder Category
EXTERNAL DEBT STOCK
26.
The total National External Debt Stock as of end of June, 2011 stood at USD
8711.0 mn, of which USD 6773.3 mn was public debt and USD 1,937.7 mn was
private sector debt. Total Public External Debt, stood at USD 6,773.3 mn comprising
of Disbursed Outstanding Debt (DOD) of USD 6,028.5 mn (89 %) and Interest Arrears
of USD 744.8 mn (11%). Total public external debt stock in USD terms decreased by
0.8% to USD 6,773.3mn (TZS 10,807.6 bn) from USD 6830.5.mn (TZS 10,285.4 bn)
recorded at the end of the preceding quarter. However, due to the depreciation
of shilling against US Dollar in the period under review, the Public External Debt as
expressed in domestic currency increased by 5.1%.
14
External Debt by Creditor Category
27.
Concessional multilateral loans have been the major source of external
financing. As a result, the majority of external debt (70 per cent) came from
multilateral sources followed by bilateral debt which accounted for 25 per cent,
whereas commercial and export credits constituted 5 per cent as at end of June
2011. The loans from the International Development Association (IDA) and the
African Development Bank Group (AfDB), which are highly concessional,
dominated the external debt portfolio while other multilateral sources consisting of
the
European
Investment
Bank
(EIB),
International
Fund
for
Agriculture
Development (IFAD), Nordic Development Fund (NDF), OPEC fund and Arab Bank
for Economic Development in Africa (BADEA). The major bilateral creditors were
Japan and Brazil.
Chart
2
: External Debt by Creditor Category
Currency Composition of External Debt
28.
The USD continued to be the leading currency of Tanzanian’s external debt
which indicates that the Government has been borrowing more from IDA which
15
commonly uses SDR (in which USD has a significant share). As shown in Chart 7
below the external debt held in USD accounts for 37 percent of the total external
debt, followed by EURO which holds 26 percent of the total external debt (Chart
7). Given the distribution below, the exchange rate risk of the external debt will
highly be dependent upon USD and EURO currencies movement relative to
Tanzanian shillings.
NON CONCESSIONAL BORROWING
29.
Given the limited capacity of the concessional window and the huge
Government appetite to speed up development spending, the government
began tapping the non –concessional windows from commercial banks. By June
2011, a total of USD 103 million was accessed from HSBC bank for construction of
100MW gas fired plant in Dar es Salaam.
PUBLIC DEBT SERVICE
30.
For the 2010/11, the total debt service was TZS 1,937,1 bn where 88 percent
of total was domestic debt service while the remaining was external. On the other
hand, TZ 418.3 bn was for interest payment while the remaining was for principal
repayment and rollover for the external and domestic debts respectively. In the
fourth quarter the total debt service was TZS 696.0 bn where 76 percent was
domestic debt while the remaining was external debt. The interest payment was 27
percent of the total debt service while principal repayment and rollover summed
up to 74 percent.The amount of external debt service is small despite its majority
share in total debt stock due to the fact that most of external debts are
concessional and some of them are not serviced as a result of prevailing
negotiations on relief.
16
Annex A
Summary of Central Government Operations July 2010 - June 2011
In Billion Shillings
April - June 2011
Budget
Estimate
Estimate
Actual
Percent
of
Estimate
July 2010- June 2011
April Year on
June
year %
2009/10
change
Actual
Estimate
Percent July - June Year on
of
2009/10 year %
Estimate
Actual
change
Actual
Total Domestic Revenue (Inc LGAs Own Source)
6,176.2
1,546.6
1,498.5
97%
1,154.9
30%
6,176.2
5,736.3
93%
4,645.2
23%
Domestic Revenue
6,003.6
1,503.5
1,458.4
97%
1,154.9
26%
6,003.6
5,578.0
93%
4,645.2
20%
1,097.8
4,427.8
20%
Tax Revenue
5,638.6
1,422.8
1,376.8
97%
25%
5,638.6
5,293.3
94%
Taxes on Imports
2,115.3
533.3
516.9
97%
425.3
22%
2,115.3
1,978.7
94%
1670.2
18%
Taxes on Domestic Sales
1,396.6
348.4
283.7
81%
245.1
16%
1,396.6
1,166.3
84%
1032.9
13%
Income Tax
1,702.3
407.7
466.1
114%
348.9
34%
1,702.3
1,719.8
101%
1388.8
24%
Other taxes
620.9
186.4
155.5
83%
121.7
28%
620.9
601.4
97%
499.5
20%
Net refunds
-196.5
-52.9
-45.5
86%
-43.2
5%
-196.5
-173.0
88%
-163.5
6%
365.0
80.7
81.6
101%
57.1
43%
365.0
284.7
78%
217.4
31%
172.6
43.1
40.1
93%
0.0
19.0
172.6
158.3
92%
0.0
0%
10,769.6
2,772.2
2,824.1
102%
2,492.8
13%
10,769.6
9,439.4
88%
8,173.7
15%
6,034.5
1,559.7
1,832.3
117%
1,645.1
11%
6,034.5
5,827.7
97%
4,880.8
19%
2,205.4
516.2
595.7
115%
446.7
33%
2,205.4
2,346.4
106%
1723.4
36%
3,829.0
1,043.5
1,236.6
119%
1,198.4
3%
3,829.0
3,481.3
91%
3,157.4
10%
TRA
126.4
31.6
31.6
100%
31.6
0%
126.4
126.4
100%
126.4
0%
Parastatal wages
461.4
129.0
115.4
89%
98.7
17%
461.4
457.7
99%
349.2
31%
Non tax revenue
LGA Own Source
Total Expenditure
Recurrent expenditure (Excl. CFS)
Wages & salaries(Central & Local Gov't)
Goods and services and Transfers
Retention scheme
134.2
56.8
17.0
30%
16.8
1%
134.2
83.6
62%
67.7
23%
Other goods and services
3,107.1
826.1
1,072.6
130%
1,051.3
2%
3,107.1
2,813.6
91%
2,614.1
8%
Development Expenditure
3,819.1
978.8
708.6
72%
616.2
15%
3,819.1
2,749.0
72%
2,611.3
5%
Local
1366.1
365.6
500.0
137%
379.1
32%
1366.1
984.6
72%
1,004.5
-2%
Foreign
2452.9
613.2
208.6
34%
237.1
-12%
2452.9
1764.5
72%
1,606.8
10%
Interest payment
364.5
116.9
135.2
116%
75.3
80%
364.5
353.4
97%
248.9
Domestic
235.0
73.9
111.9
151%
62.2
80%
235.0
285.5
121%
208.1
42%
37%
Foreign
129.4
43.0
23.3
54%
13.1
78%
129.4
67.9
52%
40.8
66%
CFS (Other)
551.6
116.7
148.0
127%
156.2
-5%
551.6
509.3
92%
432.8
18%
Overall Deficit (before grants)
-4,593.4
-1,225.6
-1,325.6
108%
-1,337.9
-1%
-4,593.4
-3,703.1
81%
-3,528.5
5%
Grants
61%
104.3
103%
2,020.9
1,627.4
81%
1,405.3
16%
631.8
727.0
115%
665.8
9%
-20%
2,020.9
347.3
212.1
Programme
631.8
0.0
55.1
Project
898.8
238.1
65.4
27%
84.8
-23%
898.8
369.7
41%
461.5
Basket grants
221.6
55.4
49.5
89%
19.4
155%
221.6
334.6
151%
258.1
30%
MCA (T) - USA
268.8
53.8
42.1
78%
0.0
268.8
196.1
73%
19.9
884%
-2,572.5
-878.3
-1,113.6
127%
-1,233.6
-2,572.5
-2,075.7
81%
-2,123.2
-2%
0.0
0.0
0.0
0.0
-480.1
-
-436.2
10%
8%
-2,572.5
-2,393.2
-
-1,939.6
23%
Overall Deficit (after grants)
Expenditure Float
Adjustment to cash & other items
0.0
-10%
0.0
0
0.0
367.4
Overall balance
-2,572.5
-878.3
-746.2
85%
-688.6
Financing
2,572.5
878.3
746.2
85%
688.6
8%
2,572.5
2,393.2
93%
1,939.6
23%
1,942.5
619.3
189.2
31%
315.3
-40%
1,942.5
1,148.9
59%
1,379.7
-17%
-69%
Foreign (net)
545.0
Programme loans
189.8
0.0
0.0
218.7
-100%
189.8
173.8
92%
558.3
Project loans
807.6
201.9
38.7
19%
137.7
-72%
807.6
643.4
80%
695.6
-8%
Basket loans
256.2
64.1
12.9
20%
4.6
178%
256.2
220.7
86%
194.1
14%
Non Concessional Loan
731.2
365.6
153.9
42%
0.0
731.2
153.9
Amortization
-42.3
-12.3
-16.3
133%
-45.7
-42.3
-42.9
101%
-68.3
-37%
Domestic (net)
Bank Borrowing /1
Non-Bank Borrowing
Borrowing/Roll over /2,3
-64%
0.0
630.0
259.0
557.0
215%
373.3
49%
630.0
1,244.3
198%
560.0
-15.1
600.0
-83.3
392.2
-471%
294.9
33%
287.7
906.8
315%
584.5
55%
0.0
0.0
164.7
77.6
112%
0.0
337.5
210.4
31%
782.7
720.2
-8.9
-100%
0.0
0.0
-210
9.6589
31%
-470.4
30
-720.2
0
797.6
123.1
275.6
Amortisation of contingent debt
0.0
0.0
0.0
Domestic amortisation/Rollover
Privatisation proceeds
Source: Ministry of Finance
-797.6
30
189.2
30
-275.6
0
224%
-146%
0%
17
-24.8 -1463%
92%
153%
714.3
1%
-9.5
-100%
-714
9.6589
1%
Annex B
Domestic Revenues Performance July 2010 - June 2011
Billion Tshs
April - June, 2011
Budget
Estimates
Revenue
Tax Revenue
Taxes on Imports
Import Duty
Petroleum
Excise
Others
Excise
Value Added Tax (VAT)
Taxes on Domestic Sales
Excise
Value Added Tax (VAT)
Income Tax
PAYE
Corporate and Parastatals
Individuals
Withholding Taxes
Rental Tax
Other Income
Other Taxes
Business Skill Development Levy
Fuel Levy and transit fee
Stamp Duty
Departure Service Charges
Motor vehicle taxes
Gaming Tax
Treasury Voucher Cheque
Livestock Development Levy
Refunds
Refunds - VAT
Refunds - other
Non Tax Revenue
Parastatal Dividends
Treasury
Ministries and Regions
TRA Customs
LGAs Own Sources
Source: Ministry of Finance
Estimates
Actual
Percent of
estimate
6,176.2
5,638.6
2,115.3
493.2
570.8
570.8
1,051.4
52.1
999.3
1,396.6
404.2
992.3
1,702.3
910.7
496.0
58.7
186.6
40.7
9.6
620.9
145.1
292.2
9.0
30.3
96.6
4.0
43.7
0.0
-196.5
-130.1
-66.4
1,546.6
1,422.8
533.3
126.6
149.5
149.5
257.2
7.8
249.3
348.4
101.8
246.6
407.7
227.8
100.7
15.5
51.7
9.9
2.0
186.4
44.8
92.5
2.4
7.9
26.5
0.0
12.3
0.0
-52.9
-36.1
-16.8
1,498.7
1,377.0
516.9
116.8
145.9
145.9
254.2
13.2
241.0
283.7
101.8
181.9
466.1
252.9
144.8
15.3
40.8
9.1
3.2
155.7
32.2
85.7
1.8
5.8
28.0
0.0
1.5
0.7
-45.5
-22.9
-22.6
97%
97%
97%
92%
98%
98%
99%
169%
97%
81%
100%
74%
114%
111%
144%
99%
79%
92%
161%
84%
72%
93%
77%
74%
106%
365.0
36.7
16.7
297.5
14.0
172.6
80.7
6.4
4.2
66.2
3.8
43.1
81.6
15.2
1.5
61.8
3.1
40.1
July - June, 2011
April-June Year on
2009/10 year %
Actual
change
30%
25%
22%
23%
13%
13%
26%
20%
27%
16%
39%
6%
34%
46%
27%
15%
5%
55%
4%
28%
48%
26%
101%
22%
52%
86%
63%
134%
1,154.9
1,097.8
425.3
94.7
129.2
129.2
201.5
11.0
190.4
245.1
73.0
172.1
348.9
173.5
114.4
13.3
38.8
5.9
3.1
121.7
21.8
68.2
0.9
4.8
18.4
0.0
7.2
0.4
-43.2
-25.3
-18.0
101%
238%
34%
93%
83%
93%
57.1
13.6
2.8
38.1
2.5
0.0
43%
11%
-48%
62%
25%
12%
-80%
63%
5%
-9%
26%
Estimates
Actual
Percent of
estimate
6,176.2
5,638.6
2,115.3
493.2
570.8
570.8
1,051.4
52.1
999.3
1,396.6
404.2
992.3
1,702.3
910.7
496.0
58.7
186.6
40.7
9.6
620.9
145.1
292.2
9.0
30.3
96.6
4.0
43.7
0.0
-196.5
-130.1
-66.4
5,736.6
5,293.6
1,978.7
460.0
543.5
543.5
975.2
69.6
905.6
1,166.3
439.0
727.3
1,719.8
928.5
537.6
58.4
146.2
33.0
16.1
601.7
120.0
315.9
6.8
23.3
92.3
0.0
16.1
29.2
-173.0
-102.2
-70.7
93%
94%
94%
93%
95%
95%
93%
134%
91%
84%
109%
73%
101%
102%
108%
99%
78%
81%
167%
97%
83%
108%
76%
77%
96%
0%
37%
365.0
36.7
16.7
297.5
14.0
172.6
284.7
26.2
4.8
231.8
21.9
158.3
July-June
2009/10
Actual
Year on
year %
change
88%
79%
107%
4,661.5
4,427.8
1,670.2
377.0
493.2
493.2
800.0
40.6
759.4
1,032.9
303.9
729.0
1,388.8
744.4
418.3
48.6
136.0
29.0
12.4
499.5
110.2
256.4
6.1
21.1
68.3
0.0
31.0
6.3
-163.5
-98.8
-64.7
23%
20%
18%
22%
10%
10%
22%
72%
19%
13%
44%
0%
24%
25%
29%
20%
7%
14%
30%
20%
9%
23%
11%
10%
35%
-48%
362%
6%
3%
9%
78%
71%
29%
78%
156%
92%
217.4
18.6
10.2
177.8
10.7
16.3
31%
40%
-52%
30%
104%
869%
Annex C
Expenditure by Category July 2010 - June 2011
April - June 2011
Budget
Estimate
Total Expendjture
Recurrent Expendjture (Excl. CFS)
Wages and salaries
Goods, services and transfers
TRA
Fuel Levy
Parastatal wages
Retention scheme
Retrenchment costs
Other goods and services
Transfer to Zanzibar
TANESCO (IPTL)
Treasury Voucher Scheme
Other charges
Development Expenditure
Domestic
Foreign
o/w basket grants
o/w basket loans
o/w MCA (T)- USA
Interest
Domestic
Foreign
CFS others
Source: Ministry of Finance
10,769.6
6,034.5
2,205.4
3,829.0
126.4
292.2
461.4
134.2
3,107.1
37.0
18.0
30.0
3,022.1
Estimate
2,772.2
1,559.7
516.2
1,043.5
31.6
92.5
129.0
56.8
826.1
4.5
4.7
817.0
April-June
Actual
Percent of
2009/10
Expenditure Estimate
Actual
2,824.1
1,832.3
595.7
1,236.6
31.6
85.5
115.4
17.0
1,072.6
4.5
5.5
1,062.6
102%
117%
115%
119%
100%
92%
89%
30%
100%
118%
130%
2,492.8
1,645.1
446.7
1,198.4
31.6
68.2
98.7
16.8
1,051.3
10.5
4.5
7.2
1,029.1
130%
Year on
Year %
Change
Estimate
In Billion Tshs
July - June 2011
July-June Year on
Actual
Percent of
2009/10 Year %
Expenditure Estimate
Actual
Change
13% 10,769.6
11% 6,034.5
33%
2,205.4
3% 3,829.0
0%
126.4
25%
292.2
17%
461.4
1%
134.2
2% 3,107.1
-100%
37.0
0%
30.5
-24%
30.0
3%
3,009.6
9,439.4
5,827.7
2,346.4
3,481.3
126.4
315.9
457.7
93.6
2,803.6
41.6
41.8
31.2
2,689.0
88%
97%
106%
91%
100%
108%
99%
70%
90%
113%
137%
104%
89%
8,173.7
4,880.8
1,723.4
3,157.4
126.4
256.4
349.2
67.7
2,614.1
51.2
16.5
31.0
2,515.3
15%
19%
36%
10%
0%
23%
31%
38%
7%
-19%
153%
1%
7%
3,819.1
1,366.1
2,452.9
221.6
256.2
268.8
978.8
365.6
613.2
55.4
64.1
53.8
708.6
500.0
208.6
49.5
9.3
0.0
72%
137%
34%
89%
14%
0%
616.2
379.1
237.1
19.4
4.6
-
15%
32%
-12%
155%
100%
0%
3,819.1
1,366.1
2,452.9
221.6
256.2
268.8
2,749.0
984.6
1,764.5
334.6
217.1
196.1
72%
72%
72%
151%
85%
73%
2,611.3
1,004.5
1,606.8
258.1
194.1
19.9
5%
-2%
10%
30%
12%
0%
364.5
235.0
129.4
551.6
116.9
73.9
43.0
116.7
135.2
111.9
23.3
148.0
116%
151%
54%
127%
75.3
62.2
13.1
156.2
80%
80%
78%
-5%
364.5
235.0
129.4
551.6
353.4
285.5
67.9
509.3
97%
121%
52%
92%
248.9
208.1
40.8
432.8
42%
37%
66%
18%
Annex D
Foreign Grants and Financing July 2010 - June 2011
Budget
Estimates
Overall deficit before grants
Estimate
April - June 2011
April - June
Percent of
Actual
2009/10
estimate
Actual
Year on
year %
change
Estimate
In Billion TShs
July 2010 - June 2011
July - June
Percent of
Actual
2009/10
estimate
Actual
Year on
year %
change
(4,593.4)
(1,225.3)
(1,325.6)
108.2%
(1,337.9)
-0.9%
(4,593.4)
(3,703.1)
80.6%
(3,512.2)
5.4%
2,020.9
631.8
898.8
221.6
268.8
347.3
0.0
238.1
55.4
53.8
212.1
55.1
65.4
49.5
42.1
61.1%
94.8
0.0
75.4
19.4
0.0
123.7%
2,020.9
631.8
898.8
221.6
268.8
1,627.4
727.0
369.7
334.6
196.1
80.5%
115.1%
41.1%
151.0%
73.0%
1,382.9
665.8
439.1
258.1
19.9
17.7%
9.2%
-15.8%
29.7%
884.0%
Overall deficit after grants
Expenditure Float
Adjustment to Cash
(2,572.5)
0.0
0.0
(878.0)
0.0
0.0
(1,113.6)
0.0
367.4
126.8%
-1,243.1
554.5
-10.4%
(2,075.7)
-480.1
162.6
80.7%
-33.7%
(2,572.5)
0.0
0.0
-2,129.3
(436.2)
625.9
-2.5%
10.1%
-74.0%
Overall Balance
Financing
(2,572.5)
2,572.5
(878.3)
878.3
(746.2)
746.2
85.0%
85.0%
(688.6)
688.6
8.4%
8.4%
(2,542.5)
2,542.5
(2,393.2)
2,393.2
94.1%
94.1%
(1,939.6)
1,939.6
23.4%
23.4%
1,942.5
189.8
807.6
256.2
731.2
-42.3
619.3
0.0
201.9
64.1
365.6
-12.3
189.2
0.0
38.7
12.9
153.9
-16.3
30.5%
315.3
218.7
137.7
4.6
0.0
-45.7
-40.0%
-71.9%
178.1%
1,942.5
189.8
807.6
256.2
731.2
-42.3
1,148.9
173.8
643.4
220.7
153.9
-42.9
59.1%
91.6%
79.7%
86.1%
21.1%
101.5%
1,379.7
558.3
695.6
194.1
0.0
-68.3
-16.7%
-68.9%
-7.5%
13.7%
630.0
600.0
0.0
797.6
0.0
-797.6
30
259.0
-83.3
0.0
123.1
0.0
189.2
30
557.0
557.0
0.0
275.6
0.0
-275.6
0
373.3
294.9
77.6
210.4
-8.9
-210.4
9.6589
49.2%
88.9%
-100.0%
31.0%
-100.0%
31.0%
600.0
287.7
0.0
782.7
0.0
-470.4
0
1,244.3
906.8
337.5
720.2
0.0
-720.2
0
207.4%
315.2%
560.0
584.5
-24.8
714.3
-9.5
-714.3
9.6589
122.2%
55.1%
-1463.4%
0.8%
-100.0%
0.8%
Grants
Programme
Project
Basket Support
MCC(T)- USA
Foreign (net)
Programme (Loans)
Project (Loans)
Basket Support
Non Concessional Loan
Amortisation Foreign (outflow)
Domestic (net)
Bank Borrowing /1
Non-Bank Borrowing
Borrowing/Roll over /2,3
Amortisation of contingent debt
Domestic amortisation/Rollover
Privatisation proceeds
Source: Ministry of Finance
27.5%
89.4%
78.3%
19.2%
20.1%
42.1%
133.3%
215.1%
-668.7%
223.9%
-145.7%
0.0%
-13.2%
154.7%
-64.3%
92.0%
153.1%
-37.2%