- Published on Friday, 10 August 2012 03:45
- Written by SEBASTIAN MRINDOKO
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REVENUE collection excluding Local Government Authorities (LGAs) own sources was 887.5bn/-, 38.1 per cent higher than the target for June this year, largely due to a number of measures adopted by the Tanzania Revenue Authority (TRA).
The Bank of Tanzania (BoT) monthly economic review for the year ending June show that tax revenue amounted to 753.3bn/-, 22.3 per cent higher than the target.
"The good performance was on account of the administrative measures adopted by TRA which include effective implementation of block management activities," stated the report. Also, intensified tax audits, recoveries of tax arrears and implementation of electronic fiscal device (EFD) enforcement programmes contributed significantly to the outstanding performance of revenue collection.
Non-tax revenue was 97.2 per cent of the target for the period. Domestic revenue excluding LGAs own sources was 17.9 per cent of Gross Domestic Product (GDP) compared to the target of 17.2 per cent for the year 2011/12.
Similarly, grants amounted to 1,619.4bn/-, compared to the projected amount of 2,717.9bn/-. In 2011/12, domestic revenue excluding LGAs own sources was 7,056.6bn/-, 4.1 per cent higher than the target for the year. Tax revenue was 4.8 per cent higher than the target and accounted for 98 per cent of total domestic revenue.
During June 2012, total expenditure was 1,911.8bn/-, comprising of recurrent expenditure 1,248.7bn/- and development expenditure 663.1bn/-. The cumulative expenditure for 2011/12 amounted to 10,279.9bn/- or 81.3 per cent of the estimate. Out of the total, recurrent expenditure was 6,929.6bn/- and development expenditure 3,350.3bn/-, equivalent to 89.8 per cent and 68.0 per cent of the period estimates, respectively.
The government budgetary operation for 2011/12 resulted in an overall deficit of 1,796.9bn/-. This was financed by net foreign loans of 1,471.3bn/- and a net domestic borrowing of 325.6bn/-.
During June 2012, total resources, on cheques issued basis, amounted to 998bn/- while total expenditure was 1,911.8bn/-, resulting in an overall budget deficit after grants of 400.2bn/-. The deficit was financed through both domestic and foreign sources.