ZANZIBAR national budget is set to increase by 200bn/- during the next financial year, the Minister for Finance and Planning, Dr Khalid Salum Mohamed, has disclosed.
Moving his ministry’s budget estimates, Dr Mohamed informed the House that the government projects to collect revenue amounting to 1.28trl in the coming financial year from the previous year’s 1.08trl/-.
He said revenues from tax are expected to increase by 16 per cent, from the previous 627.01bn/- to 728.35bn/- during the 2018/19 financial year, while non-tax revenue is set to rise from 22.42bn/- to 42.03—a 87 per cent.
To realise the projections, Zanzibar Revenue Board (ZRB) has been tasked to collect 405.36bn/- while Tanzania Revenue Authority (TRA, Zanzibar branch) are required to contribute 301.10bn/-, meaning that 55 per cent of the budget estimates is expected to come from tax.
Loans and grants from development partners will account for 36.5 per cent of the budget—467bn/-, the minister revealed, while loans from domestic financial institutions are estimated at 40bn/-.
“Also, the ministry has been given the target to collect 42.03bn/- as non tax revenues,” Dr Mohamed told the House.
According to the minister 21bn/- will come from PAYE from employees of Union institutions working in Zanzibar.
The ministry plans to implement eight projects during the next financial year and Dr Mohamed named the projects and the amount allocated for each project in brackets as; construction of government offices (15bn/-), improving social services (52bn/-), and enhancing the availability of financial resources (1bn/-).
Other projects include; enhancing good governance (ISPGG III, 6.85bn/-), improvement of domestic resources and natural resources management (4.18bn/), a programme to support non-government organisations (273.26m/-), strengthening of sustainable development (273.29bn/-), and the development of Mangapwani Port (4.2bn/-).
The House approved the 1.28trl/- revenue projections as well as 295.62bn/- budget estimates for the finance and planning ministry for the coming fiscal year.
The budget of the revolutionary government of Zanzibar will be tabled on June 20, 2018.