Tanzania’s economy will grow by 7.2 per cent as efforts are made to implement a raft of measures to contain inflation in 2016, the government said on Wednesday.
Presenting a statement on the State of the National Economy in the National Assembly, Finance and Planning minister Dr Mpango said the inflation rate, at 5.1 per cent in April this year, will be contained to anything between five and eight per cent.
Domestic revenue collections will reach 16.9 per cent of the country’s gross domestic product (GDP) during the 2016/2017 financial year as opposed to 14.8 per cent of the same during the 2015/2016 period.
The government will also seek to garner enough revenues with a goal of recording a budget to GDP ratio of 4.5 per cent, up from 4.2 per cent during the 2015/2016 financial year, while foreign reserves are earmarked to remain above four months of the import cover.
With increased revenue collections, Dr Mpango said the government would inject Sh11.8 trillion – equivalent to 40 per cent of the 2016/2017 total budget – on development expenditure as it seeks to hasten economic growth to meet a target of Tanzania becoming a middle income country (with a per capita GDP of $3,000 come the year 2025) from the current $967.
Dr Mpango told the august House the government would revive local industries, including General Tyre Factory in Arusha during the 2016/2017 financial year.
Various schools, colleges, universities and health facilities are also set for major facelift while specific measures will be directed towards improving the business climate.
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