The national development agenda for the 2020/21 will focus on funding major strategic projects, with a total of 3.7tri/- allocated for the continued construction of the central Railway to Standard Gauge and development of the Julius Nyerere Hydropower Project.
The government anticipates spending 12.9tri/- on strategic projects up from 12.25tri/- allocated for the same in the current fiscal year.
Unveiling the government's proposed development plan for 2020/21 in Dodoma yesterday, Finance and Planning Minister, Dr. Philip Mpango said the next financial year will see the development budget go up to 12.9tri/- , equivalent to 37 per cent of total national budget.
Dr. Mpango announced that the next development budget will see 10.16tri/- domestically sourced (78.8 per cent) and 2.74tri/- (21.2 per cent) coming from donors.
He outlined four areas of major strategic development projects that a big chunk of development budget would be spent on.
They include industries for economic growth, integrating economic growth and people's development, improving enabling environment for trade and investment as well as strengthening monitoring of implementation of the plan.
In order to improve enabling environment for trade and investment the government will in the next year continue to focus on implementing infrastructure projects such as railways, roads, airports and Julius Nyerere Hydropower Project in Rufiji to produce 2115 MW.
The Minister said the government has allocated 2.1tri/- for the ongoing construction of the Standard Gauge Railway (SGR) while 1.6tri/- will be spent on Julius Nyerere Hydropower project. A total of 6.06tri/- will finance other key projects during the coming financial years, noted Dr. Mpango.
On industries, the Minister explained that the budget will be funding implementation of projects which target to construct industries that will use raw materials from within the country, including agriculture, minerals and natural gas in order to develop a value chain.
Some of the projects are construction of natural gas processing plant, establishing and developing special economic zones and industrial parks, industries for adding value to agricultural produce, livestock and fisheries and minerals.
In order to integrate people and economic development, more focus will be placed on improving availability and accessibility of healthcare services, quality education, skills and clean and safe water.
"With free education already in place, the budget would ensure efficient funding of free education, issuance of loans to higher learning students, improving water services, health education and vocational skills and purchase and supply of medicines, among others," he stated.
Under this category, a total of 2.03tri/- of the development budget will go to finance the implementation of the second term of third phase of Tanzania Social Action Fund (TASAF) from 2020-2023.
Reflecting on the current development budget performance, Dr. Mpango noted that by last January a total of 6.22tri/- was released to finance development projects, the amount which is equivalent to 71.9 per cent of the targeted amount of 8.67tri/- allocated for that purpose during the period.
The government, thus, allocated 12.25tri/- for the 2019/20 development budget, out of which 9.74tri/- from domestic sources and 2.51tri/- from development partners.
According to Dr. Mpango, the Government spent 2.96tri/- on the construction of Standard Gauge Railway (SGR) from Dar es Salaam to Morogoro (300km) and from Morogoro to Makutupora (422km).
"The implementation of the ambitious Julius Nyerere Hydropower Project has been completed by 10.7 per cent and 1.28tri/- has already been spent on the project," he said.
The Government also continued the revival of Air Tanzania Company (ATC L), which involved purchase of 11 new planes, out of which 8 planes, worth 1.27tri/-, have already been received and the Government has made initial payment of 85.7bn/- for another aircraft.
Dr. Mpango, meanwhile, said budget for the next General Election has been taken care of in the proposed development budget estimates.