Govt targets to spur microeconomic growth

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Govt targets to spur microeconomic growth
Govt targets to spur microeconomic growth

Africa-PressTanzania. MINISTER for Finance and Planning, Dr Mwigulu Nchemba on Thursday revealed that the government is targeting to improve microeconomics, which in turn will help to accelerate the real Gross Domestic Product (GDP) growth rate to 5.6 per cent in 2021.

Presenting the National Development Plan in Parliament, Dr Nchemba mentioned other targets to maintain the inflation rate at single digit ranging between 3.0 to 5.0 per cent in the medium term.

The government also targets domestic revenue, including Local Government revenue to be 15.9 per cent of GDP in 2021/22 and an average of 16.3 per cent of GDP by 2023/24. Moreover, he said, tax revenue ought to reach 13.5 per cent of GDP in 2021/22 from the projected 12.9 per cent in 2020/21.

The Minister said they also want to ensure the budget deficit does not exceed three per cent of GDP in line with the threshold set by East African Community Member States and maintain foreign exchange reserves at levels sufficient to cover four months of imports. Dr Nchemba said the National Development Plan 2021/22 is the first Annual Plan in the implementation of the Third National Five-Year Development Plan 2021/22 – 2025/26 (FYDP III) with a theme

“Realising Competitiveness and Industrialisation for Human Development”. He said the plan will continue to implement programmes and projects whose execution were not completed during the implementation of the Second National Five -Year Development Plan 2016/17 – 2020/21.

He said the priority projects for 2021/22 reflect the five priority areas of FYDP III, which are: Realizing an Inclusive and Competitive Economy, Deepening Industrialization and service provision, Investment and Trade Promotion, Human Development and Skills Development.

The priority projects for the year 2021/22 is part of the implementation of the flagship projects, which include construction of the central railway line to standard gauge by continuing with construction of Morogoro – Makutupora (km 422) and Mwanza – Isaka (km 341) sections and Julius Nyerere Hydro-Power Project – 2115 MW. Others are reviving of Air Tanzania Company Limited (ATCL), the East African Crude Oil Pipeline (EACOP) from Hoima (Uganda) to Tanga (Tanzania), Construction of Liquefied Natural Gas Plant (LNG) – Lindi, Soda Ash – Engaruka Basin, Coal – Mchuchuma and Iron Ore – Liganga.

Also in the list include Ruhudji (MW 358) and Rumakali (MW 222) Hydro-Power – Njombe; Construction of bridges and flyovers of Kigongo – Busisi (Mwanza), Tanzanite and Kamata Interchange (Dar es Salaam), Construction of fishing Port (Mbegani) and procurement of fishing vessels, Kulazi Sugar Factory, Exploration of oil and gas at Eyasi Wembere and Mnazi Bay North.

“Special Economic Zones, mass training of young Tanzanians in specialised skills for industrial development and social wellbeing area also among the priorities” said the Minister.

In promoting a competitive and inclusive economy, Dr Nchemba said the priority will be given to the development of railways, roads, bridges, marine and air transport, energy, ports, airports and accelarating implementation of Blueprint’s Action Plan to improve business and investment environment.

The following projects will be implemented: Infrastructural development caters for a number of avenues including rehabilitation of workshops and buildings, procurement and rehabilitation of locomotive and passenger wagons, rehabilitation of railway signalling and communication system; and demarcation of railway owned areas.

Moreover, the government will continue with the construction and rehabilitation of Dar es Salaam decongestion roads (138.5 km) and regional roads, improvement of Bus Rapid Transport (BRT) infrastructure, construction of flyovers in Dar es Salaam, Dodoma ring roads, rural and urban roads. Furthermore, the government will continue with the improvement of airports including Songwe International Airport, Regional airports and construction of Msalato, Kigoma, Sumbawanga, Tabora and Shinyanga airports.

The Information Communication Techology (ICT) revolution is another area which seeks to strengthen the sub sector by extending the National Information Communication Technology Broadband Backbone. Government will strengthen management and operations of Public Corporations in order to ensure efficiency in production and service delivery.

The aim is to ensure profitability and provision of equitable dividend to improve services provision to the public. In promoting investment and trade, the government will implement various programs and projects that will strengthen local markets and access to regional and international markets. In addition, he said, the government will continue with the implementation of Blueprint for Regulatory Reforms to improve business environment to attract private sector investment.

On human development, Dr Nchemba said they will ensure inclusive economic growth as well as continue to improve welfare by enhancing access to social services including education and trainings, health and social welfare, social protection, water and sanitation services.

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