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Proper budgetary control vital
2008-09-10 09:41:50
By Editor
A study whose findings were released recently indicates that out of the estimated 40,000 fleet of government vehicles, about half are luxury cars in the make of Toyota VX and GX.
It has also been revealed that besides being expensive to maintain at a cost of shillings 10 billion per annum, they are also replaced every two years.
This constitutes burdensome expenditure in the current accounts of government ministries, departments and Agencies.
The argument given for preference of these vehicles is that despite the heavy cost of buying and maintenance, they are most suitable for the country’s rough road terrain.
These vehicles are used by ministry, regional and district authorities to reach the majority of the people in the rural areas as leaders inspect development projects.
However, cheaper vehicles, whose cost of maintenance and spares is lower, could be used to achieve the same goals at lower cost and greater efficiency.
For example, Land Rovers and cheaper versions of Toyota four wheel vehicles.
Tanzania is operating with a shoe string budget as it is becoming more evident that development aid is becoming less predictable and its disbursement is slow.
There are many conditionalities to be met, including the logical conclusion of the EPA financial misappropriation.
Donor dependence for the Budget has stood at 42 per cent of the total budget while 20 per cent of funds go to the development budget and 80 per cent for recurrent expenditure.
The only way Tanzania can attain self sufficiency or less dependence on donors is prudent expenditure of domestic revenue as the tax base expands due to formalisation of the parallel economy and reduction of tax exemptions and evasion.
The less conspicuous consumption there is in management of recurrent budget, there will be more funds to reallocate to the development budget.
To attain the millennium development goals and those of Mkukuta, there is a need to reallocate more funds to education, infrastructure, health services water supply and other sectors that contribute to poverty reduction.
This will be attained by proper management of the recurrent budget by reducing expenditure on 4WDs and luxury vehicles, many seminars and conferences and official visits which, are in some cases, unplanned and their expected outcomes are not even clear.
It is gratifying to hear that at least there is now a plan to phase out the luxury vehicles and reduce the number of conferences, seminars and workshops.
In 2008/9 Budget, it was targeted to have donor dependence reduced to 34 per cent.
We have to adhere to the cash budgeting system in order to control unnecessary expenditure and spend only what we collect from taxes, that is, living within our means.
There are politicians who have advocated the establishment of Tanzania Expenditure Authority as a counterpart of TRA.
This would both be duplication and an expensive exercise because the office of the controller and Auditor General is already doing a good job.
What needs to be done for proper management expenditure is political will to implement the recommendations of CAG reports.
Most of the ministries have a bigger allocation for recurrent rather than development expenditure.
This means the government is investing more in consumption than future production of economic and social public goods and services.
The trend should be reversed so that the development funds can help attain the Vision 2025 goals, with support from development partners being complementary.
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