2010/11 national budget

The Tanzanian national governmnent was projected to collect U.S.$3.13 billion (based on an exchange rate of 1,500 Tanzanian shillings per U.S. dollar) in revenues during the 2009/10 fiscal year. (Tanzania's fiscal year begins on July 1.) That is U.S.$270 million below the amount budgeted, which was U.S.$3.40 billion. Despite this shortfall, the government is budgeting revenue collections of U.S.$4.00 billion during the 2010/11 fiscal year. Just how realistic is this 17.6 percent increase? Not very. During the first three months of the 2010/11 fiscal year, the government has missed its revenue collection target by a whopping 18 percent. Worse, international donors to the government have cut and delayed their donations.

Tanzania experienced gross domestic product (GDP) growth of 6 percent in 2009, after accounting for inflation ("real" growth). GDP in 2010 is projected to be U.S.$20.8 billion, compared to U.S.$1.14 trillion in Texas alone in 2009. The 2010/11 budget assumes a real GDP growth rate of 7 percent per year. Per capita income in 2009 was U.S.$419 per year, a 10 percent real increase over 2008.

Budgeted revenues for 2010/11 (in billions of U.S.$):
National government collections...................................... 4.00
Donations............................................................................. 2.18
Borrowing............................................................................ 1.42
Local government collections........................................... 0.10
Privatization proceeds...................................................... 0.02
.....Total revenues.............................................................. 7.72

Expenditures
Total revenues are budgeted for expenditure in the following key areas:
Education................................................................. 18%
Infrastructure......................................................... 13%
Health....................................................................... 10%
Agriculture............................................................... 8%
Water........................................................................ 3%
Energy and minerals.............................................. 3%

For more information, refer to:

"Crossroads of Change: Budget 2010/2011," PriceWaterhouseCoopers, http://www.scribd.com/doc/33045925/Budget-2010-2011-Summary

"Government Meets Donors as Budget Deficit Widens," The Citizen, Dar es Salaam, 6 December 2010, http://allafrica.com/stories/201012060587.html

"Gross Domestic Product by State," Bureau of Economic Analysis, http://www.bea.gov/regional/gsp/action.cfm