Prime Minister Kassim Majaliwa issued the warning in Dodoma yesterday at a three-day annual meeting of the Association of Local Authorities of Tanzania (ALAT).
“The country’s development is pegged on the performance of local authorities. There is a direct relationship between the quality of services offered to the people and the amount of revenue collected,” Majaliwa observed.
“Every district authority has the obligation to increase efficiency, fight corruption and strengthen its local tax regime. Those incapable of meeting the targets set put their legitimacy in danger and therefore risk revocation,” he insisted.
As for sensible spending of revenue collected, the prime minister reminded ALAT members to avoid irresponsible expenditure in order to ensure timely financing of social services and community projects.
The ongoing war against corruption in all its facets, he added, became necessary in order to ensure that the national cake was shared equitably, adding that President John Magufuli had set the pace and showed the way which all public workers should follow.
The collection of revenue through effective use of electronic fiscal devices featured high in the prime minister’s speech, insisting that the government would use local institutions to raise income to finance development projects.
The premier said that effective revenue collection and its provident expenditure gained impetus when district and regional commissioners worked closely with local authorities to find lasting solutions to challenges facing the community.
“For example, cases of land disputes have been reported in different parts of the country between livestock keepers and farmers or between villagers and conservation areas.
Land use planning can be achieved through land survey with established boundaries. This can be achieved through collective efforts. Farmers, for instance, need basic implements like tractors. These should be provided at the right time,” Majaliwa advised.
Commenting on some people who commented adversely on the performance of past administrations, Majaliwa said it was not proper as all government phases contributed to the country’s stability.
Outlining budget plans for fiscal year 2016/17 recently, Finance and Planning Minister Philip Mpango said the country planned to lift spending on industrial and infrastructure projects but wanted to cut budget deficit.
Economic growth is expected to rise to 7.2 per cent in 2016, from 7.0 per cent in 2015. The document is the first indication of expenditure plans under President John Magufuli, with a clear focus on job creation.
According to the budget overview, spending would rise to 22.99 trillion shillings ($10.6 billion) in 2016/17 from 22.49 trillion shillings, but deficit would shrink to equivalent of less than 3 per cent of the gross domestic product, from 4.2 per cent in the previous year.
The Finance minister said the government would borrow an equivalent of 1.78 trillion shillings, now worth roughly $817 million, from external commercial sources during financial year 2016/17.
Mpango said the government would hike government revenue collection and garner savings through some austerity measures.
Magufuli began his presidency with a series of high-profile moves to slash wasteful government spending, such as scrapping official functions and reining in corruption. Mpango said the goal in the medium term was to attain 8 per cent economic growth.
Financial aid and loans from development partners were expected to fall by 9.3 per cent to 2.1 trillion shillings in 2016/17, Mpango said.
Inflation was expected to remain at single digit and fall to 6.0 per cent by June 2016, and stay between 5 and 8 per cent in the medium term, the minister’s guideline document said. Year-on-year inflation edged up to 6.8 per cent in December.
Spending would focus on industrial projects and new infrastructure to improve poor roads and power shortfall, and embark on a project to export gas.
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