OFFICIAL EXPOUNDS ON TANZANIA GOVERNMENT RECURRENT EXPENDITURE

THE Budget Department in the Ministry of Finance has issued a clear-cut clarification on why recurrent expenditure in every fiscal year is higher than funds set for development projects.

The clarification made at the ongoing 38th Dar es Salaam International Trade Fair (DITF) comes amidst outcry from some members of parliament when debating the budget estimates and general public that the decision to allocate more funds on recurrent expenditure than development project was unmerited.

Principal Economist at the Department, Mr Adam Msumule, noted that the outcry was fuelled by inadequate education on budget grounding system and implementation. In 2014/2015 fiscal year which started on Tuesday this week, the government budget stands at 19.6trillion/- whereby 14trilion/- has been allocated for recurrent expenditure while the remaining five trillion directed to development projects.

Mr Msumule pointed out that recurrent expenditure means ongoing expenses of the government, such as salaries, travelling expenses, medical and education services while development projects only included tangible things like construction activities.

"All public servants' salaries, medicines and equipment in hospitals, school material and even higher learning students' fees covered by the government fall under recurrent expenditure," he noted.

Mr Msumule stated that even billions of money the government sets aside every year for Higher Education Students' Loan Board (HESLB) to fund Tanzanian students' studies were include in the recurrent expenditure category. He maintained that even funds for government's debt clearance fall under recurrent expenditure.

"When we repay money we borrowed for development projects, the fund falls under recurrent expenditure. In this case should understand what actually the words mean," he added.

Mr Msumule with deep concerns said that Swahili translation of the recurrent expenditure "matumizi ya kawaida" was what has been misleading people and making them believe that such expenses were worthless.

He noted that it was high time the public misguided mindset that these "matumizi ya kawaida" were only for tea and bites and other unnecessary spending was changed. He noted that it was impossible for the country to attain economic development without borrowing either locally or from outside the country.