THERE is no doubt a new Tanzania is on the cards. Judging from the dedication proved by President John Magufuli in controlling government spending, the pace of development is guaranteed to the convenience of the majority.
During inauguration of the 11th Parliament, the powerful speech by the president showed clearly the roadmap this nation should follow to achieve what is anticipated by the larger section of the society.
Perhaps the long unresolved puzzle of poverty irrespective of the abundance of resources Tanzania is endowed with, will be answered through proper management of the available resources in addition to serious engagement to productive activities by all able-bodied persons under the President’s motto ‘Hapa Kazi Tu’.
The President ordered restrictions on foreign travel by government officials recently and cuts in tax exemptions, signaling the potential start of fiscal belt-tightening measures by his government.
Some public officials have a reputation for making frequent foreign trips and for flying in first or business class at taxpayers' expense in a country that is one of the biggest per-capita aid recipients in Africa.
He announced the ban in a meeting with Permanent Secretaries, Deputy Permanent Secretaries, the Governor of the Bank of Tanzania (BoT), Prof Benno Ndulu and the Commissioner General of the Tanzania Revenue Authority (TRA), Mr Rished Bade, at State House in Dar es Salaam. Dr Magufuli ordered that all tasks that necessitated government official to travel abroad will now be done by the country's High Commissioners and Ambassadors abroad.
"Unless there is an urgent undertaking abroad one could be allowed to travel after getting permission from the President or the Chief Secretary," stated, the statement signed by Assistant Press Secretary to the President, Ms Premi Kibanga. Instead, he directed senior government officials to make regular visits to rural areas to learn and help solve problems facing wananchi.
The ban on foreign travels has come against the backdrop of reports that the government mid this year raised civil servants' travel allowances by 50 per cent. The raise rekindled the debate on unnecessary travel by government employees and payment of trillions of shillings in allowances every year. About Sh3.2 trillion was expected to be dished out as allowances in 2015/2016, equivalent to about half of the government's wage bill.
"In this government taxes should be paid accordingly and the only person to make decisions on tax exemptions is the Vice-President and I," the statement quoted the President as saying.
Tanzania has one of the biggest tax exemption rates in the region with the relief amounting to 4.3 per cent of the Gross Domestic Product (GDP), by 2012. Economists observed that the shilling is set to gain following President John Magufuli’s restriction on foreign travel for government officers, as it will curb rising demand for US dollars that has contributed to weakening of the local currency.
The Confederation of Tanzania Industries (CTI)’s Director of Policy and Advocacy, Mr Hussein Kamote says expeditions to foreign countries, particularly by government officials, are among factors that have been draining foreign currencies at the expense of the shilling. Apart from curtailing ballooning public debt, the restrictions will limit excessive demand for the US dollar that has been leading to the free fall of the shilling.
“The implementation of government measures on foreign trips on its public servants as well as minimal use of dollars on import of goods that can be made available locally will boost the value of the shilling,” Mr Kamote noted. Mr Kamote said there should be deliberate measures to restrict dollar demand for procuring goods and services, which are necessary to the economy, reduce or halt completely unnecessary expenditures.
For example, he said, there are services in some private and public sectors that are unnecessarily quoted in dollars, eventually exerting pressure into the shilling fall. This may fuel up inflation due to increased prices of goods and services.
The shilling has lost over 20 per cent of its value against the US dollar since January, this year, where according to the Bank of Tanzania (BoT), it traded at 1714/1731 against 2147/2168. A senior lecturer at the University of Dar es Salaam (UDSM), Prof Humphrey Moshi, echoed Mr Kamote’s sentiments, stressing that the ban on foreign travel will reduce appetite for foreign currency.
“The move by Dr Magufuli will have a positive impact on the economy and help strengthen the local currency,” Prof Moshi told this newspaper in a telephone interview. The views were shared by Dr Honest Ngowi of Mzumbe University who was, however, of the view that the restrictions will have little impact on stabilising the shilling.
“Expenditures on foreign travels constitute a small component of foreign currency used in this country and thus I don’t expect it to have a significant impact on stabilising the currency,” the renowned economist remarked.
Last week, the Ministry of Foreign Affairs and International Cooperation started implementing the decree issued by President, John Magufuli banning all foreign travels by issuing specific instructions to its Embassies abroad.
The ministry ordered all Embassies around the world to get organised in order to participate fully in representing the government in all zonal and international meetings that will be taking place in the countries that they represent.
According to the ministry’s statement, Tanzania has 35 Embassies; Three Consulates; Two business centres and 17 honorary Consuls in different countries. It also stated that all these offices will be involved in forging ahead the country’s economic diplomacy and representing the nation’s interests abroad. Until now the conferences that have already taken place and that the country’s Embassies have represented includes the Commonwealth Heads of Government Meeting (CHOGM), which is taking place in Malta and the Ministerial meeting that is addressing media issues in Southern African Development Community (SADC), taking place in Lesotho.
The ministry has urged ministries, departments and government institutions to communicate well in advance information regarding conferences relating to their sectors. “This will allow the Ministry of Foreign Affairs and International Cooperation to work on them in time to ensure the country’s participation bears fruits to the nation,” the statement noted.
In his speech at the House, President Magufuli said for the past financial year, the government spent more than 350bn/- (about 170 million US dollars) for air tickets, training conducted abroad and per diems. Magufuli, whose supporters call him 'the bulldozer' for building desperately needed roads across the large nation in his previous post as a Cabinet Minister, has pledged to introduce raft of measures to end government excesses and boost revenue collection.
Apart from foreign trips ban, the president outlined number of issues where he said needs proper plans of execution and proper supervision from his expected Cabinet. He tasked the top government executives to move to work on the basis of his campaign motto, 'Hapa Kazi Tu,' saying they should keep in mind promises he made to the people in the campaign.
He outlined several areas which he directed the top executives especially those tasked with finance and budgeting supervision to make proper plans for promises that he made during the campaigns to start being implemented immediately as he picks his Cabinet of Ministers.
http://www.dailynews.co.tz/index.php/features/44663-in-support-of-ban-on-unnecessary-govt-spending
