THE government has presented in the National Assembly the second Five
Year Development Plan (FYDP) that will need 107 trillion/- for its
implementation. Presenting the plan yesterday, the Minister for Finance
and Planning, Dr Philip Mpango, said the FYDP 2016/17-2020/21 aims at
boosting industrialisation for economic development.
He said the industrialisation would help
the country attain its goal of becoming a middle-income country. The
minister told the House that 107 trillion/- is needed for implementation
of development projects in the next five years, which is equivalent to a
percentage of 21.4 per year.
The government will be required to
collect 59 tri/-, which is equivalent to 11.8tri/- every year. This
means, more funds are required compared to the first Five Year
Development Plan (FYDP 2011/2012-2015/2016), which is expected to be
accomplished in June.
“The funds for implementation of the
plan will be obtained from two key areas namely internal revenue
collection through tax and non-tax revenue and loans and grants from
outside the country,’’ said the minister.
Dr Mpango outlined some of the grand
projects to be implemented in the plan as coal in Mchuchuma coal and
iron ore in Liganga, Special investment areas, Kurasini Centre for
Services and Business and Construction of Standard Gauge Central Railway
and its branches.
The four key priority areas in the
Second National Development Plan, according to the Finance and Planning
Ministry are Economic Growth and Establishment of Industrial Economy,
Combining Economic and Human Development, Creating Enabling Environment
for Business Environment and Investment as well as Strengthening
Supervision during the Implementation of the plan.
If endorsed by lawmakers today, the
implementation of the plan will kick off in July 2016. The FYDP
2011/2012-2015/2016 ends this June. However, the first plan, according
to Dr Mpango, failed to hit the target in many areas although there is
positive growth in many sectors.
The failure is attributed to significant
financing gap as a result of inadequacy in public funds and inertial in
the operationalisation of the public-private partnership (PPP) policy.
Yesterday, Dr Mpango told Parliament
that by June, this year, implementation of the first five-year plan
would have reached 60 per cent. Delivering views of the official
opposition in the National Assembly, Shadow Deputy Minister for Finance
and Planning, Mr David Silinde, expressed the opposition’s dismay over
the ballooning National Debt calling for a special audit. He said the
debt stood at 41.5tri/-.
“The official opposition in Parliament
wants the Controller and Auditor General (CAG) to do a special audit on
the National Debt and submit the report in Parliament for debate,’’ he
said.
But the Chairperson of the Parliamentary
Budget Committee, Ms Hawa Ghasia, told the National Assembly yesterday
that the current National Debt stood at 36.4tri/-, which economic gurus
say is still manageable.
“We understand that there cannot be
development without borrowing but the committee advises that any
borrowing should be channelled to development,’’ she said.
Debating the plan, Vwawa MP Japhet
Hasunga (CCM) commended the Fifth Phase Government’s plan to revamp the
Air Tanzania Company Limited (ATCL), saying the initiatives should be
supported. “I believe the planes that are scheduled to be purchased will
help to revive the national airline company,” he added.
Mr Hasunga further gave kudos to the
government’s decision to provide free education from primary school to
form four in the new plan. However, the lawmaker insisted that there was
a need to review the curriculum to ensure that the quality of education
was proper.
Liwale MP Zuberi Kuchauka (CUF)
expressed his disappointment over lack of health centres in every ward
and absence of dispensaries in every village as explained in the
country’s national policy.
He insisted that in implementing the
scheduled plan, the government should seek a solution for that. Manyoni
West Lawmaker Yahaya Massare (CCM) commended the plan presented by the
minister, saying it was good for the country’s development.
He was quick, however, to point out that
his constituency was hardly hit by shortage of water, calling for
immediate government intervention.
