Posted on June, 21, 2018 at 09:49 am
THE government has been challenged to allocate more funds to agriculture sector so as to attract multiplying effects on other sectors including industries which could in turn create huge employment opportunities to youths.
This was said yesterday at a breakfast meeting that brought together economists, tax experts and bankers in Dar es Salaam.
Organised by Enerst & Young, a global leader in assurance, tax, transactions and advisory, the meeting aimed to discuss on the recent presented 2018/19 budget and whether it meets the demands of the majority.
Various economists welcomed the governments' prioritisation on local content including infrastructure, health and other sectors in the 2018/19 budget, however, such priorities needed to have a multiplying effect to the economy.
"Tanzania has not been performing well in the ease of doing business mainly due to poor infrastructures including internet connections and prioritising that in the budget could bring in positive results," the economist and Head of Department, Research and Consultancy at the Mzumbe University Dar Es Salaam College Campus Prof Honest Ngowi said.
The economist said agriculture, which is the backbone of the country employing the majority of the public, has been growing at the rate of 3.5 per cent which was relatively low.
Commenting on tax reforms in the budget which is aimed at increasing revenue and accelerate growth, the expert said budget touch on tax protectionism was welcomed as long as local industries being protected against imports will be able to compete.
The don hailed the budget for addressing such issues as tax exemption on poultry feeds and other agro-products including on locally produced materials.
"Now, we can see the consistence in addressing agriculture, particularly on livestock. But, we need also to ensure that the Maputo agree industrialisationment on allocating 10 per cent on agriculture is met," he said.
On his part, Felix Mlaki, the Executive Director of Economic and Business Foundation (EBFTZ) and a banker said it was important to look at whether the criteria in the 2018/19 budget has been met where some aspects could be raised.
Mlaki mentioned one aspect as whether the government will meet the revenue collection targets for the 2018/19 budget but also to look at the prices and consumer variations where prices continued to go down even as the consumption of materials was going up.
"Prioritising in railway infrastructure, Stigler's George projects and the purchase of aircraft was good, but such services need to be consumed to create a multiplying effect," he said adding that this is an area of concern because the growth need to be inclusive.
Source: Daily News