Posted on June, 16, 2021 at 07:58 am
T ANZANIA joined her counterparts in the East African block in tabling its estimates on the financial budget for the year 2021/2022 on the tenth of June last week in Dodoma.
It should come into notice that this budget comes after a very shocking year that was largely embroiled by the COVID-19 pandemic in which the first case was reported. Thus most of the regional budgets centred on responding to the effects of the most devastating pandemic in the history of mankind, in this case setting aside enough resources for the health sector.
Whereas Tanzania's budget took this health issue into consideration - which included buying of vaccines - it largely tried to repair some devastated sectors like tourism. While Tanzania did set aside 228.9 billion Shillings for the agricultural sector, Kenya managed to allocate more than 1.2 trillion Shillings for the most important sector - nearly five times more than Tanzania which is the regional food basket.
Tanzanian agriculture budget didn't have to wrestle with the effects of locusts that swarmed the horn of East Africa as much of them were either contained too early or did find the country less habitable. This relief meant no single dime would be wasted fighting for a natural disaster and instead allocates the scarce resources to areas of development.
So the revenue and expenditure estimates managed to score some good credits that augur well with several subsectors in the country, namely; horticulture and livestock. Not only the budget did what everyone would wish to see, earn more and pays less, but it also tried to sow some seeds that will help lower costs of doing business in the sector which is the essence of Tanzania's blueprint document.
The budget promised to exempt VAT on cold rooms. This move intended to reduce production costs and promote modern horticulture farming in Tanzania. While Tanzania experienced few effects of the pandemic compared to other countries in the region, most of the sectors that were closely connected to the rest of the world were badly hit and horticulture was not an exception.
Another score that this year's budget registered was exempting VAT on cans intended for preserving milk. A goal behind this move is to try reducing production costs and promote a modern dairy milk industry that is less appreciated in its ability to create employment for youth in the country.
The greatest gain that the sector managed to register from this year's budget is the exemption of VAT on the insurance of livestock farming. Upon full implementation, the measure will help promote livestock farming which will be a plus to farmers who are largely regarded as "the axis of unloved". It should be put on record that last year's budget came up with a similar move on crop insurance.
The lowest point of this budget is its silence on how it would have responded to farmers who used to supply food to hotels and other recreational areas whose good number of clients are foreign tourists. Areas like Zanzibar and Arusha were turned "ghost cities" last year after their most treasured spenders didn't show up due to Coronavirus.
To remain silent is to create a sense of insecurity to them, an atmosphere that is unhealthy at best and unsustainable at worst. Interventions of this nature tend to assure players that safety nets are always there in times of distress as long as they will keep on doing their risky venture.
Another low point is its relatively little allocation of budget to the sector. Much as it was discussed the other week, it is pretty important to put into remembrance that our budget stood out as the lowest when put in comparison with other neighbouring countries like Kenya and Uganda whose agriculture budget share was 1.6 and 1.1 per cent respectively.
There is always a great relationship between budget allocation to the sector and its performance, since any commercial agriculture that gears at transforming its practice it must indeed be ready and that is what the whole public spending is all about.
To sum up, the general budget like any estimate is a document of aspirations and plans, results proclaimed in it depends on how will be implemented by those in the value chain.
Source: Daily News