The government's financial performance in October 2023, comparing actual operations with the budget estimates for the year:

Government Expenditure:

• There was a significant increase in Development Expenditure, surpassing the budget estimate by 74%. This suggests a higher-than-expected investment in development projects.
• Other Recurrent Expenditure experienced a substantial decrease of 61% compared to the budget estimate, indicating potential cost savings or underspending in certain areas.
• While Interest Costs increased by 43%, the Wages and Salaries category decreased by 12% compared to the budget estimate.

Government Revenues:

• Taxes on Imports and Tax on Local Goods and Services exceeded their budget estimates by 14% and 2%, respectively.
• Income Tax and Other Tax fell short of the budget estimates by 19% and 5%, respectively.
• Non-Tax Revenues experienced a significant decrease of 33% compared to the budget estimate.

Deficit:

• The budget deficit widened substantially, increasing by 84%. This indicates that government expenditures exceeded revenues by a larger margin than initially projected.

Overall Implications:

• The government's increased focus on development projects could stimulate economic growth, but the widening budget deficit raises concerns about fiscal sustainability.
• The substantial decrease in Other Recurrent Expenditure may be intentional cost-cutting measures or a result of underspending, warranting a closer look at the allocation of resources.
• Shortfalls in Income Tax and Other Tax revenues might be attributed to economic factors affecting income and business activities.
• The decrease in Non-Tax Revenues may require attention to alternative revenue sources or a review of existing non-tax revenue-generating mechanisms.

The Government Budget Performance Evaluation for October 2023, comparing actual operations with the budget estimates for the fiscal year 2023. The insight includes details on government expenditure, government revenues, and the resulting budget deficit, along with the percentage change between the actual and estimated figures.

Government Expenditure:

Wages and Salaries:

• Actual (2022): TZS745.6 million
• Budget Estimated (2023): TZS935.9 million
• Actual Operations (2023): TZS825.4 million
• Percentage Change Between Actual and Estimated: -12%

Interest Costs:

• Actual (2022): TZS280.4 million
• Budget Estimated (2023): TZS311.8 million
• Actual Operations (2023): TZS445.1 million
• Percentage Change Between Actual and Estimated: 43%

Development Expenditure:

• Actual (2022): TZS1,105.2 million
• Budget Estimated (2023): TZS1,237.3 million
• Actual Operations (2023): TZS2,158.7 million
• Percentage Change Between Actual and Estimated: 74%

Other Recurrent Expenditure:

• Actual (2022): TZS346.5 million
• Budget Estimated (2023): TZS758 million
• Actual Operations (2023): TZS294.4 million
• Percentage Change Between Actual and Estimated: -61%

Total Government Expenditure:

• Actual (2022): TZS2,478 million
• Budget Estimated (2023): TZS3,243 million
• Actual Operations (2023): TZS3,724 million
• Percentage Change Between Actual and Estimated: 15%

Government Revenues:

Taxes on Imports:

• Actual (2022): TZS738.2 million
• Budget Estimated (2023): TZS774.6 million
• Actual Operations (2023): TZS884.7 million
• Percentage Change Between Actual and Estimated: 14%

Income Tax:

• Actual (2022): TZS453 million
• Budget Estimated (2023): TZS626.1 million
• Actual Operations (2023): TZS510 million
• Percentage Change Between Actual and Estimated: -19%

Tax on Local Goods and Services:

• Actual (2022): TZS288.1 million
• Budget Estimated (2023): TZS472.4 million
• Actual Operations (2023): TZS460.8 million
• Percentage Change Between Actual and Estimated: -2%

Other Tax:

• Actual (2022): TZS144.5 million
• Budget Estimated (2023): TZS134.7 million
• Actual Operations (2023): TZS128.4 million
• Percentage Change Between Actual and Estimated: -5%

Non-Tax Revenues:

• Actual (2022): TZS337.5 million
• Budget Estimated (2023): TZS454.9 million
• Actual Operations (2023): TZS304.4 million
• Percentage Change Between Actual and Estimated: -33%

Total Government Revenues:

• Actual (2022): TZS1,961 million
• Budget Estimated (2023): TZS2,463 million
• Actual Operations (2023): TZS2,288 million
• Percentage Change Between Actual and Estimated: -7%

Deficit:

• Actual (2022): -TZS516.4 million (deficit)
• Budget Estimated (2023): -TZS780.3 million (deficit)
• Actual Operations (2023): -TZS1,435.3 million (deficit)
• Percentage Change Between Actual and Estimated: 84%