The government's fiscal performance, including expenditure control and revenue generation, and the resulting budget deficit. The actual performance shows a smaller deficit than initially projected, which may have implications for fiscal stability and government finances.
Government Expenditure:
Wages and Salaries:
- Actual Operations (August 2023): 822.9
- Budgeted/Estimated: 825.9
- Percentage Change Between Actual and Estimated: 0%
Interest Costs:
- Actual Operations (August 2023): 285.1
- Budgeted/Estimated: 236.6
- Percentage Change Between Actual and Estimated: 20%
Development Expenditure:
- Actual Operations (August 2023): 1,357.3
- Budgeted/Estimated: 1,392.9
- Percentage Change Between Actual and Estimated: -3%
Other Recurrent Expenditure:
- Actual Operations (August 2023): 562.4
- Budgeted/Estimated: 768.5
- Percentage Change Between Actual and Estimated: -27%
Total Government Expenditure:
- Actual Operations (August 2023): 3,028
- Budgeted/Estimated: 3,224
- Percentage Change Between Actual and Estimated: -6%
Government Revenues:
Taxes on Imports:
- Actual Operations (August 2023): 824.7
- Budgeted/Estimated: 719.4
- Percentage Change Between Actual and Estimated: 15%
Income Tax:
- Actual Operations (August 2023): 988.9
- Budgeted/Estimated: 950.6
- Percentage Change Between Actual and Estimated: 4%
Tax on Local Goods and Services:
- Actual Operations (August 2023): 315.4
- Budgeted/Estimated: 349.6
- Percentage Change Between Actual and Estimated: -10%
Other Tax:
- Actual Operations (August 2023): 114.5
- Budgeted/Estimated: 126.7
- Percentage Change Between Actual and Estimated: -10%
Non-Tax Revenues:
- Actual Operations (August 2023): 293.2
- Budgeted/Estimated: 338.8
- Percentage Change Between Actual and Estimated: -13%
Total Government Revenues:
- Actual Operations (August 2023): 2,537
- Budgeted/Estimated: 2,485
- Percentage Change Between Actual and Estimated: 2%
Deficit:
- Actual Operations (August 2023): -491
- Budgeted/Estimated: -738.8
- Percentage Change Between Actual and Estimated: -34%
Key takeaways from this data:
- Government expenditure in August 2023 was slightly below the budgeted and estimated figures.
- Interest costs exceeded the budgeted amount, indicating increased borrowing costs.
- Development expenditure was slightly less than budgeted.
- Other recurrent expenditure was significantly lower than the budgeted amount.
- Government revenues exceeded the budgeted and estimated figures.
- The budget deficit in August 2023 was smaller than originally estimated.
Tanzania's government was able to maintain some control over its fiscal situation in August 2023, which is a positive sign for the country's economic stability. Effective expenditure management, revenue collection, and deficit reduction are essential components of sound fiscal policy:
Expenditure Control:
The government managed to control its expenditure in August 2023, with actual spending coming in slightly below the budgeted and estimated figures. This shows prudent financial management.
Interest Costs:
The fact that interest costs exceeded the budgeted amount by 20% indicates that the government may have had to pay more in interest on its debt during the month. This could be a result of higher borrowing costs or increased debt servicing requirements.
Development Expenditure:
Although development expenditure was slightly less than budgeted, it remains a significant part of the budget. This indicates the government's commitment to investment in infrastructure and development projects.
Other Recurrent Expenditure:
The significant decrease in other recurrent expenditure compared to the budgeted amount (-27%) might reflect cost-cutting measures or adjustments in specific spending areas.
Government Revenues:
Government revenues exceeded the budgeted and estimated figures, which is a positive sign for the country's fiscal health. This could be due to improved tax collection or other sources of revenue.
Deficit Reduction:
The budget deficit in August 2023 was substantially smaller (-34%) than the initial estimate, indicating that the government managed its finances more efficiently during the month. A reduced deficit is generally positive for fiscal stability.