Tanzania sees economy expanding at 7.5 pct in 2017

Tanzania sees economy expanding at 7.5 pct in 2017 - Finance Ministry

Posted on :Thursday , 3rd November 2016

DAR ES SALAAM (Reuters) - Tanzania's government has set an economic growth target of 7.5 percent in 2017, compared to an estimate of 7.2 percent this year, and plans to hike spending in the 2017/18 fiscal year by 11.5 percent to 32.9 trillion shillings ($15.1 billion).

The Tanzanian economy grew 7 percent last year, driven by transport, construction, communications and financial sectors.

Africa's fourth-largest gold producer has vast deposits of natural gas, coal, diamonds, uranium and gemstones. But 70 percent of the population rely on agriculture for a living and many have not benefitted from Tanzania's rapid economic growth.

"The macroeconomic objectives of the government ... are to attain gross domestic product growth (GDP) of 7.5 percent in 2017, followed by 7.9 percent in 2018," Finance and Planning Minister Philip Mpango said in a presentation to parliament seen by Reuters on Wednesday.

Mpango said the government was targeting a fiscal deficit, including grants, of not more than 4.5 percent of GDP in the medium term.

Domestic revenues in 2017/17 fiscal year were expected to climb to 32.9 trillion shillings, up from 29.54 trillion shillings in 2016/17, he said.

Government spending over the next fiscal year will focus on infrastructure projects, education, health and water projects, Mpango said.

"The government expects to borrow $900 million from external commercial sources and 4.434 trillion shillings from domestic sources," he said.

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