Zanzibar posts lowest budget deficit

The Zanzibar government’s budget deficit dropped sharply in the end of the third quarter of 2013 pushed to its lowest level by recording lower revenues spending.

For the fiscal year that ended on Sept. 30, the deficit was Tsh 7 billion ($4.367 million) on cheques issued basis, the Bank of Tanzania reported in October this year.

The deficit narrowed to Tsh 6.5 billion ($3.456 million) after adjustment to cash and was exclusively financed by external sources.

Total resources amounted to Tsh 27.6 billion ($16,223 million) out of which Tsh 24.0 billion ($14.975 million) was from domestic sources and the balance was grants while the total expenditure amounted to Tsh 34.6 billion ($

During the period under review, Government expenditure amounted to Tsh 28.9 billion ($17.462 million) out of which 71.6 percent was recurrent expenditure and the balance was development expenditure.

Out of development expenditure, 76.8 percent was foreign funded and the balance was government contribution

In August 2013, domestic revenue collections amounted to Tsh24 billion ($14.967 million) or 95.1 percent of the target for the month.

Tax revenue accounted for 92.8 percent of the total revenue collections.

However, the Zanzibar current account recorded a deficit of $4.9 million in August 2013, compared to a deficit of $ 0.6 million recorded in the preceding month.

The widening of the current account deficit was largely due to an increase in the import bill.

For the year ending August 2013 the current account deficit narrowed to $12.1 million from a deficit of $33.2 million recorded in the corresponding period in 2012.

This outturn was on account of an increase in service receipts coupled with official current transfer inflows.