Extracts from the speech by the Minister for Finance and Planning, Hon. Dr. Philip I. Mpango, introducing to the National Assembly, the Estimates of Government Revenue and Expenditure for Fiscal Year 2016/17

This speech presents the first Budget of the Fifth Phase Government under His Excellency, Dr. John Pombe Joseph Magufuli, the President of the United Republic of Tanzania with the motto “Hapa Kazi Tu”. The Government presents this Budget with sincere intention of implementing its commitments under the CCM Election Manifesto (2015-2020); Five Years Development Plan (2016/2017 – 2020/2021); and the National Development Vision 2025 in order to fulfil wishes and expectations of Tanzanians.

This budget has two main economic objectives:

First, to address challenges facing Tanzanians so as to bring new hope for better life to our people, especially to low income earners. This objective will involve major reforms in Government’s undertakings particularly restoring discipline and accountability and to get rid of the culture of doing business as usual, as well as strengthening integrity and management of public expenditure and national resources.

Second, to transform the economy into real middle income status through sustaining macroecomic stability and developing industries that will foster job creation particularly for the youths, and enhancing agricultural productivity in order to increase income for the majority who depend on this sector.

The main emphasis of the 2016/17 Budget is to implement aspirations of the fifth phase government in resolving challenges facing citizens. Moreover, the Government is determined to develop industries which are the basis for a sustainable economy towards attaining middle income status by 2025 hence improving the living standards of the majority.

The Government budget for 2016/17 aims at improving the basic infrastructure for the provision of water, power and transportation for industrial development, as well as raising production of agricultural produce which are used as industrial raw materials. In order to achieve this, the main emphasis will be on improving domestic revenue collection and allocating resources to key areas that attract industrial investment. Efforts will be directed at reducing tax evasion and plugging loop holes for tax avoidance, to create new sources of revenue, and insist the use of Electronic Fiscal Devices (EFDs) in order to increase revenue collection and in the same spirit to control unnecessary expenditure. Thus, the theme for 2016/17 budget of the East African Community Partner States is ‘Industrial Gowth for Job Creation’. Based on this, development budget for 2016/17 has been significantly increased to 40 percent of the total budget compared to an average of 25 percent in previous years. The Budget also focuses on creating conducive environment for business and investment so as to attract domestic and foreign investors in industrial and agricultural development.

Review of Budget implementation for 2015/16

Government plans and budget for 2015/16, aimed at mobilizing shillings 22.49 trillion from domestic and foreign sources. Out of that amount, shillings 13.99 trillion were estimates for domestic revenue including Local Government Authorities (LGAs) own sources, shillings 2.32 trillion were grants and concessional loans from Development Partners; shillings 4.03 trillion were domestic commercial loans and shillings 2.14 trillion were external non concessional loans. Moreover, shillings 16.57 trillion were estimates for recurrent expenditure and shillings 5.91 trillion were for development expenditure.

Revenue

In ensuring effective collection of domestic revenue, policies for 2015/16 aimed at minimizing unproductive tax exemptions; increasing the use of electronic systems in revenue collections; and widening revenue base. The policies aimed at collecting shillings 12.36 trillion from tax revenue, shillings 1.11 trillion from non-tax and shillings 521.9 billion from LGAs own sources.

During the period between July 2015 and April 2016, actual domestic revenue collected, including LGAs own sources, was shillings 11.48 trillion equivalent to 99 percent of the period estimate of shillings 11.55 trillion. Tax revenue amounted to shillings 10.17 trillion, equivalent to 100 percent of the target; non-tax revenue was shillings 967.2 billion equivalent to 105 percent of the target; and LGAs own sources amounted to shillings 344.1 billion, equivalent to 79 percent of the period estimates. 

The good performance of tax and non-tax revenue was championed by the leadership of the fifth phase government in revenue collection and minimizing losses from tax, levies and various fees. However, LGAs own sources were below the target due to inefficiency revenue collection systems and low property tax collection compared to the available potential. 

Achievements and Challenges in Budget Implementation for 2015/16

During the ten months of implementing the 2015/16 budget, the Government recorded several achievements notwithstanding the challenges encountered. These achievements include: increased tax revenue collection from an average of shillings 904.0 billion per month in 2014/15 to shillings 1.02 trillion per month during the same period in 2015/16; financing the 2015 general elections with domestic resources; and financing free education programme for primary and secondary school.

Other achievements recorded include: increase in number of students accessing higher education loans from 99,069 in 2014/15 to 123,798 in 2015/16; payment of verified arrears owed to contractors, suppliers of goods and services and Government employees.

Notwithstanding the aforementioned achievements, several challenges are still prevalent and these include; tax evasion involving collusion between businessmen and unethical tax collectors; low awareness of the new Value Added Tax Act of 2014; low compliance by businessmen in the use of EFDs coupled with citizens’ culture of not demanding EFD receipts upon purchase of goods or services; complex environment in collecting tax from the informal sector; ghost workers and illegitimate students accessing higher education loans; and mismatch between revenue and expenditure arising from increased demand for improvement of infrastructure such as water, railway, ports, airport and roads.

Budget for 2016/17

Basis and Objectives of the 2016/17 Budget

Based on the review of economic developments and macroeconomic outlook in the medium term, as guided by the financial programming tool, macroeconomic projections and policy targets for 2016/17 will be as follows:

1. Real GDP is projected to grow by 7.2 percent in 2016 from real growth of 7.0 percent in 2015;

2. Containing inflation at single digit in the range of 5.0 to 8.0 percent in 2016;

3. Domestic revenue including LGA’s own sources is projected at 14.8 percent of GDP in 2015/16 and maintain an upward trend to 16.9 percent of GDP in 2016/17;

4. Tax revenue is projected at 13.8 percent of GDP in 2016/17 from an estimate of 12.6 percent of GDP in 2015/16;

5. Total expenditure is estimated to increase from 23.2 percent of GDP in 2015/16 up to 27.0 percent of GDP in 2016/17;

6. Fiscal deficit is projected at 4.5 percent of GDP in 2016/17 from an estimate of 4.2 percent of GDP in 2015/16;

7. The ratio of current account deficit to GDP is projected at 7.9 percent in 2015/16 and narrow down to 7.5 percent in 2016/17; and

8. Maintain gross official reserves sufficient to cover at least 4.0 months of projected imports of goods and services by June 2017.

The policy targets specified above will be achieved under the following assumptions:

1. Continued peace, security, stability and tranquillity in the country, regionally and globally;

2. Stability of oil prices in the world market;

3. Favourable weather conditions in the country and the region;

4. Sustaining macroeconomic stability and social economic gains including GDP growth, external trade, money supply, domestic revenue, expenditure and social services;

5. Pursuing prudent monetary and fiscal policies to ease inflation and reduce interest rate spread;

6. Stability in the global economy; and

7. Enhanced private sector participation in the economy particularly in industrial investment.

Revenue Policy for 2016/17

The fifth phase Government is determined to increase and strengthen domestic revenue collection through several measures. In 2016/17 Government revenues are projected to increase and therefore reduce budgetary dependency. In achieving this, the revenue policies for 2016/17 will focus on the following areas:

1. Ensure effective use of electronic systems and devices in revenue collection so as to increase efficiency and minimize revenue losses;

2. Continue widening tax base including formalization of the informal sector;

3. Strengthening monitoring of revenue collection in Government institutions and agencies;

4. Continue with measures to control and reduce tax exemptions; and

5. Continue strengthening management and undertake frequent inspections at the ports, airports, and border posts to ensure appropriate tax collection.

Tax Exemptions

The Government will continue to control tax exemptions to religious institutions and investors to ensure they are productive and beneficial to the nation. In view of this, the Government will amend relevant legislations in order to address tax exemption abuses. These amendments will be incorporated in the Finance Bill 2016. Among other things, the amendments will require beneficiaries to pay taxes and apply for refunds which will be reimbursed upon verification.

The Government will continue publishing tax exemption reports on quarterly basis to inform the public on the beneficiaries and areas benefited. This arrangement will help to control abuses of tax exemptions by respective beneficiaries and unethical public servants.

Non-Tax Revenue

With effect from 2016/17, administration and collection of non-tax revenue including property tax will be under the Tanzania Revenue Authority (TRA). This decision is based on TRA’s experience in revenue collection, existing tax collection systems and coverage across the country as well as lessons learned from other countries like Ethiopia and Rwanda. Moreover, the Government will continue to enforce the use of electronic systems.

Expenditure Policy for 2016/17

For 2016/17, the Government will continue to prudently manage the use of public funds in line with existing legislations as well as other directives. The aim is to control expenditure, leakages and misappropriation of public funds with a view to direct savings to development projects. In addressing these measures the Government will take the following actions:

1. To match monthly expenditure with actual revenue collected to avoid accumulation of arrears. All Accounting Officers are required to adhere to accounting instructions issued including entering into commitments only after receiving exchequer;

2. To ensure that payments to contractors and suppliers are supported by Local Purchased Orders-LPOs generated from the IFMS;

3. To table before the Parliament amendments of the Public Procurement Act 2011. The amendments aim at fixing loopholes leading to misappropriation of public funds and ensure value for money in public procurement;

4. To control expenditures in public institutions, regularly monitor operational costs and take appropriate actions;

5. To ensure that all LGAs are connected to the Tanzania InterBank Settlement System (TISS);

6. To ensure that public institutions operating commercially, do not depend on Government subventions; and

7. To strengthen management of public funds including monitoring and evaluation of development projects.

Priority Areas

In my speech on State of the Economy 2015 and the Annual Development Plan 2016/17, I spelt out four main priority areas:

1. Interventions for fostering Economic Growth and Industrialization;

2. Integrate Economic Development and Human Resources;

3. Enabling Business Environment; and

4. Implementation effectiveness.

In order to achieve these goals, the Government intends to pursue the following strategies: to create enabling environment to attract private sector to invest in industries and other investment opportunities especially through Public Private Partnerships (PPP); to address bottlenecks related to investments and hurdles in doing business; and to strengthen, monitor and evaluate implementation of the Annual National Development Plan.

Increase Industrial Production

As spelt out earlier, the 2016/17 Budget theme is “Industrial Growth for Job Creation”. In order to implement this, the Government intends to undertake various strategies that will stimulate industrial investment. Among the strategies to be undertaken include: valuation of land and property in strategic investment areas, and effect compensation thereof; carrying out industrial research through TIRDO, TEMDO, CAMARTEC and COSTECH; developing infrastructure for small scale industries through SIDO; developing industrial clusters; and facilitating availability of simple and affordable industrial technology. In 2016/17, the Government has budgeted shillings 50.9 billion through Votes 44 and 46 to implement these strategies.

The Government intends to ensure that all privatized industries are operational. In the year 2016/17, the Government will finalise the evaluation of privatised industries and put in place strategies to revamp them. To begin with, the Government will start with the following industries: textiles, livestock products, agro-processing including rubber products, cashewnuts, tobacco, sugar cane, tea and paddy. In implementing these, the Government has budgeted funds in various votes in order to develop commercial farms; and to improve production of agricultural and livestock produce. Much as the Government intends to promote private sector investment, appropiate action will be taken against those who do not comply with the privatisation agreements.

In order to improve the environment for industrial investment, the Government has budgeted funds for improvement of infastructures related to power, water, roads, ports and railways. Accordingly, the Government intends to address unnecessary bureaucracy and expedite decision making, propose tax incentives, facilitate availability of credit through TIB Development Bank and other financial institutions in order to attract investors and private sector.

The Government through our Embassies, High Commissions and Diaspora, will strengthen economic diplomacy in order to attract more investors from both developed and emerging economies including China, India, South Korea, South Africa and Brazil. The focus is to use economic diplomacy to promote Tanzania’s investment opportunities abroad. In addition, the Government will continue to appeal to foreign investors who are currently in the country to be our good ambassadors in their respective countries.

Enabling Environment for Private Sector Participation

The 2016/17 Budget intends to improve the business environment including investment in railways, roads, ports and water infrastructures; and increase availability of reliable power supply to attract private sector investment in the country. Further, the Government will continue to review various taxes, levies and fees in order to reduce or remove those nuisance ones. The Government will continue to improve investment environment in the country in order to attract private sector 39 to invest in our industries and other sectors. To facilitate this, the Government will improve services relate to accessibility of loans to private sector; enhance the capital market; strengthening coordination of public private partnership – PPP; improve doing business environment through various incentive packages and removal of red tape measures.

Reforms of the tax structure, fees, levies and revenue measures

I would like to present proposals on revenue measures reforming the tax regime, imposing new taxes, varying tax rates, reviewing fees, levies and charges imposed through various legislations. Moreover, I also propose some measures in order to enhance revenue collection systems, administration and promote voluntary compliance. The proposed measures are addressed through the following laws:

1. The Value Added Tax, CAP 148;

2. The Excise (Management and Tariff) Act, CAP 147;

3. The Income Tax Act, CAP 332;

4. The Vocational Education and Training Act, CAP 82;

5. The Motor Vehicles (Tax on Registration and Transfer) Tax Act, CAP 124;

6. The Tanzania Revenue Authority Act, CAP 399 (in conjunction with, The Urban Authorities (Rating) Act 289, The Local Government Finance Act, CAP 290; The Tax Administration Act, 2015; and The Tax Appeals Act, CAP 408);

7. The Treasury Registrar (Powers and Functions) Act, CAP 370;

8. The East African Community Customs Management Act, 2004;

9. Minor amendments in tax laws and other laws;

10. Amendment of fees and levies imposed by Ministries, Regions and Independent Departments.

The Value Added Tax, CAP 148

I propose to amend the Value Added Tax Act, CAP 148 as follows:

1. To exempt VAT on Raw Soya Beans. It was noted that this commodity was erroneously omitted under the exemption schedule in item 3, which comprises livestock, basic unprocessed agricultural products and foods for human consumption;

2. To exempt VAT on all un-processed vegetables and unprocessed edible animal products which are classified under EAC Common External Tariff, 2012, Chapter 2 and 3 (Un-processed edible animal products including Live Fish), Chapter 7 (fruits and nuts), Chapter 8 (Cereals), Chapter 10  (Cereal flour) and Chapter 11 (seeds). This measure is intended to provide exemption to all unprocessed foodstuff and ensure availability of basic nutritional necessities at affordable prices.

3. To include vitamins and food supplements (micronutrient compound) in the list of exempted items which have been approved by the Minister for Health Community Development, Gender, Elderly and Children. The Minister has declared these micronutrient compounds in the list of essential drugs, medicines and equipment that will be used in the fortification to the food vehicle in order to improve nutritional content as an effective way to improve community health.

4. To include water treatment chemicals in the list of exempted items which have been approved by the Minister responsible for Health. These are important for human health protection through provision of safe water.

5. To impose VAT on tourism services including supplies of tourist guiding, game driving, water safaris, animal or bird watching, park fees and ground transport services. This measure was put in abeyance during the inception of the new VAT Act in July 2015 in order to provide for the operators to conclude their contractual obligations entered with tourists in a year. The Value Added Tax is imposed on similar services in the neighbouring countries like Kenya, Rwanda and South Africa.

6. The goods manufactured in Mainland Tanzania and sold to Zanzibar will attract VAT in Zanzibar while those goods manufactured in Zanzibar and sold to Mainland Tanzania will attract VAT in Mainland Tanzania. The measure intends to resolve the issues of refund claims to Zanzibar Treasury since the new VAT law does not provide for refund as it was the case in the repealled VAT Act. In this case, Value Added Tax will be imposed at the place of consumption in line with the destination principle. Under this arrangement the Government of Zanzibar will collect VAT on the supplies from Mainland Tanzania to Zanzibar, and Mainland Tanzania will collect VAT on the supplies from Zanzibar to Mainland Tanzania;

7. Make corrections in the exemption list of petroleum products provided under item number 15 in the Exemption Schedule of the VAT Act, Cap 148 in order to include bitumen products under HS Code 27.13, 27.14 and 27.15;

8. To provide for VAT exemption on Aviation insurance. This measure takes into consideration that aviation industry in the country is still at infant stage and needs to be supported in order to be able to cover insurance risks without additional costs due to taxation. There is a need to promote aviation industry and subsequently tourism industry. This measure will allow operators to acquire insurance covers from within the country instead of offshore market;

9. To introduce VAT on fee based financial services. The measure is intended to widen the tax base and increase Government revenue. However, this measure will not apply on interest paid on loans.

The VAT measures altogether will increase Government revenue by Tshs. 136,140.3 million.

I further propose to make various administrative measures under the Tanzania Revenue Authority in order to improve revenue collections and widen tax base. The Government proposes the following specific measures;

1. To effectively keep and up-date taxpayer register and maintain accurate taxpayers records and information;

2. To ensure that all active VAT registered taxpayers are provided with Electronic Fiscal Devices (EFDs) and are effectively using them in business transactions;

3. To enhance audits of taxpayer’s business records and develop a comprehensive compliance programme to ensure the attainment of the revenue target collection;

4. To establish EFD Units in Dar es Salaam Tax Regions and all new taxpayer’s service centres in order to improve compliance rate and hence improve VAT collection.

I propose to review the Tanzania Investment Act to be consistent with the Value Added Tax Act with a view to effectively control and reduce exemptions which are not productive.

The VAT administrative measures are estimated to increase Government revenue by Tshs. 268,607.2 million.

The East African Community Customs Management Act, 2004

The Ministers responsible for Finance from the EAC partner states held their meeting “Pre-Budget Consultations” in Arusha, Tanzania from 2-5 May, 2016. During the meeting, they agreed to effect changes in the Common External Tariff (CET) and amend the EAC Customs Management Act, 2004 for the Financial Year 2016/17.

The changes in the Common External Tariff (CET) which were recommended and agreed have to the great extent focused on economic growth through industrial development in the East African Community Region.

The Ministers for Finance also agreed to make amendments in the EAC Customs Management Act, 2004 as follows:

1. Amend the 5th Schedule to EAC-CMA to include Refrigeration equipment for human dead bodies under HS Code 8418.69.90 for use in Hospitals, city councils or funeral homes;

2. Amend the 5th Schedule to EAC-CMA (Chapters 84 and 69) to include incinerator’s equipments and materials used in hospitals to burn waste.

3. Amend the 5th Schedule to the EAC-CMA to remove import duty exemption on uniforms for hospital staff. The uniforms are not specialized products and can be acquired locally and therefore they should attract CET rate.

4. Grant duty remission to the manufacturers of Inputs for the manufacture of deep cycle batteries. This measure is intended to boost local industries since the imported deep cycle batteries are exempt under the 5th Schedule. This move will facilitate industries to set up shops in the region.

5. Amend the 5th Schedule to the EAC-CMA to include blood collection tubes. This measure is in line with the products catered for under item 13 part B, for hygienic bags.

6. Grant duty remission for inputs or raw materials for use in the manufacture of solar equipments.

The import duty measures altogether will increase Government revenue by Shs. 42,850.6 million.

Budget structure for the year 2016/17

Consistent with macroeconomic and fiscal policy objectives, the budget frame for 2016/17 will be as follows: the Government intends to raise shillings 29.54 trillion to finance recurrent and development expenditures. In view of this, the budget for 2016/17 is expected to increase by shillings 7.04 trillion equivalent to 31.1 percent compared to the budget for 2015/16 of shillings 22.49 trillion.

The Government intends to collect domestic revenue including LGAs own sources amounting to shillings 18.46 trillion, equivalent to 62.3 percent of the whole budget. Out of this amount, tax revenue is estimated to be shillings 15.11 trillion, equivalent to 13.8 percent of GDP. In addition, non-tax revenue and revenue from LGAs own sources is shillings 2.69 trillion and shillings 665.4 billion respectively. The increase in estimates of tax and non-tax revenue signifies the available capacity in TRA and other public institutions in collecting revenues. Therefore, the Government will closely manage and plug all loopholes leading to tax and non-tax revenue losses in order to ensure that the collection targets are achieved.

Development Partners are expected to continue providing grants and concessional loans amounting to shillings 3.6 trillion, equivalent to 12 percent of the total budget. Out of this, shillings 2.75 trillion is for development projects; shillings 372.1 billion is sector basket funds and shillings 483 billion is General Budget Support (GBS).

In order to finance the budget deficit, in the year 2016/17 the Government intends to borrow shillings 7.48 trillion from domestic and external sources. Out of this, shillings 5.37 trillion is expected to be raised from domestic sources for financing rolling over of maturing Treasury bills and bonds, including new loans for financing development projects and payment of verified claims. Moreover, in order to speed up infrastructure construction and ensure that the second Five Years Development Plan is fully implemented, the Government expects to raise shillings 2.10 trillion from external non-concessional borrowing.

The Government has made significant efforts in mobilizing domestic revenues for financing development projects, among others. These projects are partly financed through external non-concessional loans whose availability largely depends on the global financial market conditions. In 2016/17, major projects to be implemented include upgrading the central railway to standard gauge and port improvement. Preparation of these projects requires adequate time and careful sctrutiny especially in ensuring availability of additional financing. In this regard, implementation of these projects is expected to start during the second half of 2016/17 after thorough analysis of availability of additional financing and establishing basic prerequisite including procurement of the contractor and signing of the contract. The plan is to hand over the site to the contractor within nine months after commencement of 2016/17 financial year.

With regard to expenditure, the Government plans to spend shillings 29.54 trillion for recurrent and development expenditures in 2016/17. Out of this, shillings 17.72 trillion is set aside for recurrent expenditure and development expenditure is shillings 11.82 trillion, equivalent to 40 percent of the total budget whereas shillings 8.70 trillion is local funds and shillings 3.12 trillion is foreign funds.

Conclusion

As I conclude this speech, I wish to emphasize the following issues which are aimed at strengthening revenue collection and expenditure management in order to implement the budget as planned:

First, the Government will put more emphasis in the use of EFDs in order to ensure that every businessman issue receipts generated by EFDs and citizens are urged to demand such receipts whenever they purchase goods or services. In achieving this, my Ministry will form a Special Team to monitor the implementation of this directive countrywide and ensure that all who are not complying with this directive face legal actions. My plea to all leaders, especially Honourable Ministers, Members of Parliament, Councilors and Religious leaders to become role models to the citizens by ensuring that they demand EFD receipts whenever they buy goods or services. Moreover, all leaders are requested to sensitize citizens to demand EFD receipts. Those who do not issue or do not demand receipts should know that they are breaking the law and they are going against our efforts to build a new Tanzania.

Second, all petrol selling stations in the country are directed to finalize installation of EFDs to the pumps used to dispense fuel by 1st October, 2016 in order to ensure that the Government collects relevant taxes. The Government will inspect all fuel selling stations and take legal action to those who have not complied with this directive.

Third, in order to control tax exemptions granted to businessmen, public servants, religious institutions and non-governmental organizations, with effect from next financial year they will be required to pay tax in advance on goods ordered. The tax will be refunded to beneficiaries after making inspection and satisfied that the said goods have been used on intended purpose. Moreover, the Government will require all beneficiaries to submit their applications to the Ministry of Finance and Planning before placing orders on the said goods in order to get the permit to import them.

Four, all Accounting Officers are directed to use electronic systems and devices to collect revenue in Central Government, Local Government Authorities, Public institutions and corporations in order to increase efficiency and control revenue leakage. Moreover, taxes and levies collected should be deposited to banks within 24 hours.

Five, with effect from the next financial year, all Government institutions that were operating under retention scheme are instructed to submit all revenues collected to the Consolidated Fund. The release of funds to those institutions will follow the normal procedures based on the approved budget.

Six, all Accounting Officers are instructed to abide to the Government instruction on cutting unnecessary expenditures in the areas specified which include: overseas travels, foreign training, sitting allowances, seminars and workshops, celebrations and national festivals, procurement of furniture, procurement and maintenance of vehicles etc, in order to get more funds and direct it to the development projects aimed at solving citizens’ problems.

Seven, employers are required to timely submit income tax on employees’ salaries – PAYE together with contributions to Social Security Funds. In addition, all those with outstanding PAYE and contribution deductions are instructed to submit them to the relevant institutions by 31st December, 2016 or else appropriate actions will be taken against them. Accounting officers, Heads of institutions, Corporations and private companies are urged to oversee the implementation of this instruction.

Eight, all Accounting Officers are instructed to use electronic system in the distribution or dissemination of various Government documents exceeding fifty pages with the exception of Votes which are required to distribute hard copies due to legal/regulations requirements. This measure is aimed at reducing huge expenditure associated with the printing and photocopying of those documents and also conserves the environment.

Nine, in the next financial year 2016/17, all outstanding claims relating to utilities, such as electricity, water and telephone bills will be paid centrally by the Ministry of Finance and Planning by using the budget of respective Votes. In addition, Accounting Officers are instructed to pay timely electricity, water and telephones bills to avoid accumulations of new claims.

Ten, Accounting Officers are instructed to procure using Local Purchase Order (LPO) generated by IFMS. Moreover, suppliers and service providers are instructed to ensure that they only receive LPOs generated from IFMS. Therefore, with effect from year 2016/17 the Local Purchase Order which will be generated out of this procedure will not be honoured.

The achievements in implementing the budget presented will depend upon cooperation from every one of you in order to achieve the intended objectives. As I have pointed out earlier, the budget for 2016/17 will depend more on domestic revenue, therefore, every Government institution is urged to play its role in managing revenue collection in order to achieve the revenue target and hence provide quality services to our citizens. I beg everyone to cooperate and be accountable in our respective capacities in order to build industrial Tanzania.