Home East Africa Government Debt increases by 13.7 percent

Government Debt increases by 13.7 percent

by Kwabe Ben

The Tanzanian government’s debt has increased from sh56.76trillion last year to an anticipated  sh64.52trillion  or higher by June 30, 2022.

According to Charles Kichere, Controller and Auditor General, there has been an increase of sh7.76trillion equivalent to 13.7 percent. As he presented the audit report for the financial year end to President Suluhu Hassan Ikulu Chamwino.

In addition, Kichere said projects to build and upgrade 12 airports worth sh1.02trillion implemented in the period between 2016/17 to 2020 2021 hd been audited. Terming the measure of government debt using GDP shows that this debt is still sustainable.

CAG Kichere Charles

“The audit found out that there is an overlap of powers and responsibilities for the development of Tanroads (National Roads Agency) and TAA (National Airports Authority) airports, leading to shortcomings in accountability and budget execution,” he stated.

Kichere also said there has been an identified increase in the cost of sh22.35billion due to non-payment of 1,125 households at Julius Nyerere International Airport for up to 23 years.

He said there are people who need to be compensated but there are procedures that have not been completed since 1997 and that the assessment shows the debt is increasing from sh7billion to sh29 billion.

An identification by the CAG that delays in payment of contractors which resulted in interest rates of sh14.14 billion, of which sh11.39 billion at Julius Nyerere International Airport and sh2.75billion for Mwanza Airport.

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