Sikika, Dar es SalaamTanzania : The electricity shortage pushes
domestic production below its potential causing the loss of numerous
jobs. This could lead to social unrest if the situation is not
addressed soon. As the government struggles to cut down unnecessary
expenditures and seeks for ways to re-allocate its budget to address
the ongoing electricity crisis, Sikika provides an elaborate proposal
how both ends can be met at once.
The government has repeatedly acknowledged the existence of
unnecessary expenditures and promised to reduce them.
“The Government will continue with its efforts to control expenditure
by suspending procurement of all kinds of vehicles […]; rationalize
and scale down various allowances, cut down fuel costs on government
vehicles, reduce the number of internal and external trips, […] and
continue ensuring that seminars and workshop are curbed and, where
necessary, should be under approval by the Prime Minister’s Office”,
said Minister of Finance, Mr. M. Mkulo, on the 8th of June 2011.
But today, the estimated sum of unnecessary expenditure items still
amounts to TSH 568 billion, although domestic stakeholders and
Development Partners have repeatedly voiced their concerns regarding
the persistent problem of unnecessary spending.
The available budget estimates indicate that, over the last two years,
unnecessary spending of Regions has been successfully reduced by about
45 percent, while MDAs’ budget estimates increased by 9 percent. Thus,
we see that there is scope to economize the existing budget. We
suggest how these cuttings could be realized by applying advancing
tributes to the MDAs’ total expenditures on allowances, travel,
training, fuel, oils and lubricants, hospitality supplies and new
vehicles.
If we assume that each MDA features fixed expenditures which are
essential to run business, one should consider granting them a free
amount and realize cuts by applying stepwise increasing tributes.
Sikika’s suggested formula would grant MDAs to freely allocate TSH 1
billion across unnecessary expenditure items. Then, every TSH between
1 and 5 billion would be reduced by one-third (33%) and every TSH
above 5 billion by two-thirds (66%). If we apply this formula to the
current unnecessary expenditure estimates, TSH 273 billion, or 2.6% of
all MDA spending, would be free to resolve the power crisis.
Our leaders need to find new ways raising resources without
jeopardizing basic services. Sikika urges the government, therefore,
to take the current energy crisis as an opportunity to reduce
unnecessary expenditures across all MDAs, before taking monies away
from vital areas like maternal health and infrastructure projects.