Dar es Salaam, Tanzania:
The ACT Wazalendo Party has advised the Government to come up with a special strategic budget plan that will help end the domestic debt of 30 percent. The effects of not having a plan which will continue to hurt the people.
The monthly report of the Central Bank of Tanzania (BoT) shows that within one year, domestic debt has increased by 10 percent from Sh18.6 trillion to Sh26.6 trillion, an increase that he said had never happened in the past 20 years.
Speaking today January 15, 2023, the shadow minister of finance and planning of the party, Emmanuel Mvula said that the growth of the debt is due to the Government borrowing more from local banks, social security funds, insurance and individuals by providing them with bonds.
“The government has borrowed 27 percent of the domestic debt and of that debt 28 percent has been borrowed from financial institutions, 18 percent comes from insurance and the other percent from individuals. For the past 20 years there has been a growth in this,” he said.
He said the growth of the national debt, especially the domestic debt, its effects go directly to the people while explaining that the domestic debt should not exceed 20 percent and as a country we are 10 percent more.
“Another effect is to let it be known that we use a lot of money to pay the debt, our internal collections are used to pay the debt. We spend Sh900 billion a month to pay the national debt. Every month we pay and of that Sh600 billion is used to pay the domestic debt and Sh300 billion is used to pay the foreign debt,” said Mvula.
He said that due to this situation, the government spends more money to pay debts than to make progress and because it borrows from local banks, causing these institutions to fail to lower interest rates for the private sector and ordinary people who need loans.
“In order to get the money to pay the debt, you see there is an influx of taxes, another effect is that we are going to borrow from the social security funds, which means we are going to affect those funds and thus retirees will not be paid their pensions.
“These debts cause a great burden to the people. Based on that information, ACT Wazalendo is making a proposal to eliminate this debt, the Government should come up with a special strategy to end the debt in this year’s budget and since we are going to prepare the budget, we want the Government to come up with a strategy to end the debt,” he said.
Source: mwananchi.co.tz
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
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