Zanzibar's 8 trillion Shilling budget passes

Zanzibar's House of Representatives has approved a substantial 8 trillion Tanzanian Shilling budget, signaling the government's financial plans for the coming period. The budget's passage comes amidst discussions about the nation's growing debt, which currently stands at 3 trillion Shillings.

During the deliberations, several representatives voiced concerns that the significant national debt could place an undue burden on the citizenry. However, Minister of Finance and Planning, Dk Juma Malik, addressed these worries directly. He stressed that the government is committed to managing and repaying the debt itself, asserting that individual citizens will not bear the responsibility for its repayment.

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There were arguments made here in the Assembly that the national debt is a burden on citizens; no citizen will pay the government's debt. The government has established a good procedure to pay this debt, and the ninth administration will not inherit any debt.

Malik further elaborated on the government's debt management strategy, stating that by the end of the current administration's term in 2030, no debt should remain. He acknowledged that some long-term loans might extend beyond this period, but assured that a clear repayment plan is in place, with $20 million allocated monthly for debt servicing. He also highlighted the practice of lending to domestic institutions as a means to foster their growth, noting that repayment with interest benefits these entities.

The Minister also addressed the composition of the internal debt, revealing that 50% originates from the Bank of Tanzania, which holds government shares. Despite ongoing borrowing, Malik emphasized that Zanzibar's economy is growing, which he described as the primary objective for governments worldwide. He indicated that Zanzibar is moving towards reducing its budget dependency, a trend he expects to continue over the next three fiscal years.

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The arguments presented here in the Assembly were causing me sleepless nights, but today I thank the ministers and deputy ministers for responding to many of the arguments, making my job easier; it has been like a football team.