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Friday, July 25, 2008

2008/09 Tanzanian Budget

For the last one month the Tanzanian Parliament has been discussing the 2008/09 Budget. Sadly, a lot of Tanzanians do not take the time to fully read budget speeches; even so called experts (i.e. Economists, Business, Finance professionals, Political Scientists, etc). At the very best, we would listen to the speech on the radio, or just read what is reported in the media or talked about on the streets. It is high time we started paying close attention and analyse everything; God knows half of our MPs don't.
I hereby call upon all members to read this years speech on Government Expenditure and Revenue estimates delivered by the Minister for Finance and Economic Affairs, Hon. Mustafa Haidi Mkulo on 12/06/2008. It can be found here in English and in Swahili

Many thank yous to an anonymous member (a.k.a Mkulima) who suggested this discussion topic

13 comments:

Anonymous said...

Hello wana jukwa... I wish ningechangia a little bit, lakini balance of budgeting sio section ninayo ijuaa sana....

Naangalia maojiano yenu.
Mdau 1

Anonymous said...

Elewa kwanza kabla sijachangia hakuna Finance professionals, inayotenganishwa na business.
Usifikiri Microsoft word ikikataa kitu/neno wakati una-andika basi ndio sahihi. Maana yake ni kwmba sentensi yote haikuwa na maana.

Nalitolela, P. S. said...

Dear Anonymous poster from Mon Jul 28, 06:11:00 AM EAT

It is my guess that your comment is directed to the part of the post that says, "..Economists, Business, Finance professionals, Political..".
I kindly appreciate your comment and your suggested correction, however, with all due respect, I find your remark about Microsoft word to be rather rude and impolite. In either case, I politely beg to differ with your suggested correction. I do agree that no business area is completely separable from the other, however, when used in a context such as above, the word "business" refers to experts specializing in areas other than finance. It is therefore not uncommon to see the words business, finance (or business & finance for that matter) to appear in literature like this.

I am not an English expert, but I believe use of the words like I did, is in fact not a redundancy or misnomer as you suggested.

Anonymous said...

Hello Peter,
I think you answered the question of anonymous correct. There is a big difference between business and Finance. With due to respect, i believe his opinions were a little bit out of touch.

I do have one request peter, will you mind to upload other topic while we're waiting response from budget exparts .

Nalitolela, P. S. said...

Thank you Anonymous Poster from Mon Jul 28, 07:23:00 AM EAT.

I will be posting a topic later today (Monday). I also urge all members to suggest topic. They may be in the form of a question you need help with; a debate topic; an article or paper; etc.

In the mean time, I came across the following budget summary prepared by PWC Tanzania. It highlights the important points from the budget and makes it easier for someone who is in a hurry to get a grasp of what is in this year's budget without reading the Hon. Minister's entire speech.

You can find the PWC Budget Summary here

Anonymous said...

Hello Peter,
I just heard NMB Bank will float government shares in the market. Is there anyway we can get NMB financial statement, so we can try to price their value per share.

Kama ukishindwa kuizipata, then nadhani in the future unaweza kuapload mada inayo husu Treasure pricing model, ili tuweze kuwasaidia Watanzania wenzetu ambao wanataka kununua share, lakini hawajua kama ziko over pricing, or under pricing or excatly price.

I think watu wameanza kununua Fixed Income Securities lakini bado majority hawafahamu when to buy, and why you wanna buy it?

Last in the future tunaweza kuongelea establishment of Municipal Bonds au Revenue Bonds. Hizi zitasaidia Local Government kuestablish new projects bila kukopa pesa kwa Western countries, at the sametime wataweza kupata hizi pesa kupata kwa wananchi wenye surplus.
Mdau #1

Anonymous said...

Hello Peter,
I just heard NMB Bank will float government shares in the market. Is there anyway we can get NMB financial statements, so we can try to price stock value

Kama ukishindwa kuizipata, then nadhani in the future unaweza kuapload mada inayo husu Securities pricing model, ili tuweze kuwasaidia Watanzania wenzetu ambao wanataka kununua share, lakini hawajua kama ziko over pricing, or under pricing or excatly price.

I think watu wameanza kununua Fixed Income Securities lakini bado majority hawafahamu when to buy, and why you wanna buy it?

Last in the future tunaweza kuongelea establishment of Municipal Bonds au Revenue Bonds. Hizi zitasaidia Local Government kuestablish new projects bila kukopa pesa kwa Western countries, at the sametime wataweza kupata hizi pesa kupata kwa wananchi wenye surplus.


Mdau #1

Nalitolela, P. S. said...

Thank you Mdau #1.
In regards to NMB, it is true that the government was planning to offload 21% of it's shares. This is the latest news I have: Sunday Observer. June 26th, 2008

According to the article, the IPO was supposed to be launched last month (June). I am not sure what the status is right now, but I have contacted some friends who are licensed brokers back home, and will get back to you with the info ASAP.

I will see if we can get the NMB Financial statements online. However for people back home, just peruse through the newspapers; audited statements for the year ending June 30th should be published in the in accordance with the law. (NB:All banks are required to publish quarterly audited statements in the newspapers)

The article in the observer also highlights profit and dividend figures for the last financial year

Nalitolela, P. S. said...

about the financial statements, I don't think the June 30th statements are ready to be released; I think they are still being audited. They should be appearing in the papers in August.
Unfortunately i could not find the NMB statements for the quarter ending Mar 31st, 2008 on their website. If anyone back home has access to the newspapers with NMB statements, could you kindly scan the page and email it to me so I can post it here? Check the May newspapers.

Anonymous said...

Thanks Peter,
It seems you know well how Tanzania Financial system works. I am planning to go back sometime this year, and see if there is opportunities.
Looking forward to share my thoughts on the new topic.

Anonymous said...

Howdy Howdy Wadau,

I feel like the bus has left alredy; but i will try to catch on.

I read the budget in full, but i was ticked off by seeing political propagandas on the very first paragraphs. I did not know that our budget still spell things like "CCM manifesto" either directly or indirectly.

That said, i honestly dont know much about Mkukuta than its mission statement...therefore, i am trying to educate myself then will proceed

Anonymous said...

Wadau,
Im glad to go through that Mkukuta thing!. In principle, it is the best policy we have ever had. One question came through my mind which i will ask fellow wadau is; are our leaders visionary enough to implement it. The reason for my query is that, Mkukuta gives us a picture of where we need to be. But for us to get there we need a visionary leader to set us on the train track and let us roll.

I am of that opinion because, during my work experience i happened to manage a fund of funds under Capital Guading Trust Company (SG)with the beneficiary of the fund being the Bank of Botswana. I was amazed how visionary these people were in Investing their moneny bearing in mind that their minereal deposit could wipe out one day and leave them with the Kalahari.The fund is doing realy well and its returs are directed towards education (Wadau, tell me a single Mtswana-who is paying for his/her own tuition)

The Second Example is Rwanda, they also have there version of Mkukuta.The Visionary His Exellency Major General Kagame; has set his vision to see Rwanda becoming the ICT hub for East and Central Africa. He is doing it by building Colleges and Universities and preparing his people for the D day.Im also told that microsoft is eyeing the opportunity very closely.

These are some examples that we could quickly use to help us being more specific.
In our case we need to do 2 things because our contry is very massive and has better advantege in resources the the mentioned above.

1. Inrease the goverment income base (not to depend on Taxes and foreign aid only- will elaborate this later)
-When we depend on too much of foregin aid, we are forced to give something in return.I have learned that we get say, 3 billion from Norway but we give 3.8 billion of contracts to Norwegian construction companies!!!
I do support the Idea of Mdau #1 of introducing other derivatives,like Municipal bonds etc.The Domino effect of these will increse local authority income,fund more projects as well income to its people.(No free lunch of course)

2.Focus on Specific Area, say, Infrustructure, This is how great Nations were built.America 70-100 ago.Labor and Equipment were not as good as now but there vision on infrustructure was unbeatable.Another example is India, it has done a great job to prepare its Citizens to be Competative in Technology (IT Medicine Manufacturing etc).

In "my opinion" it will be very hard to implement the whole Mkukuta at once...And to Answer or respond to the Main poster of the quesion about "the effet of budget to the end user"...i will say Mwananchi has to understand that ..the effects will/should not be immidiate.Because immediate result kills exellency and innovation (i.e dependency of govement contracts-Richmond etc)because we are rushing to get things done and they get done partially.

Anyhow,sorry i must have taken alot of space.

Ruta Deo.

Nalitolela, P. S. said...

Hey folks,
Here is the Opposition Camp's response to the Government's proposed Budget:

http://www.chadema.net/hotuba/misc/hotuba_2.html

read by Hon. Hamad Rashid Mohamed (Wawi, CUF) on June 16th, 2008.

What's your take on this?