Tanzania State Debt Up By 15% In A Year

Government debt has reached Tsh. 82.25 trillion, showing a 15% increase from Tsh. 71.31 trillion in the 2021/2022 fiscal year. The Controller and Auditor General (CAG) Charles Kichere  disclosed this when he presented his report for the fiscal year 2022/2023 to the President  at the State House in Chamwino, Dodoma. 

According to the Auditor General, the debt consists of Tsh. 28.92 trillion in domestic debt and Tsh. 53.32 trillion in external debt, demonstrating its sustainability.

“As of June 30, 2023, the government debt totaled Tsh. 82.25 trillion, marking a 15% increase from Tsh. 71.31 trillion in the 2021/2022 fiscal year. This debt comprises Tsh. 28.92 trillion in domestic debt and Tsh. 53.32 trillion in external debt, indicating its sustainability.”

“The debt-to-exports ratio stands at 12.7%, slightly below the 15% threshold, while the debt payments-to-revenue ratio is at 14.3%, slightly lower than the guideline threshold of 18%,” stated Kichere.

CAG’s report also highlighted that  eight agencies collected revenue outside the Government Electronic Payment Gateway (GePG) system, contravening Treasury Circular No. 3 of 2017.

“I discovered that 8 Public Agencies collected revenue totaling Tsh. 23.27 billion outside the Government Electronic Payment Gateway (GePG) system, in violation of Treasury Circular No. 3 of 2017. Failing to collect revenue through GePG could lead to revenue loss and undermine efforts to regulate and ensure transparency in government revenue,” Kichere emphasized.

Charles Kichere, disclosed that the Tanzania Airline Company (ATCL) incurred a loss of Tsh. 56.64 billion, representing a 61% increase from the previous year’s loss of Tsh. 35.24 billion.