THE Parliament yesterday endorsed an Appropriation Bill to set aside 36.681 tr/- from the national budget as Consolidated Fund, which is an additional of 352bn/- from the budget estimates tabled in June, 10th, this year.
Speaker of the National Assembly, Job Ndugai said the endorsement signifies official issuance of 36.681tr/- for the use of the 2021/22 fiscal year national budget in comparison to the estimates of 36.329tr/- that was tabled previously.
By the Act the Treasury may issue the Consolidated Fund as supply granted for the service of the year ending on the June, 2022.
The Appropriation Act empowers the Minister for Finance and Planning to borrow money anytime within or outside the country, but not later than June 30th, 2022.
“The Minister may borrow within or outside the United Republic of Tanzania any sum not exceeding 36.681tr/- by the way of loan” read the Act in part.
It further elaborated that the Minister is mandated to borrow money as loan, advance, in form of bills or bank overdraft he/she deems fit, and pin kit on any of the assets of the country, including securities forming part of the Consolidated Fund.
Moreover, according to the Act, any money borrowed shall be placed to the Credit of the Exchequer Account and shall form part of the Consolidated Fund, and be available in any manner in which that it is available.
Besides that, any money borrowed shall be subject to repayment in accordance to the conditions prescribed in the loan agreements between the country and the lenders.
In the case, the powers conferred upon the Minister for Finance and Planning shall be in addition to the mandate of the authority under the Government Loans, Guarantees and Grants Act to reallocate the funds wished.
“Where the Minister is satisfied that it is necessary in the public interest to reallocate the funds… that provision be made for any region, ministry or independent department of the government.
It would be detrimental to the public interest to postpone the expenditure until provision is made by the Parliament” read the Act in part.
It further read that the Minister subject to the provisions of the Budget Act, authorize the application of any surplus arising out of the savings in the Consolidated Fund for pensions, gratuities or other retirement benefits, or for widows and orphans’ pension for or towards the excess or service.