Zanzibar Unveils Strategic Budget for Financial Year 2024/25 Zanzibar’s government has presented its strategic budget for the financial year 2024/25, outlining its priorities and plans for the coming year. The budget, titled “Transforming Zanzibar: A Vibrant Economy, Sustainable Society,” reflects the government’s commitment to progress and development. Key Highlights The budget focuses on five strategic priorities: * Economic diversification: Promoting growth in sectors such as tourism, agriculture, and fisheries. * Infrastructure development: Investing in roads, ports, and energy to enhance connectivity and trade. * Social development: Improving access to education, healthcare, and housing for all citizens. * Environmental sustainability: Mitigating climate change, protecting biodiversity, and promoting sustainable practices. * Governance and institutional reforms: Strengthening governance institutions, enhancing transparency, and fighting corruption. Revenue and Expenditure The total revenue projected for 2024/25 is 1,791 billion Tanzanian shillings, while the total expenditure is estimated at 1,826 billion shillings. The budget is primarily funded by domestic revenue, with a deficit of 35 billion shillings to be financed by external sources. Key Initiatives Among the key initiatives outlined in the budget are: * Establishing an Industrial Park to attract foreign investment and create employment opportunities. * Upgrading the Zanzibar International Airport to expand tourism and trade. * Constructing a new hospital to improve healthcare services. * Investing in solar and wind energy projects to reduce reliance on fossil fuels. * Implementing a digital transformation plan to improve service delivery and enhance efficiency. Impact and Expectations The budget is expected to have a significant impact on Zanzibar’s economy and society. It is anticipated to boost economic growth, create jobs, improve infrastructure, and enhance the well-being of citizens. The government has expressed its commitment to implement the budget effectively and efficiently to achieve these objectives. Conclusion Zanzibar’s strategic budget for the financial year 2024/25 demonstrates the government’s determination to transform the island into a vibrant and sustainable hub. By prioritizing economic diversification, infrastructure development, social progress, environmental sustainability, and governance reforms, the budget aims to create a prosperous and inclusive future for all Zanzibaris.Zanzibar Unveils 2024/25 Budget with 7.2% Growth ProjectionZanzibar Unveils 2024/25 Budget with 7.2% Growth Projection The Zanzibar government has presented its 2024/25 budget, outlining five key priorities amid projected economic growth of 7.2% in 2024, surpassing the 7.1% achieved in 2023. Key Priorities * Tourism development * Infrastructure projects * Health, education, and water infrastructure * Social services for people with special needs * Digital economy Revenue and Expenditure * Estimated revenue of Sh5.182 trillion, an increase of Sh2.342 trillion or 54.81% compared to the 2023/24 budget. * Estimated expenditure of Sh3.878 trillion, an increase of Sh1.556 trillion or 66.5%. Tax Changes * VAT relief on equipment for people with special needs. * Deduction of VAT for the distribution of locally manufactured boats. * Increase in VAT rate for social media services to 18%. * Alignment of VAT rate for insurance services to 18%. * Exemption of gas imports from excise taxes. * Excise tax increase on imported chicken and fish to encourage local production. * Increase in excise tax rates on alcoholic beverages, including beer. * Increase in excise duty on shisha and e-cigarettes to curb consumption. Expert Opinions While some experts praise the government’s focus on raising revenues, others express concern about the lack of emphasis on identifying new sources of income and the potential impact of increased taxes on the cost of living. Public Reactions * Business community welcomes the increase in excise duty on imported chicken and fish to support local traders. * Economists and citizens express concerns about the budget’s focus on tax increases and its potential impact on the cost of living.Zanzibar Unveils Strategic Budget for FY 2024/25 Zanzibar’s government has presented its strategic budget for the fiscal year 2024/25, outlining key development priorities and plans to boost the archipelago’s economy. The budget, presented to the Zanzibar House of Representatives, aims to create a conducive environment for investment, enhance infrastructure, improve healthcare and education, and promote sustainable economic growth. A significant portion of the budget is allocated to infrastructure projects, including the rehabilitation of roads, bridges, and ports. The government also plans to invest in energy generation and distribution to improve the availability and reliability of electricity. In the health sector, the budget prioritizes the construction and expansion of hospitals, health centers, and other health facilities. The government aims to increase access to quality healthcare services, particularly in rural areas. Education remains a top priority, with investments in early childhood development, primary and secondary education, and higher education institutions. The government aims to improve the quality of education and ensure that all children have access to quality learning opportunities. The budget also emphasizes the need to promote sustainable economic growth through agriculture, tourism, and other sectors. The government plans to support farmers with improved technology and market access, and to develop new tourism products and experiences. The government is committed to fiscal discipline and prudent financial management. The budget outlines revenue and expenditure plans to ensure that the government can meet its obligations while maintaining sustainability. The budget has received mixed reactions from the public and stakeholders. Some welcome the focus on development and infrastructure, while others express concerns about the government’s ability to implement the ambitious plans effectively. The government has pledged to work closely with the private sector, civil society, and development partners to ensure the successful implementation of the budget. The government believes that the strategic budget will lay the foundation for a prosperous and sustainable future for Zanzibar.