FOR the first time the government on Friday tabled the Budget Bill, 2014, which seeks to put in place legal framework for management of government spending.
Minister for Finance, Ms Saada Salum Mkuya, told the National Assembly on Friday that the bill proposes for enactment of the Budget Act with a view to put in place legal framework for management of government budget process from preparation, approval, execution, monitoring, evaluation and reporting.
She said the proposed act will apply in Tanzania mainland only. She also said the bill intends to put in place a better system between the government, National Assembly and other entities involved in the budget process.
It will also look at the existence of budget discipline by observing plans, revenue and expenditure, a credible budget which is implemented as approved by the National Assembly.
"It also aims at putting in place special arrangements for handling reallocation of funds. In addition, the bill expects to incorporate the budgets of Public entities in the books for the Estimates of Public Revenue and Expenditure respectively," she said.
The bill, she said, is divided into nine parts, in which part one deals with preliminary provisions whereby provisions on citation and application of the proposed act are contained.
The part also contains the definitions of different term used in the act. She said part two deals with macroeconomic and fiscal framework.
The section identifies principle for fiscal policies, fiscal policy objectives, macroeconomic and fiscal forecasts and coordination of National Development Plan.
Part three deals with management of budget process and identifies responsibilities, power and function such as responsibilities of the National Assembly in relation to budget, powers and functions of the minister, powers and functions of Minister for Planning Commission, powers and functions of the Permanent Secretary, Commissioner for Budget, National
Plan and Budget Guidelines Committee, Commissioner for Policy Analysis, Treasury Registrar and Accounting Officers. According to the minister, part four deals with budget preparation and approval process, while part five deals with budget execution, monitoring, evaluation and reporting and part six deals with management of revenues. I
t identifies principle for management of revenues and responsibility in revenue collection and management framework for management.
The minister further said that part seven of the Bill deals with oversight of subsections and government and public entities, while part eight deals with general provisions.
"This part identifies regulations, instructions and directions, extension of period set, liability on failure to meet requirements of the Act, corrective measures against entities included in the government and public entities, indemnity public officer, offence and penalty and transitional provisions," she said.
She said the last part will see the establishment Parliamentary Budget Office, which will be tasked to advise the Parliamentary Budget Committee on preparations and implementation of the government's budget.
Presenting the views of the Budget Committee, Chairman Dr Festus Limbu said the new system will enable the government to have prudent financial management and instil financial responsibility.
It will also well empower the National assembly to supervise the budget process and advice the government accordingly on financial matters.
Dr Limbu said almost 30 countries in the world have adopted to the procedure, naming them as Kenya, Uganda, Nigeria, Ghana, Italy, Morocco, Australia, US, Philippines, South Korea and South Africa.
Presenting the Opposition's views, Shadow Finance Minister, Mr James Mbatia punched holes in the proposed ACT, saying it was unfathomed that it only apply in the Mainland Tanzania.
Speaker of the National Assembly, Ms Anne Makinda, said this will be the first time MPs will be involved in the budget making process from its initial stage.
She postponed the debate to today to give MPs ample time to read the proposed Bill and come up with workable proposals.
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