The disbursement of government funds from the national budget to recurrent and development spending increased markedly, rising from 9 percent in 2020/21 to 25 percent in the 2021/22 fiscal year, according to the Controller and Auditor General’s (CAG) 2021/22 report. The report, released this week in Dodoma, shows that funds for recurrent expenditure allocated to ministries, departments and agencies amounted to TSh 17.754 trillion in 2021/22, representing 98 percent of the approved estimate of TSh 18.090 trillion. In contrast, the 2020/21 release was TSh 16.3 trillion, an increase of only nine percent over the previous year (2019/20).
For development spending, the government released TSh 11.6 trillion in 2021/22, equivalent to 99.5 percent of the approved estimate of TSh 11.653 trillion. This figure rose by TSh 2.3 trillion, or 25 percent, compared with the TSh 9.267 trillion released in 2020/21. However, CAG Charles Kichere noted that TSh 213 billion of the released funds remained unspent and were surrendered to the Pay Master General. “I am of the view that unutilised exchequer release implies a slow pace in implementing planned activities or an inability of management to utilise the released funds timely,” he argued.
Regarding revenue collection, Kichere reported growth over the past three years (2019/20, 2020/21 and 2021/22). Unlike the previous two financial years, when collections fell short of approved estimates, the 2021/22 collections exceeded the budget by 0.8 percent. Domestic collections from taxes, non‑taxes and local government sources totalled TSh 24.546 trillion, while grants and borrowings accounted for TSh 13.8 trillion (TSh 1.3 trillion from grants and TSh 12.5 trillion from borrowing).
The CAG also highlighted public‑debt trends. As of 30 June 2022, public debt stood at TSh 71.3 trillion, comprising domestic debt of TSh 24 trillion and external debt of TSh 47.2 trillion, up from TSh 64.5 trillion reported for 2020/21. The increase was attributed to exchange‑rate losses and net disbursements (new loans net of principal repayments). “The public debt is sustainable. The ratio of the present value of public debt (external and domestic) to GDP remained below the threshold,” Kichere stated, adding that the risk of external‑debt distress remained moderate, as in the previous year.
Kichere linked these fiscal pressures to the impact of the COVID‑19 pandemic, reduced exports and a slowdown in the global economy. He also identified common challenges in implementing projects funded by public debt, including delays in fund approval through the defunding system, untimely fulfilment of loan conditions, delays in signing loan agreements, and setbacks in procurement planning, execution and reporting.
During the audit, the CAG uncovered several irregularities in expenditure management by various entities. He cited mismanagement of funds released by the Ministry of Lands, Housing and Human Settlements Development to councils—TSh 26.03 billion intended for surveying, planning and titling of land. For example, Shinyanga Municipal Council, Shinyanga District Councils and Dodoma City Council used TSh 2.35 billion on activities unrelated to land surveying, planning and titling. Similarly, Musoma District Council, Shinyanga Municipal Council, Tabora Municipal Council and Mtwara Municipal Council generated TSh 2.02 billion in revenue but spent TSh 1.37 billion on other activities, funds that should have been refunded to the Ministry of Lands, Housing and Human Settlement Development.
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