ZANZIBAR current account for the year ending June 2012 improved with a surplus of 11.3 million US dollars (over 18bn/-) compared to a deficit of 19.8 million US dollars (about 32bn/-) recorded in the corresponding last year, thanks to an increase in export of goods and services.
Bank of Tanzania (BoT) monthly economic review for June this year shows that the deficit in the trade account also narrowed to 83.4 million US dollars (over 133bn/-) from 98.4 million US dollars (over 157bn/-) in the year ending June 2011.
Exports of goods and services in the period under review reached 237.3 million US dollars (about 380bn/-) up from 152.8 million US dollars (over 244n/-) in the previous year.
“The increase in the value of clove exports that fetched premium price in the world market largely contributed to the outstanding performance,” said the central bank report.
The average clove export price rose to 12,880.7 US dollars (over 20m/-) per tonne from 3,638.8 (about 6m/-) in the year ending June 2011, stated the report.
The value of imports of goods and services during the period under review went up by 25.3 per cent to 272.5 million US dollars (about 436bn/-), mainly because of the rise in the value of capital and consumer goods entering the country.
In the meantime, the services account (Net) recorded a surplus of 48.2 million US dollars (77.12bn/-) during the year ending June 2012, compared to a surplus of 33.7 million US dollars (53.92bn) recorded in the corresponding period in 2011.
Total foreign receipts increased by 21.1 per cent to 166.8 million US dollars (266.88bn/-) from 137.7 million US dollars (220.32bn/- ) of the previous year, reflecting increased tourism related activities. Meanwhile, foreign payments also increased by 14 per cent to 118.6 million US dollars (about 190bn/-) from 104 million US dollars (over 166bn/-).
Furthermore, revenue collections amounted to 15.8bn/-, and were below the target by 4.2 per cent. Tax collections amounted to 15bn/- , below the target by 2.6 per cent and accounted for 94.9 per cent of the total revenue collections.
The BoT report noted further that tax on imports surpassed target by 41.7 per cent due to increased taxable imports during the month under review. Non-tax revenue amounted to 0.8bn/-, or 20.0 per cent below the target.
The government expenditure during the month under review amounted to 26.7bn/-, out of which recurrent expenditure accounted for 76.4 per cent and the balance was development spending. Out of total recurrent expenditure, wages and salaries amounted to 11.2bn/-, slightly above estimate by 0.9 per cent, while other charges amounted to 9.2bn/- as estimated.
Meanwhile, development expenditure amounted to 6.3bn/- and was below the estimate by 36.4 per cent, mainly on account of low outturn of donor inflows for development projects.
Out of total development expenditure, foreign funded component accounted for 68.2 per cent and the balance was local contribution.