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The Prime Minister of Tanzania, Frederick Sumaye, has said that tough pre-conditions were making it difficult for Tanzania to take advantage of debt relief under the Highly Indebted Poor Countries (HIPC) initiative, the ‘Guardian’ newspaper reported on Tuesday. Sumaye said that strict discipline would be needed in all government departments if Tanzania was to fulfil conditions linked to debt relief requiring strict economic management, clear programmes for social services and agricultural development, and better management of government revenues. “We have a long way to go. This is because we must have clear poverty reduction and HIV/AIDS control strategies,” he added.
Sumaye was quoted as saying that 42 percent of the national budget was provided by handouts from international donors. Tax revenues were the lowest in the region, at a modest 12 percent of Gross National Product (GNP) compared with 20 percent in some neighbouring countries, he said. Sumaye acknowledged that the World Bank-funded Tanzania Social Action Fund (TASAF) had been effective in reducing poverty in many parts of the country. The TASAF had been funding infrastructure development, irrigation projects, and water and health projects throughout the country, he added.
Tanzania has been receiving interim debt relief under the HIPC initiative since April 2000.
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