Macroeconomic Forecast Tanzania

BMI View: We are forecasting a significant deterioration of the Tanzanian fiscal balance in the 2009/10 (July-June) fiscal year. We see expenditure rising 23.7% from TZS7,265bn in 2008/09 to TZS8,988bn in 2009/10, even as total revenues rise just 5.1% to TZS6,263bn. This will lead to a doubling of the nominal fiscal deficit, pushing the deficit as a percentage of GDP up to 9.7% in 2009/10. We see the deficit slowly narrowing back to sustainable levels thereafter

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