June 2 (Bloomberg) -- Tanzania’s budget for the 2011-2012 financial year may be 12.8 trillion shillings ($8.3 billion), up from 11.6 trillion shillings for the year ending this month, Zitto Kabwe, the chairman of the parliamentary public organizations and accounts committee, said in a phone interview yesterday.
“One third of it will go to development, which is a reduction by 800 billion shillings from the previous budget,” said Kabwe, an opposition member of parliament and shadow minister of finance.
Tanzanian Finance Minister Mustafa Mkulo said he would only comment after presenting government’s budget proposals to Parliament on June 8.
In an alternative budget, Kabwe said he will propose higher taxes to be paid by mining companies, and cuts on the recurrent budget. He will also seek a reduction in tax exemptions to 1 percent of gross domestic product from about 4 percent.
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