Annual general report of the controller and - Parliament of Tanzania

may be on a downward trend in the years to come and our
business dealings with other countries will also be affected.
Furthermore, as the global financial crisis bites deeper in
the world’s economies the demand for our exports and
other services like tourism will slump and therefore affect
the Country’s cash inflows.
These signs of economic challenges require coordinated
action at the national level. We need to start taking
measures and be prepared for these challenges.
Recommendations
Tanzania government and its entities should:
• Mobilize internal financial resources – improvement in
revenue collections in non- tax revenue is required,
curbing tax loopholes in evading tax revenue especially on
fuel, tax exemptions and the like, expanding the tax base,
and improving tax systems to enhance compliance.
• Institute expenditure controls – the government should
streamline its expenditure pattern to avoid unnecessary
expenditures such as those already taken on purchase of
luxurious motor vehicles and minimization of seminar
expenses. Also, recurrent expenditure trend can be
monitored so that additional revenue collections are
ploughed back to development activities.
• Better use of our natural resources – the use of our natural
resources should get the outmost attention so as to get the
maximum value from natural resources.
• Cease opportunities – The government can explore areas
that we have an added advantage and work on such
opportunities for the betterment of our economy. Such
areas as improving harbour services to attract more use of
it by our neighbours, constructing dams for irrigation
activities and improving sea fishing.
14.13 Risk management
Risk is the possibility of an organization’s operations to be
affected by various factors such as technology, economy,
political, financial, social and operational and is expressed
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