Montreal, Quebec, June 16th, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: The Zanzibar government yesterday presented a Sh613.76 billion budget that has avoided tax increases and set aside more funds for development projects than recurrent expenditure. Tabling the budget in the House of Representatives, the minister of State, Mr. Omar Yusuf Mzee, said Sh374.91 billion has been set aside for development projects while the recurrent budget will amount to Sh234.17 billion.
The 2011/12 budget is an increase of 27.6 per cent from the Sh444 billion of the previous financial years.
The Zanzibar budget is a departure from traditional budgets that allocate more spending on recurrent expenditure.
Tanzania’s Budget for the 2011/12 financial year carried on with the tradition, much criticized by the Opposition, of allocating more money to the recurrent than the development budget.
The Sh13.5 trillion budgets tabled by the Finance and Economic Affairs minister Mustafa Mkulo last week allocated 63.6 per cent of the whole budget to recurrent expenses, while development projects received 36 per cent of the whole budget.
Mr. Mzee said the government has decided not to increase any taxes, and widen the tax base to provide relief to the people from rising cost of living.”In the 2011/12 financial year the government wants to put more emphasis on widening the tax base and increasing compliance than increasing tax rates,” he said.
One way of increasing taxes would be retaining pay as you earn taxes for public servants working in union institutions in Zanzibar. In the past the taxes was remitted to Tanzania mainland from Zanzibar but it was agreed through negotiations that from the 2011/12 financial year the money would remain in Zanzibar.
Providing a further breakdown of the revenue collection, Mr. Mzee said the Zanzibar government would collect Sh221.24 billion from various domestic sources including Sh10.22 billion from taxes and Sh11.02 billion from non-taxes.
More revenue would come from the Tanzania Revenue Authority and the Zanzibar Revenue Board. TRA would collect Sh100.58 billion while ZRB will collect Sh120.66 billion.
About Sh30.28 billion would come from the general Budget Support initiative through the Union government constituting 4.5 per cent of the whole budget. The budget will also try to contain the inflation rate which increased to an annual average of 7.9 per cent in 2010 from 6.1 per cent of the previous year.
More than half of the Zanzibar budget will be funded by development partners, according to Mr. Mzee. About Sh340 billion will be loans and grants from donors. One of the priorities in the new budget would be empowerment of entrepreneurs through provision of cheap loans. The aim is to reduce poverty rate in the isles.
In the same vein the implementation of the budget will follow the lines of the Zanzibar Strategy for Growth and the Reduction of Poverty, the Millennium Development Goals, the CCM manifesto and the Vision 2020.
The Zanzibar government also plans to improve the production of seaweeds, which has proven to be a significant breadwinner to many communities living in the seashores.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
[email protected]
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as “anticipates”, “believes”, “could”, “expects”, “intends”, “may”, “should” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
