The ministry of finance has assured Tanzanians that they should not anticipate big budget deficit despite the current power supply and food crises throughout the country.

Gray Mgonja, permanent secretary to the Treasury under the finance ministry, told local media over the weekend that the ministry was not anticipating big deficit in the current government budget despite spending more on subsidizing power supply and on relief food.

The Tanzanian government has spent in February 30 billion shillings (25.8 million U.S. dollars) on subsidizing the Tanzania Electric Supply Company, the country's sole power supply firm, to buy electricity from private companies.

The country also spent 2.4 billion shillings (2 million dollars) on procuring and delivering relief food to regions hit hard by the current drought.

"We have achieved such a strong economy that is capable of absorbing budget external shocks without major problems," said Mgonja.

The permanent secretary said that the country has the capability to deal with any eventuality of budgetary deficit not exceeding 2 percent of the country's gross domestic product.

Tanzania has proclaimed a 4.176-trillion-shilling (3.6 billion dollars) spending plan for fiscal 2005/2006 to boost the country's economic growth that is projected to increase by 7.2 percent.

Source: Xinhua