The Tanzanian government, in itssecond annual budget since embarking on an economic recovery
program inspired by the International Monetary Fund, announced
increases in fuel prices and sales tax and higher levies on
government services.
    Finance Minister Cleopa Msuya said the government expected
to spend 77.33 billion shillings in the financial year 1987/8,
39 pct more than this year's estimate. Revenue would provide
48.84 billion shillings, leaving a deficit of 28.49 billion to
be financed through domestic and foreign loans.
    This year's budget initially projected a deficit of only
3.35 billion shillings but in mid-year the government had to
impose new taxes to keep the deficit roughly on target. No
figure for the final deficit was avaialble.
    The budget gave civil servants a 20 pct pay rise with
effect from July 1, to compensate for inflation of more than 30
pct.
    Msuya said regular petrol would go up 52 pct, with similar
increases in the cost of premium and kerosene. Diesel would
rise by 75 pct.
    The higher levies affect official transactions such as road
tolls, vehicle transfers and various licence fees, he added.
 REUTER
