A new policy on donor funding will see 50 per cent of funds from development partners invested into infrastructure.
Minister for National Planning and Monitoring, Richard Maru, says the new policy is being written to complement the goals of the ambitious MTDP III.
This is one of the avenues the government will use to fund the major projects outlined in the MTDP III.
“We have decided to write a new policy for our donor partners which now require that 50 per cent of all donor aid must go for infrastructure development. Actual roads, actual bridges, actual schools.
"The days of the boomerang aid, that goes back in TA’s, has to be a thing of the past. We want our partners to understand we need you to fund our development plan,” said Minister Maru.
He added changes to the Tax Credit Scheme will be done so that the funding is available to fund the plan.
“The other strategy we are trying to pursue is to increase Tax Credit to 2 per cent on average. We are going to launch that very soon.
“We are going to increase Tax Credit and we hope to fund many of the big ticket items with Tax Credit from our partners,” said Maru.