Dodoma. The Government is expected to table the national budget for the 2026/27 financial year in Parliament today, June 11, 2026, at 4:00 pm, in line with the East African Community agreement of presenting budgets on the second Thursday of June.
Speaking to journalists in Dodoma on June 10, 2026, Finance Minister Ambassador Khamis Mussa Omar described the budget as historic, saying it is the first to operationalize the National Development Vision 2050, the Fourth Five-Year National Development Plan, and the ruling CCM Party’s 2025–2030 Election Manifesto.
The Government plans to collect and spend Sh62.3 trillion during the 2026/27 fiscal year, marking an increase of nearly 10 percent from the Sh56.49 trillion budget approved for 2025/26.
Of the total amount, Sh46.8 trillion is expected to be generated through domestic revenue collection to finance the majority of planned government expenditure. Ambassador Omar said the country has continued to record strong improvements in domestic revenue performance.
“In the 2025/26 financial year, domestic revenue collection has shown encouraging progress, with collections largely meeting the set targets,” said Ambassador Omar.
According to the minister, the budget seeks to accelerate economic and social transformation, expand employment opportunities, attract investment, and improve the welfare of citizens.
He added that priority spending areas will include the continued construction of the Standard Gauge Railway (SGR), expansion and rehabilitation of road infrastructure, improvement of water services, implementation of energy projects, and investment in human capital development and skills training.
The tabling of the main Government budget will be preceded by the presentation of the 2025 Economic Survey and the economic outlook for 2026. The report is expected to be presented in Parliament earlier in the day by the Minister of State in the President’s Office for Planning and Investment, Professor Kitila Mkumbo.
Ambassador Omar further said the budget preparation process involved consultations with various stakeholders through the Task Force on Tax Reforms and a high-level advisory think tank committee, which submitted a total of 727 recommendations for consideration.
Of the proposals received, 125 were adopted without changes, 121 were revised before approval, while 295 were rejected following detailed analysis and evaluation.
The Government’s strong focus on domestic resource mobilization has also raised public expectations that new taxes and levies could be introduced in the 2026/27 budget. Analysts also expect the Government to maintain its growing reliance on domestic borrowing to finance development projects and budgetary needs.
Recent figures show domestic debt has more than doubled from Sh14.73 trillion in 2020 to Sh38.45 trillion, with its share of total public debt increasing from 26.7 percent to 33.6 percent during the same period. A significant portion of the debt is held by commercial banks and pension funds through long-term Treasury bonds.
The International Monetary Fund (IMF) has previously cautioned developing countries against excessive dependence on domestic borrowing, warning that repayment difficulties could expose financial institutions and the wider economy to increased financial risks.
