The Minister of Finance, Dr. Mwigulu Nchemba, has presented the budget framework and expenditure ceiling for the 2025/26 financial year to the Parliamentary Budget Committee in Dodoma. 

The government plans to collect and spend TZS 57.04 trillion, marking a 13.4% increase from the 2024/25 budget, which stood at TZS 50.29 trillion.

The upcoming budget is the final one under the Tanzania Development Vision 2025. The government aims to generate 69.7% of its revenue from domestic sources to reduce reliance on unpredictable and high-cost conditional funding.

“The 2025/26 budget will be financed by TZS 40.97 trillion in revenue and TZS 16.07 trillion from domestic and foreign loans,” said Dr. Nchemba. “This includes TZS 31.83 trillion from tax revenue, TZS 6.23 trillion from non-tax revenue, TZS 1.68 trillion from local government revenues, and TZS 1.22 trillion from grants.”

He emphasized that the budget will support the final phase of the 2025 Development Vision and the 2025/26 Development Plan. Key spending priorities include debt servicing, the government wage bill, the general elections, strengthening democracy, maintaining peace and security, and preparations for the AFCON 2027 tournament.

Meanwhile, the Minister of State in the President’s Office for Planning and Investment, Prof. Kitila Mkumbo, addressed concerns about declining aid from developed nations. He reassured the parliamentary committee comprising all Members of Parliament that the government is prepared to mitigate the impact of reduced foreign aid.

“We are strengthening alternative financing mechanisms, such as public-private partnerships, to increase private sector participation in the economy,” said Prof. Mkumbo. “Honorable Members of Parliament need not worry. The government is fully committed to ensuring that reduced foreign aid strengthens our self-reliance and efficiency.”

The Parliament of the United Republic of Tanzania is expected to convene in the coming weeks to discuss and approve the budget and fiscal plans for 2025/26.