The government has reassured Tanzanians that no sector will experience a funding shortage as a result of policy changes by some countries that aim to reduce their financial support for developing nations, including Tanzania.
This statement was made in Parliament in Dodoma by the Minister of Finance, Hon. Dr. Mwigulu Lameck Nchemba (MP), in response to concerns raised by Members of Parliament during the 19th sitting of the 12th Parliament's sixth session.
Dr. Nchemba explained that the government had conducted a comprehensive assessment across all sectors with the help of a team under the Prime Minister.
Following this, the government began taking proactive steps in response to policy changes by certain countries, which had reduced financial aid to developing nations like Tanzania.
"We faced a funding gap of approximately 220 billion shillings in the health sector, which we had expected from development partners. The government has already allocated 98 billion shillings to cover this shortfall, and we are continuing the assessment in other sectors. Funds will be allocated to areas where they are urgently needed," Dr. Nchemba said.
Additionally, Dr. Nchemba commended President Samia Suluhu Hassan for her exceptional leadership, particularly during a period when the global economy has faced persistent crises over the past four years.
He mentioned the challenges brought about by the COVID-19 pandemic, foreign exchange shortages, and the shifting external policies of certain nations. Despite these challenges, the government is taking decisive action, with confidence that the country will navigate through these tough times.
"The health sector has been the most affected, but the government will continue to implement measures, including investing in local production of medicines and medical equipment that were once sourced from foreign partners," he added.
Dr. Nchemba also highlighted that part of the upcoming development plan and budget, to be presented in the current parliamentary session, would focus on allocating funds to local pharmaceutical manufacturing industries.
This would help Tanzania reduce its dependence on external sources and build self-sufficiency in the health sector.
"Our country, with its resources and the significant investments made in the health sector, has the potential to eliminate diseases such as malaria, tuberculosis, and other related illnesses," Dr. Nchemba stated.
He also revealed that some funds would be allocated to the Universal Health Insurance Scheme, as instructed by President Samia Suluhu Hassan.
To ensure effective resource management, Dr. Nchemba emphasized that the government would implement a strategy to control spending in areas with lower priority while directing funds to essential sectors like infrastructure, health, education, water, electricity, and other critical sectors that drive economic growth.
Dr. Nchemba also pointed out that Tanzania had made remarkable progress in large-scale projects, such as the Mwalimu Nyerere Hydroelectric Project and the Standard Gauge Railway (SGR).
These are projects that some major countries do not have. Currently, over 722 kilometers of the railway are operational, with much of it, especially the section from Dar es Salaam to Dodoma, already in use.
He noted that the remaining sections of the railway are already contracted to contractors, and funding for these projects is in the final stages to ensure completion.
Other key projects mentioned by Dr. Nchemba include the Kigongo-Busisi Bridge, which has been completed and is now ready for use, as well as the oil pipeline project from Hoima to Tanga. In these projects, Tanzania has largely met its obligations.
Furthermore, Dr. Nchemba shared that discussions had taken place with sectoral ministers in areas such as roads, water, agriculture, and other sectors. Funds have already been allocated, and more will continue to be provided.
Emphasizing the need for increased revenue to support these initiatives, Dr. Nchemba revealed that the government had partnered with the Tanzania Revenue Authority (TRA) to enhance taxpayer education.
This effort aims to encourage voluntary tax compliance, in line with President Samia Suluhu Hassan's directives. Educational campaigns will be carried out in schools, sports events, and other public spaces to increase awareness and promote tax payment.
