By Alfred Zacharia
Tanzania’s Parliament has passed the government’s TZS 56.49 trillion budget for the 2025/26 financial year, receiving overwhelming support from Members of Parliament.
Out of 378 MPs, 373 voted in favour, representing 98.7 percent approval.
The budget aims to accelerate economic growth, expand social services, and complete major infrastructure projects.
It also sets the stage for key national events, including the 2025 General Election and the 2027 Africa Cup of Nations (AFCON), which Tanzania will co-host.
Finance Minister Dr. Mwigulu Nchemba told Parliament that the budget is built on the goals of the Third Five-Year Development Plan.
The government expects to grow the economy by focusing on productivity, improving human capital, and delivering key development results.
To support this, the government has allocated Sh10.24 trillion for sectors that contribute directly to national income and job creation.
These include agriculture, manufacturing, energy, and trade. Agriculture alone has been allocated TZS 1.9 trillion, a rise of more than 200 percent from the 2021/22 budget.
The government also plans to manage inflation by strengthening domestic production and promoting the use of natural gas and alternative energy. This is expected to reduce dependency on imported petroleum products and stabilize prices of key goods.
The budget also responds to external economic challenges. Dr. Nchemba said efforts will be made to increase the local production of essential goods such as fertilizer, sugar, and cooking oil. This is part of a wider strategy to protect the economy from global market shocks.
Funding for the TZS 56.49 trillion budget will come from three main sources.
Domestic revenue will contribute TZS 40.47 trillion, including TZS 32.31 trillion from tax collections.
External grants will provide TZS 1.07 trillion, while loans will cover the remaining Sh14.95 trillion. Of the borrowed funds, TZS 6.27 trillion will come from domestic lenders and TZS 8.68 trillion from external sources.
Government spending includes TZS 7.71 trillion for salaries and pensions, TZS 7.81 trillion for procurement of goods and services, and TZS 6.49 trillion for interest payments on debt.
Another TZS 23.04 trillion will be used to support public institutions and local governments, while TZS 7.72 trillion will be allocated for repaying loan principal amounts.
Dr. Nchemba used the opportunity to thank MPs for their contributions during the budget debate. He said the discussions helped shape a financial plan that addresses national needs and reflects the priorities of citizens.
He also noted that the government has made progress in delivering promises made in the 2020 CCM election manifesto.
The minister said the current Parliament has passed several important laws and development plans. He commended MPs for supporting President Samia Suluhu Hassan’s efforts to drive inclusive growth and deliver tangible results across sectors.
With the 2025/26 budget now approved, the focus shifts to effective implementation and ensuring that the planned projects and reforms benefit Tanzanians.
The budget reflects the government’s commitment to fiscal responsibility, investment in people, and long-term development.