Luhaga Mpina, has raised concerns over the 2026/27 National Budget, saying key economic challenges affecting citizens have not been fully addressed.
Mpina said rising public debt, high fuel prices and expanding tax exemptions continue to place pressure on ordinary Tanzanians, despite government efforts to stabilize the economy.
He noted that the national debt has increased significantly in recent years, reaching over Sh53 trillion in the past five years.
He said the main concern is that such borrowing has not translated into visible development projects that directly improve citizens’ lives.
He also pointed out that a large portion of the debt is external, exposing the economy to risks linked to foreign exchange fluctuations, especially the weakening of the shilling against major currencies.
Mpina called for stronger transparency and accountability in public borrowing, saying citizens and Parliament should clearly understand how loans are acquired and how they are spent. He also urged independent audits to ensure proper use of borrowed funds.
“Public borrowing must lead to tangible development that benefits citizens. Transparency is key to public trust and accountability,” he said.
On fuel prices, Mpina said the 2026/27 budget has not provided a long-term solution to the persistent high cost of fuel, which continues to affect transport costs, food prices and the overall cost of living.
He noted that despite government subsidies aimed at easing fuel prices, many citizens have not experienced meaningful relief. He also observed that global fuel prices have declined at various points, but local prices have not fully reflected these changes.
Mpina questioned the structure of fuel procurement and distribution, particularly the involvement of intermediary companies, saying it may have contributed to higher costs instead of reducing them.
He called for a thorough review of fuel contracts and procurement systems to ensure efficiency, fairness and value for money.
On tax policy, Mpina opposed proposed new tax exemptions for selected investors, warning that such measures could reduce government revenue and increase the burden on ordinary taxpayers.
He said while investors benefit from incentives, citizens continue to face multiple taxes and levies, including those affecting motorcycles, vehicles, small businesses and basic economic activities.
Mpina also raised concerns over limited transparency in investment and natural resource agreements, saying citizens have a right to know how national resources are being managed.
He emphasized that transparency, accountability and fairness are essential to ensure that economic growth benefits all Tanzanians.
Mpina concluded by urging the government to strengthen oversight in public debt management, fuel pricing systems and taxation policies.
He said the success of the national budget should be measured by its impact on citizens’ lives, including improved services, reduced cost of living, job creation and efficient use of public resources.
