Parliament has approved the Government’s TZS 62.33 trillion budget for the 2026/27 financial year, clearing the way for the implementation of development projects, public services and economic programmes planned for the coming year.
The budget was passed with overwhelming support after 385 Members of Parliament voted in favour, representing 97.66 percent of all votes cast during a session in Dodoma on June 23.
Speaker of Parliament, Mussa Azzan Zungu, announced that 393 lawmakers participated in the vote. Eight legislators voted against the budget, while another eight were absent and did not take part in the voting.
The approval came after weeks of parliamentary scrutiny of the government’s revenue and expenditure proposals and the subsequent passage of the Appropriation Bill, which authorises the government to spend public funds during the 2026/27 fiscal year.
Speaking after the vote, Mr Zungu said Parliament would continue monitoring implementation of the budget to ensure that approved funds are directed towards projects and programmes that benefit citizens.
“Parliament has now authorised the Government to use these funds. What remains is effective implementation to ensure the intended projects are delivered and bring tangible benefits to wananchi,” he said.
Finance Minister Khamis Mussa Omar had requested Parliament to approve the TZS 62.33 trillion spending plan, which is 10.3 percent higher than the TZS 56.5 trillion budget approved for the 2025/26 financial year.
The increase reflects the government’s plans to expand investment in infrastructure, social services and productive sectors while sustaining economic growth.
According to budget estimates, domestic revenue is expected to finance the bulk of government operations.
Total revenue collections are projected at TZS 46.79 trillion, including TZS 36.99 trillion from taxes and TZS 9.24 trillion from non-tax sources, which include collections by local government authorities.
Development partners are expected to contribute grants amounting to TZS 563.1 billion.
The government projects that 74.2 percent of the entire budget will be financed through domestic resources, underscoring efforts to strengthen self-reliance and reduce dependence on external funding.
Planned expenditure and investment in non-financial assets are estimated at TZS 54.5 trillion, excluding debt principal repayments.
A significant portion of the budget will go towards public service delivery. Employee salaries and pension contributions are projected at TZS 10.13 trillion, while TZS 5.22 trillion has been allocated for goods and services required by government institutions.
Interest payments on public debt are estimated at TZS 6.86 trillion, while transfers and subsidies to various institutions and programmes will amount to TZS 25.32 trillion.
Social benefits and assistance are projected at TZS 1.01 trillion, while TZS 2.33 trillion has been allocated for investment in non-financial assets.
The government has projected a budget deficit of TZS 7.71 trillion, which will be financed through domestic and external borrowing in line with the Medium-Term Debt Management Strategy.
To bridge financing needs and support development spending, the government plans to borrow TZS 15.54 trillion during the financial year.
Of this amount, TZS 6.56 trillion will be sourced from the domestic market, TZS 6.55 trillion from concessional external loans and TZS 2.43 trillion from commercial external borrowing.
At the same time, the government expects to repay TZS 7.84 trillion in maturing debt obligations.
Attention now shifts to the Finance Bill, 2026, which Parliament is scheduled to debate and pass on June 24.
The legislation will provide the legal framework for implementing tax measures and other revenue proposals contained in the budget.
With the budget now approved, the focus will move from debate to execution as the government seeks to translate its spending plans into improved services, infrastructure development and economic opportunities across the country.
