The government has pledged to revise its medium-term budget guidelines following concerns raised by MPs over public spending, mounting unpaid bills and delays in implementing development projects.
The review of the 2026/27–2028/29 Medium-Term Plan and Budget Guidelines is expected to strengthen financial discipline, improve project management and ensure public resources are used more efficiently.
Finance Minister Ambassador Khamis Mussa Omar gave the assurance in Parliament while responding to MPs' contributions during debate on the proposed guidelines, saying the government would examine recommendations from the Parliamentary Standing Committee on Budget and individual legislators.
“We have received all the advice and recommendations presented by the Parliamentary Standing Committee on Budget and Honourable Members. The government will analyse all the proposals and develop short- and long-term strategies for their implementation,” he said.
The debate raised seven key areas requiring government attention, including controlling public expenditure, improving revenue collection by public institutions, financing and managing development projects, settling outstanding debts and expanding the use of technology in public financial management.
Other concerns centred on strengthening financial discipline and improving the identification and implementation of projects through Public-Private Partnerships (PPPs).
The commitment comes as the government seeks to balance ambitious infrastructure investment with tighter control of public spending and timely payment of contractors and service providers.
On PPPs, Ambassador Omar said the government was reviewing the PPP Act, Cap 103, to address bottlenecks in project preparation and implementation, including delays in negotiating and agreeing on contractual terms.
He said the reforms would help ensure proposed projects were properly prepared and financially viable to attract private investors.
During the 2026/27 financial year, 10 PPP projects with a combined investment value of TZS8.6 trillion were at various stages of implementation.
They include the first and second phases of the Bus Rapid Transit (BRT) system, construction and operation of the DDC Kariakoo commercial building, establishment of mandatory vehicle inspection centres, improvement of Dar es Salaam Port operations and rehabilitation and operation of the Tazara railway.
The portfolio also includes construction of a modern cargo transport services centre under the Tanzania Buildings Agency (TBA).
Looking ahead, the minister said the government planned to announce additional projects for implementation under the PPP arrangement in the 2027/28 financial year.
Among the proposed investments are a railway linking the Port of Mtwara to Mbamba Bay, with a branch line from Songea to Ludewa, and another connecting the Port of Tanga to Arusha and Musoma.
The government also plans to pursue the 222-megawatt Rumakali hydropower project.
The projects are expected to expand infrastructure investment through private-sector participation, although their implementation will depend on successful project preparation and agreements with investors.
The settlement of government debts emerged as another major issue during the parliamentary debate, with MPs proposing that monthly allocations for paying outstanding bills owed to contractors, suppliers and service providers be increased threefold.
They want the current allocation of TZS100 billion raised to TZS300 billion a month, alongside improvements in the verification process to ensure legitimate claims are paid promptly.
The concern reflects the importance of timely government payments to businesses involved in public projects, particularly contractors responsible for delivering roads, water infrastructure and other essential services.
Responding, Ambassador Omar said the government had directed public institutions to prioritise ongoing projects to prevent the accumulation of new debts and avoid delays in implementation.
He cited Treasury Circular No. 1 of 2026/27, which provides guidance on the implementation of the government budget.
The minister said TZS348 billion had been released by October 2026 to settle outstanding obligations.
Of this amount, TZS224.7 billion, equivalent to 65 per cent, went towards payments owed to contractors implementing water and road projects.
On the use of technology, Ambassador Omar said the government was continuing to improve systems for collecting tax and non-tax revenue, including IDRAS, TANCIS, GePG, TAUSI and e-Ardhi.
He said regulations governing digital payments had also been published for selected areas as part of efforts to improve transparency, revenue collection and accountability in public spending.
The proposed review will further examine macroeconomic developments, implementation of the 2026/27 budget, spending priorities and medium-term budget projections.
It will also cover government operational costs, management of public contracts and participation of local companies in public procurement.
These measures are intended to improve value for money and ensure public expenditure delivers tangible results.
Meanwhile, Minister of State in the President's Office (Planning and Investment), Prof Kitila Mkumbo, said his ministry would work with the Ministry of Finance to address recommendations from MPs and the Budget Committee.
He said the proposals would be considered in preparing the 2027/28 national budget.