In June 2023, the Tanzanian parliament approved a government budget of TZS 44.4 trillion (about USD 18.4 billion) for the 2023/2024 financial year that starts on 1st July 2023 and ends on 30th June 2024.
The total budget for 2023-2024 has been increased by 6.9% from TZS 34.88 trillion allocated in the 2022-2023 budget.
Priority Areas For The 2023-2024 Budget
Out of TZS 44.4 trillion, TZS 30.31 trillion (68%) are for recurrent expenditure, while TZS 14.08 trillion (32%) are for development expenditure, which includes development expenditures for various projects both in Central Government and Local Government Authorities.
Energy and transportation infrastructure projects will drive the growth of development expenditure.
Priority areas include the completion of flagship and strategic projects such as: continuing the construction of the Standard Gauge Railway (SGR); revamping Air Tanzania Company Limited (ATCL); continuing the construction of the Julius Nyerere Hydropower Project (2,115 MW); construction of Ruhudji (358 MW) and Rumakali (222 MW) hydropower plants; development of the Liquefied Natural Gas (LNG) project; construction of the John Magufuli Bridge (Kigongo-Busisi); construction of roads and bridges; developing special economic zones including the strategic investment area in Bagamoyo.
Financing Of The 2023-2024 Budget
Domestic revenues are projected to be TZS 31.38 trillion, equivalent to 70.7% of the total budget.
Out of the total domestic revenue to be collected, the Tanzania Revenue Authority (TRA) is estimated to collect TZS 26.73 trillion and non-tax revenue collected by Ministries, Departments, Institutions and Local Government Authorities is estimated at TZS 4.66 trillion.
Grants and concessional loans from Development Partners are estimated at TZS 5.47 trillion. In addition, the Government expects to borrow TZS 5.44 trillion from the domestic market, of which TZS 3.54 trillion will
be for rolling over of maturing Government Treasury Bills and Bonds and TZS 1.90 trillion for financing development projects.
The Government also expects to borrow TZS 2.10 trillion from non-concessional sources for the purpose of accelerating the implementation of development projects.
Objectives of FYDP III
(i) Increases the GDP annual growth rate from 6% in 2021 to an average of 8% by 2026;
(ii) Increases internal revenues from 15.9% of GDP in 2021/22 to 16.8% in 2025/26;
(iii) Inflation to remain low between 3.0% and 5.0% over the medium term;
(iv) Foreign exchange reserves to meet the requirements of imports and foreign service for a period of not less than four months;
(v) The creation of eight million new jobs in the private sector between 2021 and 2026.
Last Updated: 7th July 2023