Tanzania Budget 2021-2022
Tanzania’s approved budget for 2021-2022 amounts to TZS 36.66 trillion, +5% from TZS 34.88 trillion allocated in the 2020-2021 budget.
In March 2022, The Parliament of Tanzania has approved that the Government increases its national budget for the financial year 2021/22 by more than TZS 1.3 trillion, to TZS 37.98 trillion, thanks to the interest-free loan from the International Monetary Fund (IMF) worth TZS 1.3 trillion equivalent to USD 567.3 million.
The original budget will be mainly financed by domestic revenues for TZS 26.0 trillion (71%), grants from development partners for TZS 2.9 trillion (8%), domestic loans for TZS 5.0 trillion (14%), and conditional external commercial loans for TZS 2.4 trillion (7%).
Most of the budget (63%) will be allocated for recurrent expenditure, while 37% will be destined for development projects.
The key beneficiary economic sectors of the new budget will be construction, energy, and infrastructure.
2021/22 will be the first year in the implementation of the 3rd Tanzania Five-Year Development Plan (FYDP III).
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: 14th March 2022
Sources: Ministry of Finance of Tanzania, Parliament of Tanzania