Budget

Tanzania Budget 2020-2021

Tanzania’s budget for 2020-2021 amounts to TZS 34.88 trillion, 37% of which (TZS 13 trillion) is allocated to development projects. The remaining 63% (TZS 22.10 trillion) is dedicated to recurrent expenditure mainly servicing government debt and wages and salaries.

Tanzania’s 2020-2021 budget funds will be allocated to:

– Rehabilitation of infrastructure damaged by heavy rainfall and fight against COVID-19
– Flagship Projects: construction of central railway line to standard gauge, construction of Julius Nyerere Hydropower Project (2,115 MW), strengthening Air Tanzania Company Ltd, facilitate construction of Crude Oil Pipeline Project from Hoima (Uganda) to Chongoleani, Tanga (Tanzania), continue with the construction and rehabilitation of railways, roads, bridges, airports, ports, ships in major lakes and ferries; and strengthening of electricity and gas production, transmission and distribution infrastructure including expediting rural electrification
– Social Services: health, education and skills, clean water and sanitation
– Agriculture and Industry: focus on projects that are expected to utilize significant amount of local raw materials including agriculture, mining and natural gas in order to promote value chains. The projects include building of a Natural Gas Processing Factory, establishment and development of Special Economic Zones and industrial clusters, processing industries in agriculture, livestock and fisheries, minerals beneficiation, strengthening mining markets and sustainable management of forest resources
– Other Priority Areas: continue to improve the livelihood of poor households

The budget plan indicates that TZS 24.07 are to be raised by domestic sources. Out of that amount, the Government plans to collect tax revenue amounting to TZS 20.33 trillion, nontax revenue TZS 2.92 trillion, and revenue from Local Government Authorities (LGAs) own sources TZS 815.0 billion.

The Government plans to borrow TZS 4.90 trillion shillings from the domestic market. Further, TZS 3.04 trillion is expected to be borrowed from external non-concessional sources in order to speed up the implementation of infrastructure projects. Development Partners are expected to contribute grants and concession loans amounting to TZS 2.87 trillion, equivalent to 8.2% of the Government budget.

During the presentation of the 2020/21 budget in June, Hon. Mpango reminded that in the 2019/20 budget, the Government projected to collect TZS 33.11 trillion from both internal and external sources, and by April 2020 TZS 26.13 trillion has been collected, equivalent to 92.4% of the annual target.

As of April 2020, the Government had released TZS 7.63 trillion for the implementation of development projects equivalent to 65.9% of the target.