Budget
The National Budget 2025/26 of Tanzania amounts to TZS 56.49 trillion (USD 22.08 billion), an increase of approximately 12.3% from the TZS 50.28 trillion (USD 19.65 billion) budget for 2024/25.[1]
The Parliament of Tanzania overwhelmingly approved the National Budget 2025/26 in June 2025 under the theme "Inclusive Economic Transformation through Domestic Resource Mobilization and Resilient Strategic Investment for Job Creation and Improved Livelihoods".[1]
The 2025/26 budget marks the final year of implementing the Third Five-Year Development Plan (2021/22—2025/26) and aligns directly with the Annual National Development Plan 2025/26.
The figure reflects significant growth from TZS 34.9 trillion six years earlier, totaling a 70% budget increase over the past six years.
FY 2025/26 Budget Plan
The FY 2025/26 budget amounts to TZS 56.49 trillion (USD 22.08 billion).[1]
This represents an increase of approximately 12.3% from the TZS 50.28 trillion (USD 19.65 billion) budget for 2024/25.
The budget is expected to be financed by domestic revenue of TZS 40.47 trillion, grants of TZS 1.07 trillion, and loans of TZS 14.95 trillion.
Domestic revenue includes tax revenue of TZS 32.31 trillion, non-tax revenue of TZS 6.48 trillion, and Local Government Authority revenue of TZS 1.68 trillion.
Loans comprise TZS 6.27 trillion from domestic sources, with the remainder sourced externally.
Strategic Priorities and Flagship Allocations
The FY 2025/26 budget provides financing for flagship and strategic infrastructure projects identified in the National Development Plan, including transport corridors, energy generation and transmission, ICT backbone expansion, industrial parks, and large-scale health and education facilities.
Priority areas span supporting industrial projects; promoting investment and trade through institutional reforms, improved policies, and tax laws; and fostering human development with investments in education, health, water, environment, youth training, and land management.
Human resource development through vocational training, skills upgrading, and support for youth self-employment is also embedded in the spending framework.
Additional commitments include public service wages, fully financing the 2025 General Elections domestically, the construction and rehabilitation of stadiums for AFCON 2027, and public debt servicing.
The budget emphasizes increased private sector participation through innovative financing mechanisms, including Public-Private Partnerships (PPPs), consistent with the broader development strategy.
Sector Budget Highlights 2025/26
The Ministry of Works Budget for 2025/2026[2] includes several major infrastructure projects, among them Msalato International Airport (Dodoma), the Dar es Salaam Bus Rapid Transit (BRT) Program Phases III, IV, and V, the Dar es Salaam—Chalinze—Morogoro—Dodoma Expressway (531.8 km), the Dodoma City Outer Dual Carriageway Ring Road (Lot 1 & 2) (112.3 km), and Pangani Bridge as part of the Tanga-Bagamoyo road project.
Financing AFCON 2027 stadium construction and rehabilitation—including the new Samia Suluhu Hassan Stadium in Arusha and a new stadium in Dodoma—is a specific priority area in the 2025/26 national budget.
The Ministry of Energy Budget for 2025/2026 outlines investment opportunities in renewables, transmission and distribution infrastructure, and rural electrification, with a call for an additional USD 12.9 billion in financing, including USD 4.039 billion from the private sector.[3]
The Ministry of Tourism's 2025/26 budget focuses on the development and diversification of Tanzania's tourism circuits, reinforcing established routes while opening new ones, with particular emphasis on the Southern Circuit through the REGROW Project and the Western Circuit through the KAMACO Project.
The 2025/26 National Budget introduced a mandatory requirement for mining license holders to sell at least 20% of their gold locally, either for domestic processing or trading, to local refiners, smelters, jewelers, or the Bank of Tanzania.
FY 2024/25 Budget Outturn
In FY 2024/25, government spending amounted to TZS 49,362.28 billion, representing 98% of the annual target.
This was 14.9% higher than the TZS 42,945.2 billion recorded by end June 2024.
This performance was largely supported by improved domestic revenue collection and adequate financing through loan receipts.
In the same fiscal year, total grants reached TZS 880.1 billion, representing 111% of the annual estimate of TZS 794.4 billion.
Project Grants were the primary driver at TZS 740.1 billion (84.1% of total grant inflows), Basket Funds contributed TZS 87.0 billion (9.9%), and General Budget Support amounted to TZS 53.0 billion (6.0%).
FY 2024/25 Expenditure Composition
In FY 2024/25, Recurrent Expenditure stood at TZS 33,959.56 billion (68.8% of total spending), equivalent to 97% of its annual target.
The slight recurrent underperformance reflected continued pressure from statutory obligations, including wages, debt service, and transfers.
Conversely, Development Expenditure amounted to TZS 15,402.72 billion (31.2% of total spending), translating to 100.3% of the annual target.
The overperformance in development spending signals the Government's prioritization of infrastructure and growth-enhancing projects.
Overall, the FY 2024/25 budget outturn indicates a strong alignment with fiscal priorities.
Budget Trend 2017/18—2025/26
The 2025/26 budget reflects significant growth from TZS 34.9 trillion, totaling a 70% budget increase over the past six years.
This trajectory shows progressive expansion of Tanzania's fiscal envelope, supported by improved domestic resource mobilization.
The shift from TZS 50.28 trillion in FY 2024/25 to TZS 56.49 trillion in FY 2025/26 alone represents an annual nominal increase of approximately TZS 6.21 trillion.
The trend underscores the Government's deliberate strategy of scaling up public spending to finance infrastructure, social services, and strategic investments aligned with national development plans.
Fiscal Outlook and Macroeconomic Targets
Looking forward, fiscal discipline targets include keeping the budget deficit below 3.0% of GDP for the 2026/27 period.
Domestic revenue collection is targeted to rise to 17.1% of GDP, reinforcing the budget's pivot toward self-reliant financing.
Other macroeconomic anchors guiding the budget environment include real GDP growth of 6.3% and inflation maintained within a 3.0% to 5.0% target range.
Job creation targets of 1.7 million new jobs by 2026 also frame budget priorities around productive sectors and human capital.
Last Update: May 2026
References
- https://www.mof.go.tz/uploads/documents/en-1755779344-BUDGET%20INSIGHT%20FY%202025-26.pdf (Guide reference #40)
- https://www.mow.go.tz/uploads/documents/en-1746433881-HOTUBA%20YA%20BAJETI%202025.pdf (Guide reference #74)
- https://thedocs.worldbank.org/en/doc/7d09ddf2619513d85e489e2620252793-0010012025/original/M300-AES-Compact-Tanzania.pdf (Guide reference #105)
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