The parliament of Tanzania has approved the Central Government Budget of TZS 36.68 trillion for the financial year 2021-2022 with 94% of the Members of Parliament (MOPs) voting yes.
The total budget for 2021-2022 has been increased by 5% from TZS 34.88 trillion allocated in the 2020-2021 budget.
The 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 to development projects.
The key beneficiary economic sectors of the new budget will be construction, energy, and infrastructure.
Flagship projects to be financed include the construction of the standard gauge railway (SGR), the construction of Julius Nyerere Hydropower Project (2,115 MW), strengthening the national air carrier Air Tanzania, and the construction of the Uganda-Tanzania crude oil pipeline.
In addition, TZS 571.6 billion are expected to be spent in the tourism sector and TZS 233.3 billion in the health sector for the purchase of medicines.