Tanzanian Parliament Approves TZS 62.33 Trillion 2026/27 Budget, Taking Effect 1 July 2026

Tanzania’s Parliament approved the TZS 62.33 trillion (± USD 24 billion) Government Budget for 2026/27 by 385 of 393 votes on 23 June 2026, with the spending plan and its tax measures taking effect on 1 July 2026.

The budget was presented to Parliament in Dodoma on 11 June 2026 by the Minister for Finance, Ambassador Khamis Mussa Omar, and debated over seven working days from 15 to 23 June 2026.

Parliament Speaker Mussa Azzan Zungu announced the results on 23 June 2026, with 385 Members of Parliament voting in favour, eight against, and eight absent, a majority of approximately 98%.

Before the final vote, Members of Parliament reviewed and voted on the Finance Bill 2026 line by line, approving the individual tax measures it contains.

The debate concluded after Ambassador Omar and Professor Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, responded to issues raised by Members of Parliament during the seven days of discussion.

Ambassador Omar said the government was committed to tighter spending controls, settlement of arrears owed to contractors and suppliers, and improved revenue collection through tax administration reforms, in line with President Samia Suluhu Hassan’s directives on fiscal discipline. He acknowledged room remained to improve oversight and spending efficiency.

The government has set aside TZS 1.2 trillion (± USD 462 million) for clearing arrears in 2026/27, with about TZS 100 billion expected to be paid out each month, subject to cash flow, a measure intended to support private sector liquidity and continued project implementation.

Professor Mkumbo said 54.2% of the workforce remains engaged in agriculture, livestock, and forestry, and that industrialisation efforts would continue to be anchored in agricultural transformation.

The budget takes effect on 1 July 2026, subject to the President signing the Finance Act into law.