On 11th March 2026, Tanzania’s Minister of Finance, Hon. Ambassador Khamis Mussa Omar, presented the government’s Tanzania Budget 2026/27 Proposals to the National Assembly, outlining a total expenditure plan of TZS 62,334.2 billion.
This proposed budget represents a 10.3% increase compared to the TZS 56,490.3 billion approved for the 2025/26 fiscal year, reflecting the government’s commitment to scaling up infrastructure and social services.
The framework is built on a projected real GDP growth of 6.3% for the 2026 calendar year, up from the 6.0% average growth recorded during the first nine months of 2025.
To maintain macroeconomic stability, the government aims to keep inflation within a single-digit range of 3.0% to 5.0% and ensure the budget deficit remains below 3.0% of the GDP.
The government intends to finance this ambitious plan primarily through domestic revenue, which is projected to reach TZS 46,791.3 billion, accounting for 74.2% of the total budget.
Of this amount, tax revenues are expected to contribute TZS 36,989.3 billion, while non-tax revenues are estimated at TZS 9,238.8 billion, including TZS 1,966.2 billion from Local Government Authorities.
External grants and aid from development partners are projected at TZS 563.1 billion, a significant decrease from TZS 1,069.8 billion in the previous year as the nation strives for greater fiscal self-reliance.
Total expenditure and investment in non-financial assets, excluding principal repayments, are set at TZS 54,498.6 billion, with TZS 9,985.7 billion allocated for public servant salaries and pension contributions.
The government also plans to borrow TZS 15,542.9 billion, comprising TZS 6,557.7 billion from domestic sources and TZS 8,985.2 billion from external sources, to cover the budget deficit and roll over maturing debts.
“For the year 2026/27, the Government expects to continue implementing various strategies, including the Medium-Term Revenue Mobilization Strategy 2025/26–2027/28, to expand the tax base and increase revenue collection to reduce budget dependency,” stated the Minister during the presentation.
He emphasized that the government will prioritize “unavoidable requirements, including the payment of salaries, government debt, verified claims, and social services,” while also focusing on completing ongoing strategic projects.
Regarding the investment climate, the Minister noted that the government will continue to “put in place an enabling environment to attract private sector participation in productive projects that will stimulate economic growth, increase employment opportunities, and government revenue.”
The 2026/27 proposed budget follows a period of strong economic performance in the 2025/26 fiscal year, where the government successfully collected TZS 20,303.0 billion in domestic revenue by December 2025, meeting 99.1% of its half-year target.
Strategic investments continue to be a cornerstone of the national agenda, with TZS 630.4 billion spent on the Standard Gauge Railway (SGR) and TZS 158.8 billion on electricity generation and distribution projects as of late 2025.
