Tanzania Parliament Approves TZS 56.49 Trillion Budget for 2025/26 with 98.7% Support to Boost Development and Manufacturing

The Parliament of Tanzania has overwhelmingly approved the Government’s revenue and expenditure estimates of TZS 56.49 trillion for the 2025/26 Financial Year, with more than 373 Members of Parliament, equivalent to 98.7%, voting in favor.

Speaking while clarifying various questions from Members of Parliament before the open voting exercise to approve the budget, the Minister of Finance, Hon. Dr. Mwigulu Nchemba, stated that the Government will continue to ensure, through the 2025/26 budget, that economic growth targets are achieved by focusing on the effective implementation of development projects as outlined in the Third Development Plan 2021/22–2025/26 (FYDP III), including pilot and strategic projects, strengthening production projects, and enhancing the quality of human resources, especially in the social services sectors.

“The Government will continue to control inflation in the country to cope with changes in global commodity prices by strengthening various production sectors, including increasing the use of natural gas produced domestically, as well as encouraging the use of alternative energy to reduce the importation of petroleum products; improving the environment to stimulate the production of fertilizers, edible oils, sugar, and other essential products to reduce imports; continuing with the implementation of sound financial and budgetary policies; and increasing crop production to facilitate the availability of food in domestic markets,” said Dr. Nchemba.

He also stressed the importance of the manufacturing sector in boosting the country’s GDP, stimulating the economy, and providing employment to citizens. For this purpose, TZS 10.24 trillion has been allocated to the sector, equivalent to 18.12% of the national budget for the year 2025/26.

“This budget has taken into account the implementation of other priorities, including the construction and renovation of various stadiums in preparation for the Africa Cup of Nations (AFCON) 2027, preparations for the 2025 General Elections, and the completion of pilot and strategic projects,” said Dr. Nchemba.

The Minister also recognized the importance of the agricultural sector, for which the Government has allocated a total of TZS 1.9 trillion, equivalent to an increase of 203.6% compared to the 2021/22 budget.

He concluded his speech by stating that the 12th Parliament has left a great mark on the country by passing various laws, resolutions, and programs that are beneficial to the citizens.

“Honorable Members of Parliament, you will be greatly remembered for supporting the efforts of the Hon. President of the United Republic of Tanzania to push the wheel of development for our country, especially through the implementation of projects with positive results in various economic sectors, including the production sectors, enabling infrastructure, as well as social services,” said Dr. Nchemba.

Tanzania’s National Budget 2025–2026

The Government’s expenditure of TZS 56.49 trillion for the year 2025/26 includes: employee entitlements and pension contributions (Central Government) of TZS 7.71 trillion; procurement of goods and services of TZS 7.81 trillion; loan interest payments of TZS 6.49 trillion; and subsidies and transfers to Government institutions, public organizations, and Local Government Authorities of TZS 23.04 trillion. In addition, the Government expects to spend TZS 7.72 trillion to cover capital payments on domestic and external debt.

The 2025/26 Government 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.

Of the expected domestic revenue, tax revenue is TZS 32.31 trillion, non-tax revenue is TZS 6.48 trillion, and Local Government Authority revenue is TZS 1.68 trillion. In addition, loans include TZS 6.27 trillion from domestic sources and TZS 8.68 trillion from external sources.