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 approved the Government’s revenue and expenditure estimates of TZS 56.49 trillion for the 2025/26 Financial Year, prioritizing economic growth, development projects, and increased allocations to manufacturing and agriculture. The budget will be financed mainly by domestic revenue, grants, and loans.
Tanzania Parliament Nchemba

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.

Tanzania Investment Guide 2026 Free Edition

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 Investment Guide 2026 Full Edition

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.

Related Posts
Tanzania Survey Foreign Liabilities 2024
Read More

Tanzania Foreign Liabilities Survey 2026 Targets Companies to Update Investment and Balance of Payments Data

The Bank of Tanzania (BOT), the National Bureau of Statistics (NBS), and the Tanzania Investment and Special Economic Zones Authority (TISEZA) have launched the 2026 Survey of Companies with Foreign Liabilities in Tanzania. The exercise will collect 2025 foreign investment and financial data between July and September 2026 to support national economic statistics and policymaking.
TRA Targets TZS 41.83 Trillion Revenue in 2026/2027
Read More

TRA Targets TZS 41.83 Trillion Revenue in 2026/2027

The Tanzania Revenue Authority (TRA) has adopted new strategies to reach a revenue collection target of TZS 41.830 trillion for the 2026/2027 financial year. The Authority collected TZS 37.96 trillion in 2025/2026, equivalent to 105% of its TZS 36.07 trillion target.
EU-Tanzania Investment & Business Forum 2026-2027
Read More

EU–Tanzania Investment and Business Forum 2026-2027 to Connect Investors and Businesses

The EU–Tanzania Investment and Business Forum 2026–2027 will connect European investors, Tanzanian businesses, and public institutions to develop new investment partnerships in key sectors, including agriculture, energy, minerals, and digital innovation. The initiative will begin with European roadshows in Helsinki, Finland (28–29 September 2026), Emilia-Romagna, Italy (1–2 October 2026), and The Hague, Netherlands (5–6 October 2026), followed by a high-level forum in Dar es Salaam in early 2027.
IMF Tanzania flag
Read More

IMF Approves USD 443.9 Million for Tanzania, Projects 6.2% GDP Growth Supported by Mining, Agriculture, and Tourism

The IMF Executive Board has approved an immediate disbursement of USD 443.9 million to Tanzania after completing the final reviews under the Extended Credit Facility and Resilience and Sustainability Facility programmes. The IMF said Tanzania maintained strong economic growth and macroeconomic stability while highlighting the need for continued reforms and fiscal consolidation.