Dodoma. The President’s Office – Regional Administration and Local Government [PO-RALG] has submitted a budget proposal totalling Sh11.783 trillion for the 2025/2026 financial year, marking a significant increase from the Sh10.125 trillion allocated in 2024/2025.
Presenting the estimates in Parliament on April 16, 2025, the minister of State in the President’s Office, PO-RALG, Mr Mohamed Mchengerwa, said the increase of Sh1.66 trillion represents the government’s intensified commitment to strengthening local governance systems and improving service delivery through regional and municipal development projects.
According to Mr Mchengerwa, the proposed budget sets aside Sh3.95 trillion for development projects.
Of this amount, Sh2.5 trillion will be sourced domestically, including Sh613.44 billion from internal revenue collected by local government authorities, while the remaining Sh1.45 trillion will be obtained from external funding partners.
The recurrent expenditure stands at Sh7.84 trillion, with Sh6.3 trillion earmarked for salaries and Sh1.53 trillion for other operating costs.
“We have not merely tabled estimates; we have presented a vision of hope, a map for development and a commitment to responsible leadership. PO-RALG is not driven by political acclaim, but by the search for sustainable solutions for the ordinary Tanzanian,” Mr Mchengerwa told Parliament.
He urged all regional administrations, local government authorities, and citizens at large to foster a spirit of collaboration and solidarity in the execution of planned initiatives.
The budget further projects that local government authorities, together with regional administrations and institutions under PO-RALG, will collect Sh1.92 trillion in internal revenues in 2025/2026.
This is up from Sh1.60 trillion approved in the current financial year, reflecting an increase of Sh324.83 billion, or 20.29 percent.
Breakdown of these projections includes Sh56.10 billion from institutions under the President’s Office – TAMISEMI, Sh306.07 million from regional non-tax revenues, and Sh1.68 trillion from local councils.
The minister revealed that Sh613.44 billion from council internal revenues will be channelled into the construction of three new hospitals in Temeke, Ilala and Mwanza municipalities.
“Funds will also be used to complete the hospital under construction in Kahama Municipality, build 28 new health centres, and finalise the construction of 72 others,” he said.
Other projects include construction of 32 new dispensaries and the completion of 325 others.
The budget also covers the building of X-ray facilities at health centres in Kibaha and Geita councils, among other councils.
PO-RALG also plans to construct 1,028.02 kilometres of roads—15.92km to be surfaced with light tarmac and 1,012.1km with gravel.
The budget provides for excavation of 806.32km of drainage canals, purchase of 11 road maintenance machines, construction of one bridge, 108 box culverts, two culverts, 29 pedestrian walkways, and installation of 590 streetlights.
A total of Sh1.18 trillion is earmarked for road construction, maintenance and rehabilitation in both urban and rural areas.
Of this, Sh257.03 billion will be sourced from the Road Fund, Sh127.50 billion from the government’s Consolidated Fund, Sh325.77 billion from the Sh100 per litre fuel levy, and Sh423.79 billion from external development partners.
