Dodoma. The government has officially requested Parliament to approve Sh21.3 trillion for the Ministry of Finance and its institutions.
The proposed budget covers the upcoming 2026/27 financial year.
Presenting the plan on Tuesday June 2, 2026 the minister for Finance, Amb Khamis Mussa Omar, told Parliament that the funds will support eight separate ministerial votes.
According to the proposal recurrent expenditure will consume Sh19.4 trillion of the total request.
“The government has allocated the remaining Sh1.8 trillion to development projects,” Amb Omar noted.
He said economic stability remains a central objective for the ministry with the goal being to manage the economy professionally to achieve a growth rate of 6.3 percent in 2026.
“The plan is to control inflation, targeting a stable range between three percent and five percent,” he revealed.
Amb Omar emphasised that the state aims to strengthen fiscal discipline and boost domestic revenue collection efficiency.
Addressing existing debts is a key priority in the new fiscal strategy.
The ministry will allocate Sh100 billion every month to settle outstanding arrears.
This funding will target debts owed to public servants, contractors, suppliers, and service providers to resolve long-standing payment challenges.
On the revenue generation front, the ministry projects a total collection of Sh55.2 trillion.
The Tanzania Revenue Authority is expected to collect the largest share, targeting over Sh39 trillion.
Additionally, Amb Omar requested Sh132.2 billion for the National Audit Office to strengthen public spending oversight and construct new regional offices.
The budget aligns with the National Development Vision 2050, the Fourth National Development Plan, and the 2025 ruling party election manifesto.
Reviewing the current 2025/26 fiscal cycle, the minister noted that parliament initially approved Sh20.18 trillion.
Recurrent expenditure stood at Sh19.43 trillion, which included Sh1.10 trillion for salaries.
The initial development budget was Sh747.30 billion.
“A mid-year review later revised the total ministerial budget down to Sh19.94 trillion,” Amb Omar said.
By the end of April 2026, the ministry had received Sh14.08 trillion, representing roughly 70.6 percent of the revised budget.
Actual spending reached Sh14.05 trillion, which marks a 99.76 per cent utilization rate of the released funds.
Between July 2025 and April 2026, the government successfully collected Sh41.37 trillion from both domestic and foreign sources.
This performance met 82.4 percent of the annual revenue target.
Debt servicing required significant funding during the same period, consuming Sh9.74 trillion.
The state directed Sh4.45 trillion toward external debt and Sh5.29 trillion toward domestic debt.
Amb Omar stated that timely payments have strengthened Tanzania’s reputation in regional and international financial markets.
Consequently, Tanzania won the Commonwealth Public Debt Management Award and received recognition for the best debt management office in the African region.
The domestic economy showed steady expansion, growing by 5.9 percent in 2025 compared to 5.5 percent in 2024.
Increased credit to the private sector, infrastructure improvements, agriculture, mining, and strategic projects drove this growth.
Inflation remained stable at an average of 3.4 per cent. Foreign exchange reserves reached $5.723 billion, which provides over 4.4 months of import cover.
