Dodoma. The Parliament has overwhelmingly approved the government’s Sh62.33 trillion budget for the 2026/27 financial year, clearing the way for the implementation of government expenditure and development programmes beginning July 1.
Speaker Mussa Azzan Zungu announced the results of the open vote in Parliament on Tuesday, June 23, 2026 revealing that 385 lawmakers voted in favour of the budget, representing 97.66 percent of the 393 votes cast.
Eight MPs voted against the spending plan, while another eight members were absent and did not participate in the vote.
The approval followed seven days of debate on the government’s budget proposals presented by Finance Minister Khamis Mussa Omar on June 11, 2026.
Speaking after the Parliament passed the Appropriation Bill authorising the government to withdraw funds from the Consolidated Fund, Speaker Zungu congratulated the Finance Ministry and legislators for their contributions to the budget process.
“The votes have been cast and the government is now authorised to use these funds. The money must be spent in accordance with Parliament’s directives, ensuring that the interests of the people remain the foremost priority,” he said.
Mr Zungu stressed that Parliament would continue monitoring budget implementation to ensure that all approved projects are executed and deliver tangible benefits to citizens.
The 2026/27 budget represents a 10.3 percent increase from the previous financial year.
According to the Finance Minister, the government expects to raise Sh46.79 trillion in revenue, including Sh36.99 trillion from taxes, Sh9.24 trillion from non-tax sources and other revenues, including Sh1.98 trillion collected by local government authorities, and Sh563.1 billion in grants from development partners.
Dr Omar said the budget reflects the government’s commitment to self-reliance, with domestic revenues expected to finance 74.2 percent of total expenditure.
Government spending and investment in non-financial assets are projected at Sh54.50 trillion, excluding debt principal repayments. Public sector wages and pension contributions will account for Sh10.13 trillion.
Other major expenditure items include Sh5.22 trillion for goods and services, Sh6.86 trillion for interest payments, Sh25.32 trillion in subsidies, Sh1.01 trillion for social benefits and assistance, Sh2.33 trillion for investment in non-financial assets, and Sh3.63 trillion for other expenses.
The minister said the budget framework would result in a fiscal deficit of Sh7.71 trillion, which the government plans to finance through a combination of domestic and external borrowing in line with the Medium-Term Debt Management Strategy for 2025/26–2027/28.
In the coming financial year, the government expects to borrow Sh15.54 trillion.
Of this amount, Sh6.56 trillion will be sourced from domestic borrowing, Sh6.55 trillion from concessional external loans and Sh2.43 trillion from commercial external loans.
The government also plans to repay Sh7.84 trillion in maturing debt principal obligations during the year.
Following the budget’s approval, Parliament is scheduled to receive, debate and pass the Finance Bill, 2026 on June 24, which will give legal effect to the tax and revenue measures proposed in the budget.
