57tri/- to drive country’s economic transformation
DODOMA: THE government is expecting to collect and spend a total of 57.04tri/- in the 2025/26 Financial Year, an increment equivalent to 13.4per cent compared to 50.291tri/ that was approved by lawmakers for the current Financial Year.
The money, according to the government, will impressively be spent on the ongoing five key priority areas, as per the Second Five-Year National Development Plan (2020/21-2025/26) which comes to a climax by the end of this year.
Presenting the budget framework proposal for the 2025/2026 fiscal year during an entire committee for all Members of Parliament yesterday, the Minister for Finance, Dr Mwigulu Nchemba said that the government is fully committed to ensuring the next budget implementation would continue considering all priorities in efforts to attain the National Development Vision 2025.
The priorities include catalysing inclusive and participatory economy, strengthening industrial production and service delivery, boosting business and investment, developing people’s economy as well as developing human capital.
The Minister said the 57.04tril/- would be spent on wage bill and other statutory stipend to public servants in the central government, which are expected to account for 7.7tril/-, procurement of services and products (7.8tril/- ) and money to be disbursed to Ministries Departments and Authorities (MDAs) as well as Local Government Authorities (21.4tril/-).
Dr Mwigulu further noted that the government was planning to procure assets for different institutions of the government including office equipment, machines, vehicles, furniture, buildings construction and infrastructures (3.03tril/-).
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Moreover, the Finance Minister said that the government was expecting to spend 7.7tril/- in the capital debt as well as another 6.5tril/- to service local and external debts.
On economic growth, Dr Nchemba said that the government plans to increase pace from the projected 5.4per cent in 2024 to about 6.0per cent in 2025.
When it comes to the National Gross Domestic Product (GDP), the Finance Minister said the government was optimistic that local internal revenues would be hiked by 16.4per cent compared to 15.8per cent that was projected in 2024/25FY.
The Minister added that the inflation is projected to remain at a stable single rate of between 3.0 and 5.0.
Earlier at the meeting when presenting the government’s recommendations for the National Development Plan 2025/2026, the Minister of State in the President’s Office, Planning and Investment, Professor Kitila Mkumbo said that the new plan, which is the last in the implementation of the fiveyear document 2020/21- 2025/26, seeks to complete strategic development projects and poverty alleviation in the country.
According to Prof Mkumbo, the government, in the next fiscal year, plans to spend 34.1 per cent (19.5tri/-) of the entire budget to service programmes and development programnes compared to 15.96tri/- approved during this fiscal year.
