Budget charts path to self-reliance, experts

DODOMA: THE country’s 2026/27 national budget has been hailed as a significant stride towards economic self-reliance, with analysts and economists saying that it underscores the government’s commitment to funding development through domestic resources, while simultaneously reducing dependence on external support.

The 62.33tri/- budget, tabled in the National Assembly on Thursday by the Minister for Finance, Ambassador Khamis Mussa Omar, is designed to improve the lives of Tanzanians while accelerating the country’s transition to a more resilient and self-sustaining economy.

Speaking to the ‘Daily News’ yesterday, analysts said the budget marks a significant shift towards funding development priorities through local revenue mobilisation, increased private sector participation and enhanced productivity, signalling a move beyond traditional aid dependency.

Economist and investment banker Dr Hildebrand Shayo said the budget demonstrates a clear commitment to strengthening domestic resource mobilisation, stimulating private-sector growth, advancing digital transformation, promoting industrialisation and building a more productive economy.

According to Dr Shayo, the government’s emphasis on self-financing development projects reflects growing confidence in the country’s economic fundamentals and its ability to sustain longterm growth through internally generated resources.

Dr Shayo noted that for many years, Tanzania and many other African countries have relied heavily on external financing, including aid, concessional loans and other forms of international support. However, he said such development models have inherent limitations, as external assistance is often vulnerable to global economic shocks, shifting donor priorities and international crises, making long-term planning more challenging. Commenting on the government’s revenue mobilisation strategy, Dr Shayo said a self-financing economy requires an efficient, equitable and productionoriented tax system.

He noted that the budget proposes measures to widen the tax base, improve compliance and generate an additional 1.72tri/- in revenue. He added, however, that the significance of the reforms extends beyond revenue collection, as they seek to establish a stronger link between economic activity and government financing.

ALSO READ: Samia calls for affordable loans

According to Dr Shayo, reducing dependence on external support cannot be achieved within a single budget cycle. Instead, it will require sustained reforms, stronger institutions and more efficient utilisation of public resources. Sharing similar views, President of the Tanzania Association of Accountants (TAA), CPA Dr Godvictor Lyimo, said the 2026/27 budget is geared towards building a resilient and sustainable economy capable of withstanding future shocks.

He noted that the budget contains several measures aimed at strengthening domestic production, research and technological innovation. In the mining sector, for instance, the government has proposed enhanced research initiatives to boost productivity and promote value addition.

“A closer examination of the budget shows that it seeks to strike a balance between increasing production and managing consumption. While taxes have risen in some areas, the government has also introduced numerous incentives to support producers, stimulate economic growth and create employment opportunities,” Dr Lyimo said.

He added that the budget outlines a broad range of interventions intended to strengthen the domestic economy, increase government revenue, protect the environment, improve public health and support the implementation of Tanzania’s Development Vision 2050. Meanwhile, Financial Analyst Kelvin Msangi described the 2026/27 spending plan as a budget anchored on resilience, digital transformation, strategic investment and fiscal sustainability.

Referring to the budget document, he said the government’s key priorities include increasing domestic revenue, completing ongoing development projects, strengthening productive sectors, improving social services and creating a more conducive investment and business environment.

Mr Msangi said the proposed tax measures should be viewed within the broader context of the government’s efforts to increase domestic revenue amid declining grants, debt sustainability concerns and rising borrowing costs. He noted that tax collections had reached 28.10tri/- by April 2026, surpassing the target by 5.1 per cent and demonstrating improved revenue collection capacity.

At the same time, he cautioned that economic self-reliance should not be measured solely by tax collection, particularly when poverty remains at 25.1 per cent, stressing that the success of the budget will depend on fair taxation, prudent public spending, protection of vulnerable groups and sustained growth in productive sectors.

Economist and University of Dar es Salaam lecturer Prof Humphrey Moshi also welcomed the direction taken by the budget, saying its success would largely depend on prudent revenue collection and efficient utilisation of public funds. He argued that genuine economic self-reliance requires the country to achieve greater sufficiency in key sectors, particularly food production, through increased agricultural productivity and inclusive economic growth.

“We must ensure that everyone who is eligible contributes tax according to their income, while strengthening efforts to curb tax evasion in order to enhance domestic revenue mobilisation,” Prof Moshi said.

For his part, business and entrepreneurship expert at St Augustine University of Tanzania, Dr Sylvester Jotta, said the 2026/27 budget demonstrates an innovative approach to generating new revenue streams while reducing dependence on external financing. He added that the budget addresses a wide range of sectors and socio-economic priorities, laying a solid foundation for Tanzania’s long-term journey towards greater economic self-reliance.