Experts back budget, urge stronger implementation to realise Dira 2050

DAR ES SALAAM: VARIOUS stakeholders have welcomed the 2026/27 National Budget for its alignment with the Tanzania Development Vision 2050 (Dira 2050), while urging stronger implementation, adequate financing and sustained reforms to translate the vision into tangible benefits for citizens.

The endorsement follows the presentation of the 62.33tri/- 2026/27 National Budget, which prioritises domestic revenue mobilisation, while supporting economic growth, industrialisation and structural transformation.

Stakeholders said the budget provides a solid fiscal framework for advancing the country’s long-term development agenda through increased investment in productive sectors, private sector growth, human capital development and digital transformation.

The views were expressed over the weekend during a policy dialogue organised by the Economic and Social Research Foundation (ESRF) to assess the extent to which the budget supports implementation of Dira 2050.

While commending its direction, participants stressed that success will depend on effective execution, sufficient financing and continued reforms to ensure inclusive and sustainable growth.

Women in Social Protection (WSP)-Tanzania Senior Specialist Flora Myamba said the budget reflects notable progress in integrating Dira 2050 priorities, particularly in inclusion and human capital development.

She welcomed the introduction of genderresponsive budgeting in nine ministries and two local government authorities, describing it as a significant milestone towards inclusive planning.

“The success of the vision will depend not only on the size of budget allocations but also on whether funding is adequate and effectively implemented,” she said.

Ms Myamba also noted increased allocations to education, health, water and energy, saying these investments would strengthen human capital through improved infrastructure, technology, research, digital development and healthcare services.

However, on social protection, she called for stronger domestic financing, warning that continued reliance on development partners could undermine long-term sustainability.

ESRF Senior Research Fellow Dr John Shillinde said the budget is strongly aligned with Dira 2050, particularly in advancing digital transformation and private sector development.

He noted that the expansion of digital technologies across priority sectors would support Tanzania’s transition towards a knowledgebased economy capable of leveraging emerging technologies for longterm growth.

“Improvements in VAT refund mechanisms will ease business cash flow constraints, while tax incentives for local production will promote industrialisation, agricultural value addition and import substitution,” he said.

Dr Shillinde also welcomed reforms reviewing 55 laws and 374 fees and levies, saying they would reduce the cost of doing business and address long-standing concerns from the private sector.

He added that the one-year income tax exemption for newly established businesses would encourage formalisation and business expansion.

Alliance for a Green Revolution in Africa (AGRA)-Tanzania Country Director Vianney Rweyendela described agriculture as the most critical sector for delivering inclusive growth, saying its prioritisation in the budget is key to achieving Dira 2050.

He said sustained agricultural growth offers the greatest potential to reduce poverty by creating broad-based employment and increasing incomes, particularly in rural areas where most Tanzanians depend on farming.

“Higher productivity would enable farmers to compete more effectively in domestic and export markets, transform agriculture into viable commercial enterprises and provide reliable raw materials for industrial development,” he said.

Mr Rweyendela noted that although the economy has continued to grow, the benefits have not sufficiently reached most citizens because key growth sectors generate relatively limited employment opportunities.

He said reforms reflected in the budget, including the establishment of the Dar es Salaam International Financial Centre and the Agricultural Logistics Centre, would enhance export competitiveness—particularly for horticultural products—by reducing transport costs and improving market access.

Earlier, Economic and Social Research Foundation (ESRF) Executive Director Prof Fortunata Makene said the budget represents an important milestone in translating Dira 2050 from vision to implementation.

She said the success of the vision will depend on how effectively its priorities are integrated into budgeting, institutional systems and execution.

Prof Makene reaffirmed ESRF’s commitment to supporting evidence-based policy dialogue to advance Tanzania’s long-term transformation agenda.