Finance Ministry unveils TSh 21.3 trillion spending proposal for 2026/27

DODOMA: THE Government, through the Ministry of Finance, has requested Parliament to approve a total of TSh 21.3 trillion for the implementation of the Ministry’s responsibilities and those of its institutions during the 2026/27 Financial Year.

Presenting the Government’s Plan and Budget proposals in Parliament, the Minister of Finance, Amb Khamis Mussa Omar, stated that the funds will be used to finance both recurrent and development expenditures across the Ministry’s eight budget votes. Of the total amount, TSh 19.4 trillion will be allocated to recurrent expenditure, whileTSh 1.8 trillionwill be directed toward development projects.

He said that under this budget, the Government plans to continue managing the economy professionally to ensure that economic growth reaches 6.3 percent in 2026, while inflation remains within the target range of 3 to 5 percent.

“The Government also aims to strengthen discipline in the use of public funds and improve the efficiency of domestic revenue collection,” said  Amb Omar.

In addition, he noted that the Ministry plans to allocate TSh 100 billion every month to settle outstanding debts owed to public servants, contractors, suppliers, and service providers in order to reduce the backlog of government liabilities.

On the revenue side, he said that the Ministry of Finance expects to collect a total of TSh 55.2 trillion, of which the Tanzania Revenue Authority is expected to collect more than TSh 39 trillion.

In another development, he requested Parliament’s approval of TSh 132.2 billion for the National Audit Office to strengthen public expenditure auditing activities and continue the construction of its offices in several regions of the country.

Amb Omar explained that the budget was prepared in line with the National Development Vision 2050, the Fourth National Development Plan, and the 2025 CCM General Election Manifesto.