How TR’s Office can hit 2tri/- revenue goal

TANZANIA: FOLLOWING the announcement on Monday, July 28, 2025, that the Office of the Treasury Registrar (OTR) has set an ambitious internal target of collecting 2tri/- in non-tax revenue for the 2025/26 financial year, attention has turned to how this goal will be achieved.

The target significantly exceeds the government’s official target of 1.6tri/- for the OTR and represents a nearly 100 per cent increase from the 1.028tri/- collected in the previous financial year.

This sharp upward revision signals not only heightened ambition, but also an implicit recognition of untapped revenue potential within public institutions provided there is structural reform.

Many leaders at the opening of a four-day induction programme for heads of public institutions, organised by the OTR in collaboration with the Uongozi Institute, emphasised that achieving this target will require a fundamental shift in how public institutions are managed and how they contribute to the Government Consolidated Fund.

This highlights a critical mindset change: from viewing institutions merely as budget recipients to positioning them as active revenue generators accountable for contributing to the nation’s coffers.

The Treasury Registrar, Mr Nehemia Mchechu, highlighted the need for public institutions to operate with commercial discipline, stressing that profitability and reduced reliance on the national budget are now expectations rather than options.

This reflects a global trend where state entities are being pushed toward sustainability amid dwindling donor funds and tightening fiscal environments.

Enforcing dividend remittances under existing legislation such as the Companies Act and Public Corporations Act formalises this expectation and serves as a legal backbone to compel compliance and transparency.

He pointed out that stateowned commercial enterprises must remit dividends under the Companies Act and the Public Corporations Act, while other institutions are required by law to contribute 15 per cent of their gross revenue to the Consolidated Fund.

The distinction underscores the diversified revenue streams expected from different public entities, encouraging tailored strategies that optimise each institution’s unique revenue base.

The Treasury Registrar further stressed the importance of embracing Information Communication and Technology (ICT), urging public institutions to allocate budgets for ICT investments and ensure integrated systems to improve efficiency and transparency.

This is a crucial acknowledgment that technology is not merely a facilitation tool but a core enabler of modern governance — reducing leakages, increasing real-time data tracking and fostering accountability which are vital for managing complex revenue flows.

With public investments standing at 6.25tri/- spread across 252 public entities and 56 companies in which the government has minority shares, leaders agreed that maximising returns and enforcing compliance will be critical to meeting the ambitious revenue target.

This vast capital stock offers both opportunity and complexity, demanding rigorous oversight and strategic management to convert investments into sustainable revenue streams.

If the reforms outlined during the induction programme are implemented effectively, the OTR believes the 2tri/- target is achievable and will set a new standard for public sector revenue mobilisation in Tanzania.

Success, however, hinges on persistent enforcement of accountability measures, strategic investment in capacity and technology and a transformative leadership mindset that prioritises commercial viability.

Chief Secretary Ambassador Dr Moses Kusiluka called on public institutions to avoid unproductive spending and channel more funds into priority sectors such as infrastructure, health, education and social services.

This plea reflects a broader fiscal prudence imperative where efficient resource allocation directly affects developmental outcomes.

By rooting financial discipline in tangible national priorities, Dr Kusiluka aligns fiscal sustainability with socio-economic development, reinforcing the urgency of trimming inefficiencies.

He emphasised that efficiency and high accountability must underpin institutional management, recognising that a large budget alone, without disciplined use, leads to poor outcomes.

It is in this context that the induction programme focused on strengthening institutional capacity through investments in human resources, infrastructure and technology—becomes essential.

Dr Kusiluka noted that improving internal capacity is essential for institutions to become more efficient and financially autonomous.

This highlights the interdependence of human capital and infrastructure development in enabling institutions to meet their revenue targets, reinforcing that capacity building is as crucial as fiscal policy.

Veteran public servant Mathias Kabunduguru urged public institutions to be proactive in utilising opportunities and improving competitiveness.

His call addresses a common challenge in the public sector: passivity and risk aversion.

By advocating for innovation and a results-driven mindset, Kabunduguru points to culture change as a critical lever for unlocking latent revenue streams and adapting to evolving economic realities.

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For his part, the Bandari College Principal, Dr Lufunyo Hussein, said that for public entities to significantly improve their revenue performance and contribution to the Government Consolidated Fund, they must prioritise the right mix of skills and workforce composition.

He stressed that strengthening human capital is key to unlocking the productivity and efficiency of public institutions, an essential step toward enabling the OTR to achieve its ambitious target of collecting 2tri/- from public entities and government minority interest companies.

“Human Resource Departments should take the front seat in driving institutional initiatives,” said Dr Hussein.

He added, “Talent must be placed at the heart of business strategy, if we want to see real transformation in public s