DODOMA: THE government yesterday assured the public that all development projects and other services will continue as planned despite some donor countries changing their aid policies towards developing nations.
Minister for Finance, Dr Mwigulu Nchemba told the National Assembly that in recent months, some donor countries have announced policy changes that could impact developing nations, including Tanzania.
He said upon hearing the announcement, the government acted swiftly to the matter by forming an assessment team, under the Prime Minister’s Office to analyse the situation.
According to Dr Nchemba, the team assessed the mat- ter and came up with strategies, which could help to contain the situation. He said the assessment showed that the health sector needed 220bn/- to keep things running.
The minister said so far, the government has already released 98bn/- for the health sector and that it is looking forward to continuing releasing more funds to other af- fected sectors.
“I would like to use this opportunity to assure this House and all Tanzanians in general that the situation is under control, the government has already released 98bn/-to fill the gap caused by the shift of aid policies,” said Dr Nchemba, while contributing to the Prime Minister’s budget estimates for 2025/2026 fiscal year.
Dr Nchemba added that the assessment is continuing in other sectors and that the government is strong and it is determined to address the situation.
The minister said the government strategy is to allocate enough funds for investing and support local pharmaceutical industries to produce medicines and other medical equipment in the country.
“We are looking forward to producing medicines in our local industries instead of depending on donors’ support, we are capable of producing medicine for fighting malaria, Tuberculosis and other required medical equipment.
He added: “The coming 2025/2026 financial year budget and National Development Plan will give a wider picture and the plan in place to tackle the situation.”
Dr Nchemba revealed that more funds will be directed to the Medical Store Department (MSD) to ensure the body oversees drug production in various local pharmaceutical industries.
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“Tanzanians should remain calm and relax, no one is going to suffer just because some donors have decided to change their aid policies,” he noted.
The minister added that Tanzania has dared to do what seemed to be impossible in the eyes of others including the construction of electric Standard Gauge Railway Dar es Salaam to Mwanza and Kigoma respectively, construction of longest crude oil pipeline from Hoima, Uganda to Tanga, construction of long bridges, roads and many other big projects.
He said the government has completed the construction of the 2,115 MW Julius Nyerere Hydroelectric Power Project (JNHPP) and many other major projects.
Dr Nchemba added that the nation has also been able to cross through laugh roads giving examples of Covid-19, dollar crisis and many other challenges.
The government’s strategy is to cut unnecessary expenditures and redirect funds to key sectors such as health, rural and urban road construction, education, and others, according to Dr Nchemba.
Another strategy is to increase revenue, with the Tanzania Revenue Authority (TRA) expanding the tax base by focusing on compliance.
He said taxpayers will be encouraged to pay taxes voluntarily and tax education will be extended to youth and students so they grow up understanding their responsibilities.
Meanwhile, MPs overwhelmingly endorsed 595.292bn/- budget for Prime Minister’s office and other institutions under his docket for the 2025/2026 financial year after a five-day debate.
The legislators also endorsed 186.794bn/- budget proposal for the Parliament office for the coming fiscal year. Earlier, the Premier, Kassim Majaliwa assured MPs during a winding session that the government is committed to implementing all proposed projects in the budget.
He said the government will continue to improve workers’ welfare and other benefits in accordance to the salary increment procedures.
