Z’bar projects 8.05tri/- revenue in 2026/27 budget

ZANZIBAR: MINISTER for Finance and Planning, Dr Juma Akili, has unveiled an ambitious budget framework projecting government revenue of 8.05tri/- for the 2026/27 financial year, representing a 23 per cent increase from the 6.53tri/- estimated for the current fiscal year.

Presenting the budget in the House of Representatives in Zanzibar Town, Dr Akili attributed the projected growth to improved revenue collection systems and a more favourable investment climate.

The increase reflects strengthened tax administration and continued improvements in the investment environment in our country,” he told lawmakers.

The minister said tax authorities, including the Tanzania Revenue Authority (TRA) and the Zanzibar Revenue Authority (ZRA), had consistently collected more than 90 per cent of targeted revenues under the Eighth Phase Government.

He also highlighted progress in strategic development projects, including the construction of the Government City, expansion of the House of Representatives infrastructure and measures to broaden financial inclusion through improved banking, insurance services and digital systems.

To enhance energy efficiency, the government has procured more than 150 electric vehicles, with 50 already delivered, to reduce fuel costs. Dr Akili said the government paid 8.64bn/- in dividends to Sukuk investors, while the Zanzibar Social Security Fund (ZSSF) completed 14 affordable housing blocks, developed the Mombasa Market and acquired 10 electric commuter buses.

He acknowledged challenges affecting project implementation, including delays in documentation, low compliance in issuing tax receipts, limited office space and rising healthcare costs linked to noncommunicable diseases.

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To address these, the government is strengthening project monitoring through the Zanzibar Integrated Planning System (ZIPS), intensifying public awareness on receipt issuance and continuing construction of the Government City.

For the 2026/27 fiscal year, priorities include enhancing domestic revenue mobilisation, expanding digital budget systems, completing the Zanzibar Development Plan (ZADEP 2026–2031) and implementing major infrastructure projects.

The government also plans to construct the People’s Bank of Zanzibar headquarters, establish the Zanzibar Investment Bank and launch the Zanzibar Stock Exchange while reviewing VAT legislation and strengthening ICT systems.

Dr Akili said tourism remained a key driver of economic growth, with 800,968 visitors recorded between July 2025 and March 2026, a 21.9 per cent increase compared to the corresponding period last year.

“The government remains committed to strengthening economic resilience, improving public service delivery and ensuring inclusive growth for all Zanzibaris,” he said.