Tanzania approves Sh945.7bn supplementary budget to boost key sectors

Dar es Salaam. Tanzania’s Parliament has approved a supplementary budget of Sh945.7 billion for the 2024/25 financial year to fund additional activities not initially planned in the main budget and to enhance allocations for some sectors.

The move follows the government's receipt of Sh460 billion from the African Development Bank (AfDB) and Sh130 billion from the International Monetary Fund (IMF), which were not included in the original budget approved by Parliament on June 30, 2024.

According to Finance Minister Dr Mwigulu Nchemba, the AfDB funds were initially allocated for the 2023/24 budget but were delayed and were only received in the 2024/25 financial year.

Presenting the budgetary increment proposal in Parliament on February 14, 2025, Dr Nchemba revealed that in the second half of 2024/25, the government also received an additional Sh356 billion from the IMF, which had not been part of the approved budget due to the timing of the negotiations.

“As a result, the government has gained a surplus of Sh945.7 billion for the 2024/25 financial year, which was not included in the budget approved by Parliament,” Dr Nchemba said.

The funds will be allocated to key sectors, including education, health, tourism institutions, and climate change mitigation programmes.

“Through these funds, the government will ensure continued provision and accessibility of health services. The allocation also takes into account recommendations from relevant sectors, agreements between the government and development partners, and input from the Parliamentary Budget Committee,” he explained.

The supplementary budget includes Sh325.9 billion for national expenditures, settling domestic debts owed to employees, contractors and suppliers, as well as infrastructure development.

In education, Sh131.4 billion has been allocated to support the implementation of the new curriculum, including constructing vocational secondary schools, providing learning materials, and hiring teachers.

Local government authorities have been allocated Sh173.7 billion for repair of health facilities and infrastructure including roads and bridges affected by El-nino rains.

The ministry of Natural Resources and Tourism will receive Sh260.7 billion for administrative costs, construction, and maintenance of roads in conservation areas, particularly within the Ngorongoro Conservation Area Authority (NCAA) and Tanzania National Parks Authority (TANAPA).

The parliamentary committee on Budget emphasised that the government had already identified strategic health centres to be built in each constituency, urging adherence to this list during implementation.

Committee vice chairman, Twaha Mpembenwe, cautioned against deviation of resources by local government officials, noting that past instances had seen funds misdirected.

“During the March 2025 parliamentary session, the committee will follow up on fund disbursement and the construction of these health centres. If we find deviations, we will recommend appropriate action against responsible officials,” he warned.

Regarding fund allocation to the President’s Office – Regional Administration and Local Government (PO-RALG), the committee urged the government to consider economic conditions and revenue-generating capacity when distributing funds to councils to ensure fair distribution.

“The committee does not expect some constituencies to benefit more than others without justifiable reasons. Additionally, the government must present a list of incomplete projects to Parliament for verification,” the committee advised.

Committee members also raised concerns over potential mismanagement, particularly when funds are received late in the financial year, leading to either misappropriation or unspent funds being returned to the treasury.

“The committee directs the Controller and Auditor General to conduct real-time audits on these funds to prevent misuse,” the report stated.

Lawmakers also weighed in on the matter, with nominated MP, Shamsi Nahodha, stressing the need for close oversight to prevent wastage.

“To ensure proper construction and completion of health centres, schools and vocational colleges, the ministry of Planning and Investment must coordinate the implementation,” he asserted.

The approval of the supplementary budget marks a significant step in addressing key development challenges.

However, ensuring proper utilisation and accountability remains crucial to achieving the intended objectives and benefiting Tanzanians effectively.