Tanzania’s next budget projected at Sh61.9 trillion as economy eyes 6.3pc growth

By Katare Mbashiru

Dodoma. The Tanzanian government plans to collect and spend a total of Sh61.9 trillion in recurrent and development expenditures in the 2026/27 financial year, signalling an ambitious push to accelerate economic growth and implement priorities under the Fourth National Five-Year Development Plan (2026/27–2030/31).

The proposed budget represents an increase of about Sh5.4 trillion from the Sh56.49 trillion approved by Parliament for the 2025/26 fiscal year, reflecting expanded ambitions in infrastructure, human capital development, and social services.

Presenting the proposed guidelines for the preparation of the government plan and budget for the medium-term period (2026/27–2028/29) on Monday, February 2, 2026, Minister for Finance Khamis Mussa Omar said the economy is projected to grow by 6.3 percent in 2026.

He told the House that the upcoming budget is anchored on building a stable, inclusive, and competitive economy, strengthening human resource capacity and social development, and enhancing environmental conservation and resilience to climate change.

Other focus areas include reinforcing the foundations of national sustainability and rolling out flagship programmes aimed at transforming key sectors of the economy.

On the spending side, Mr Omar said priority areas will include financing ongoing flagship and strategic projects, servicing government debt, paying public servants’ salaries, settling arrears, and expanding the provision of social services.

Looking beyond a single fiscal year, the minister noted that over the medium-term period from 2026/27 to 2028/29, the government expects to collect and spend Sh204.087 trillion, equivalent to an annual average of about Sh68.03 trillion.

For the 2026/27 financial year, total revenue is projected at Sh46.69 trillion. Of this, tax revenue is expected to contribute Sh36.9 trillion, while other revenues are estimated at Sh9.24 trillion, including Sh1.97 trillion from Local Government Authorities. Grants from development partners are projected at Sh563.1 billion.