Tanzania tables Sh44.39 trillion budget for 2023-24

Dar es Salaam. Tanzania's Minister of Finance and Planning, Mwigulu Nchemba has on Thursday June 15, 2023 unveiled a Sh44.39 trillion national budget the next fiscal year, up from the Sh41 trillion budget in 2022-23 financial year.

In the coming year, domestic revenue is projected to be Sh31.38 trillion, equivalent to 70.7 percent of the total budget.

The total domestic revenue to be collected by the Tanzania Revenue Authority (TRA) is estimated to be Sh26.73 trillion, and non-tax revenue collected by ministries, 167 departments, institutions, and Local Government Authorities (LGAs), is estimated at Sh4.66 trillion.

"Also, grants and concessional loans from development partners are estimated at Sh5.47 trillion," said Dr Nchemba.

In addition, the government expects to borrow Sh5.44 trillion from the domestic market, of which Sh3.54 trillion will be for rolling over maturing government Treasury Bills and Bonds and Sh1.90 trillion for financing development projects.

"The government also expects to borrow Sh2.10 trillion from non-concessional sources for the purpose of accelerating implementation of development projects," the minister said.

In another development, he unveiled six objectives and targets for the coming year, including expanding GDP growth to 5.2 percent in 2023 from 4.7 percent in 2022.

In the medium term, maintaining inflation within a single-digit range of between 3.0 percent and 7.0 percent; and domestic revenue at 14.9 percent of GDP in 2023/24 from about 14.4 percent in 2022/23.

He also said that the government plans to increase Tax revenue at 12 percent of GDP in 2023/24 from 11.5 percent in 2022/23 and budget deficit (including grants) to less than 3.0 percent in the coming fiscal year.

"Maintaining sufficient foreign exchange reserves to cover at least four months of imports,"

Dr Mwigulu also named the key projects that will be prioritised in the coming budget, as mentioned in the 2022/23 state of the nation’s economy and National Development Plan which includes the Standard Gauge Railway (SGR).

Others are the Julius Nyerere Hydropower Project (JNHPP), revamping Air Tanzania Company Limited (ATCL), and the Lindi Liquefied Natural Gas (LNG) project.

Also, the 222 MW Rumakali and 358 MW Rhuhudji power generation projects and construction of the JPM Bridge.

"Others are construction of roads and large bridges; the development of special economic zones, including the Bagamoyo Special Investment Zone; and the Rare Skills Development Program," he said.