Tanzania: What’s in It for You? The Budget Breakdown

Dodoma — EVER wondered where your taxes actually go or why fuel prices shift like moods on a Monday? Welcome to the world of the national budget and precisely, the government’s master plan, shopping list and economic GPS all rolled into one.

Each year, behind all the big speeches, spreadsheets and numbers with far too many zeroes, lies a powerful tool that quietly determines everything from the roads we drive on, to the quality of schools and hospitals, to whether a small business survives or sinks.

A government budget is not just a ledger of income and expenses, it is a blueprint for national ambition, a financial mirror of leadership priorities and a policy compass guiding the country’s future. It tells us not just what a government is doing, but what it believes in.

In short, the budget is where economic management meets public service and long-term development and every citizen has a stake in what’s on the line.

Fundamentally, the budget reflects the government’s vision and priorities, shaping the path for national progress and economically the budget serves as a catalyst for growth and stability.

By allocating funds to key sectors such as infrastructure, agriculture, education and health, the government stimulates investment, job creation and productivity. However, through fiscal policies, the budget can control inflation, address income inequality and mitigate economic shocks, thereby contributing to macroeconomic stability.

In terms of development planning, the government budget transforms national strategies into actionable programmes.

Whether it’s building roads, expanding access to clean water, electrification or digital infrastructure, the budget ensures these projects receive the financial backing necessary for implementation. Without a sound and inclusive budget, development goals would remain unfulfilled intentions. The budget also guarantees the provision of essential public services.

Education, healthcare, social security and public safety are all financed through the budget. Recently, the government tabled a 56.49tr/- government budget for the 2025/26 financial year which is an increase of 50.29tr/- in the current year.

The Minister for Finance, Dr Mwigulu Nchemba, recently presented the national budget speech in Dodoma, where he announced that the government plans to collect and spend a total of 56.49tr/- in the 2025/26 financial year.

Dr Nchemba stated that the budget is expected to be financed through domestic revenue amounting to 40.47 tr/- grants amounting to 1.07 tr/- and loans totalling 14.95tr/-.

“Out of the expected domestic revenue, tax revenue will amount to 32.31 tr/-, nontax revenue 6.48 tr/- and revenue from Local Government Authorities will be 1.68 tr/-. Furthermore, loans include 6.27tr/- from domestic sources and 8.68 trillion shillings from external sources,” he explained.

According to Dr Nchemba, the government’s expenditure estimates of 56.49 tr/- for the 2025/26 financial year include salaries and pension contributions (Central Government) amounting to 9.17tr/- as well as the procurement of goods and services at 5.58tr/-.

He added that other expenditures include interest payments on loans totalling 6.49tr/- subsidies to government institutions, public corporations and local government authorities amounting to 22.17 tr/- and 7.72 tr/- allocated for capital payments on domestic and foreign debt.

“In the 2025/26 financial year, the government expects to accelerate the growth of real GDP to 6.0 per cent in 2025, up from 5.5 per cent in 2024, to continue containing inflation and ensure it remains in the single-digit range of an average between 3.0 and 5.0 per cent in the medium term,” he explained.

Some Mwanza city residents who were interviewed by the Daily News have expressed mixed reactions regarding the government’s budget, with some commending the government for presenting a budget that aims to address existing challenges while also implementing key national priorities.

A researcher from the Governance Links Institute, Donald Kasongi, said this year’s government budget, which has increased by six trillion shillings from 50tr/- to 56tr/-, indicates that the government has raised the expectations of Tanzanians in financing social development activities in the country. He further said the priorities in the budget are not clearly outlined.

According to him, the Minister for Finance, Dr Mwigulu Nchemba, mentioned them in other areas. “It would have been better to clearly state our priorities so that we don’t end up trying to do everything everywhere,” he said.

Mr Kasongi pointed out that a positive aspect of the budget is the reduced dependence on external aid, noting that out of the 56tr/-, only 1.4 trillion are allocated as aid from development partners.

“This is a good sign that as a country we are reducing dependency on foreign aid. Even if we don’t receive that aid, we can still cover the shortfall,” he explained.

Regarding agriculture, which is facing numerous challenges, he said farmers need to work within a shorter period using the 10,000 tractors provided to cope with and adapt to climate change. “We should identify areas with high production potential even smallholder farmers so they can be reached and productivity in agriculture can be improved,” he said.

On energy, Mr Kasongi noted that it was a heavily discussed topic in the government budget, particularly concerning forest protection through the use of clean cooking energy.

On the national debt, Mr Kasongi said 27 per cent of the budget going to debt repayment is a cautionary measure, adding that citizens are left questioning how the country will cope if the debt, which is currently at 40 per cent, approaches to 50 per cent.

“A quarter of the budget going to debt servicing is perhaps not a good sign. Another issue is employment, especially youth employment which seems to have been postponed. We should make efforts to attract youth by investing in agriculture,” he explained.

Bwiru Girls Secondary School Headmistress, Mrs Christina Zegera, while commending the government for presenting a people-centred budget, said that in the education sector, the budget has taken into account the need to ensure that every Tanzanian has access to quality education.

She said education is being delivered under a revised curriculum aimed at liberating people intellectually, economically and socially and that the budget increase meets expectations by aligning with established criteria.

Giving an example, she cited 2024 statistics showing that the country currently has a total of 20,533 primary schools, up from 3,270, with 229,840 teachers, up from 9,885 and 11,391,185 students, up from just 486,470.

In the secondary sector, she said there are currently 6,269 schools, 128,686 teachers and 3,314,198 students.

By Daily News.