Tanzania tables Sh62.3 trillion national budget for 2026/27

Dodoma. The Tanzanian government plans to collect and spend a total of Sh62.33 trillion for the 2026/27 financial year.

Tabling the budget in in Parliament on June 11, 2026 the Minister for Finance, Amb Khamis Mussa Omar said the new budget represents a 10.3 percent increase compared to the previous 2025/26 fiscal year.

Amb Omar said about Sh46.79 trillion in total revenue would be collected.

“Tax revenue forms the bulk of this collection at Sh36.99 trillion. Other revenue streams will bring in Sh9.24 trillion. This includes Sh1.97 trillion from Local Government Authority own sources. Grants from development partners are projected at Sh563.1 billion,” Amb Omar noted.

Moreover the government aims to significantly increase national self-reliance.

“Domestic revenue will finance approximately 74.2 percent of the entire budget. Grants from development partners will decrease by 39.1 percent. This drop stems directly from shifting policy landscapes among international partners,” Amb Omar.

Amb Omar expressed gratitude to international partners for their historic support.

However, he stressed that citizens bear the primary responsibility for national development. He urged Tanzanians to engage fully in economic activities and pay taxes voluntarily.

Excluding principal debt repayments, expenditure and investment on non-financial assets will consume Sh54.50 trillion.

Employee entitlements and pensions will require Sh10.13 trillion.

The state has allocated Sh5.22 trillion for goods and services.

Interest payments will consume Sh6.86 trillion, while subsidies stand at Sh25.32 trillion.

Pension benefits and transfers will take Sh1.01 trillion.

The government will also direct Sh2.33 trillion toward non-financial assets, alongside Sh3.63 trillion in other costs.

The presented revenue and expenditure estimates leave a budget deficit of Sh7.71 trillion.

The state will manage this deficit through domestic and external borrowing.

These operations will follow the established Medium-Term Debt Management Strategy.

Total planned borrowing for the financial year amounts to Sh15.54 trillion.

Domestic loans will account for Sh6.56 trillion of this total.

The government will secure Sh6.55 trillion through external concessional loans.

External commercial loans will cover the remaining Sh2.43 trillion.

Additionally, the government has set aside Sh7.84 trillion for the amortization of matured loans.