Budget

Tanzania Budget 2024-2025

On June 14, 2024, the Minister for Finance, Dr. Mwigulu Lameck Nchemba Madelu (MP), presented the much-awaited Tanzanian national budget for the fiscal year 2024/25 to the National Assembly, amounting to TZS 49.35 trillion (about USD 18.94 billion).

The total budget for 2024-2025 has been increased by 11.2% from TZS 44.4 trillion (about USD 18.4 billion) allocated in the 2023-2024 budget.

Priority Areas For Tanzania’s 2024/25 Budget

he budget prioritizes several key areas to foster inclusive and competitive economic growth. These include:

• • Completion of flagship and strategic projects.

• • Strengthening production sectors.

• • Enhancing human capital development, particularly in social services.

• • Increasing the use of ICT.

• • Improving the business environment and investment climate.

Additionally, significant funds will be allocated for wages, debt servicing, the 2024 local government elections, preparations for the 2025 general elections, and the 2027 AFCON preparations.

Financing Of Tanzania’s 2024/25 Budget

The government aims to raise 34.61 trillion shillings in domestic revenues, representing 70.1% of the total budget and 15.7% of GDP. The Tanzania Revenue Authority is expected to collect 29.41 trillion shillings, while non-tax revenue from ministries, agencies, and local government authorities is projected at 3.84 trillion shillings and 1.36 trillion shillings, respectively.

Development partners are expected to contribute 5.13 trillion shillings (10.3% of the total budget) in grants and concessional loans. The government also plans to borrow 6.62 trillion shillings from the domestic market, with 4.02 trillion earmarked for rolling over maturing government securities and 2.60 trillion for development projects. Additionally, 2.99 trillion shillings will be sourced from external commercial loans for development projects.

Tanzania Budget 2023/24

In June 2023, the Tanzanian parliament approved a government budget of TZS 44.4 trillion (about USD 18.4 billion) for the 2023/2024 financial year that starts on 1st July 2023 and ends on 30th June 2024.

The total budget for 2023-2024 has been increased by 6.9% from TZS 34.88 trillion allocated in the 2022-2023 budget.

Priority Areas For Tanzania’s 2023/24 Budget

Out of TZS 44.4 trillion, TZS 30.31 trillion (68%) is for recurrent expenditure, while TZS 14.08 trillion (32%) is for development expenditure, which includes development expenditures for various projects both in Central Government and Local Government Authorities.

Energy and transportation infrastructure projects will drive the growth of development expenditure.

Priority areas include the completion of flagship and strategic projects such as: continuing the construction of the Standard Gauge Railway (SGR); revamping Air Tanzania Company Limited (ATCL); continuing the construction of the Julius Nyerere Hydropower Project (2,115 MW); construction of Ruhudji (358 MW) and Rumakali (222 MW) hydropower plants; development of the Liquefied Natural Gas (LNG) project; construction of the John Magufuli Bridge (Kigongo-Busisi); construction of roads and bridges; developing special economic zones including the strategic investment area in Bagamoyo.

Financing Of Tanzania’s 2023/24 Budget

Domestic revenues are projected to be TZS 31.38 trillion, equivalent to 70.7% of the total budget.

Out of the total domestic revenue to be collected, the Tanzania Revenue Authority (TRA) is estimated to collect TZS 26.73 trillion and non-tax revenue collected by Ministries, Departments, Institutions and Local Government Authorities is estimated at TZS 4.66 trillion.

Grants and concessional loans from Development Partners are estimated at  TZS 5.47 trillion. In addition, the Government expects to borrow TZS 5.44 trillion from the domestic market, of which TZS 3.54 trillion will
be for rolling over of maturing Government Treasury Bills and Bonds and TZS 1.90 trillion for financing development projects.

The Government also expects to borrow TZS 2.10 trillion from non-concessional sources for the purpose of accelerating the implementation of development projects.

Objectives of FYDP III

Tanzania is pursuing its Third National Five Year Development Plan (FYDP III; 2021/22 – 2025/26). The Plan is a continuation of the Government’s efforts to achieve the goals set in the National Development Vision 2025. Every national budget of Tanzania is prepared in line with the Tanzania Development Vision 2025 and the FYDP.

Tanzania’s Third National Five Year Development Plan main objectives are:

(i) Increases the GDP annual growth rate from 6% in 2021 to an average of 8% by 2026;
(ii) Increases internal revenues from 15.9% of GDP in 2021/22 to 16.8% in 2025/26;
(iii) Inflation to remain low between 3.0% and 5.0% over the medium term;
(iv) Foreign exchange reserves to meet the requirements of imports and foreign service for a period of not less than four months;
(v) The creation of eight million new jobs in the private sector between 2021 and 2026.

Last Updated: 14th June 2024