DODOMA, Tanzania: Tanzania plans to increase government spending by 9.75% in the 2026/27 fiscal year to support economic growth while maintaining macroeconomic stability, Finance Minister Khamis Mussa Omar told parliament on Tuesday.
Total expenditure is projected at 61.9 trillion Tanzanian shillings ($24 billion), up from 56.4 trillion shillings in the current fiscal year. The budget is part of a medium-term fiscal framework of 204 trillion shillings through 2029, aligned with the country’s Vision 2050 strategy.
Omar said the budget would prioritise infrastructure, job creation—particularly for youth—food security, industrialisation, and expanded access to health, education, and water services.
Tanzania’s economy is expected to grow 5.9% in 2025, accelerating to 6.3% in 2026, with medium-term growth averaging 6.9%.
Inflation averaged 3.4% between July and November 2025, within the central bank’s 3–5% target.
The shilling has strengthened, exports and tourism earnings have risen, and private sector credit expanded by 18.1%, up from 15.3% a year earlier.
Public debt stood at 109 trillion shillings, up 8.6% year-on-year, mainly due to disbursed development loans.
Omar noted risks from potential delays in aid from development partners, including the EU and Swedish education programme, prompting intensified domestic revenue mobilisation and careful prioritisation of wages, debt servicing, and essential social services.