MWE Correspondent
In Tanzania’s political capital, Dodoma, Members of Parliament have begun formal deliberations on the government’s proposed TZS 56.5 trillion budget for the 2025/26 financial year.
The budget, presented last Thursday by Finance Minister Dr. Mwigulu Nchemba, outlines the administration’s economic roadmap as the country eyes continued development and prepares for the 2025 general election.
The proposed budget reflects a 12% increase from the previous year’s expenditure, signaling the government’s intention to scale up investments in priority sectors. Among the biggest winners in this year’s plan are strategic infrastructure projects, especially the Standard Gauge Railway (SGR)—an ambitious railway network that aims to modernize Tanzania’s transport system and enhance regional connectivity.
Another centerpiece is the Julius Nyerere Hydropower Station, one of the largest hydropower projects in Africa. Once completed, the dam is expected to generate more than 2,000 megawatts, helping Tanzania transition toward a more reliable and affordable electricity supply.
To finance these efforts, the government plans to raise revenue through both domestic and international borrowing. The proposed strategy involves borrowing TZS 8.7 trillion externally and TZS 6.3 trillion from the domestic market. While this raises concerns about public debt, authorities argue that the country’s borrowing remains within safe margins.
A recent Debt Sustainability Analysis (DSA) conducted in October 2024 shows that Tanzania’s total public debt is below 55% of GDP, while external debt stands at 23.6%—well within internationally accepted thresholds set by institutions like the International Monetary Fund (IMF) and the World Bank.
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Throughout the week, Tanzanian MPs are expected to critique the allocations, recommend adjustments, and voice their constituents’ concerns. The debate will culminate on Friday with an open parliamentary vote that will determine whether the budget is adopted.
This year’s budget comes at a politically sensitive time. With President Samia Suluhu Hassan leading sweeping reforms across various sectors, the budget is being watched closely for signs of her administration’s commitment to inclusive growth and economic stability. The President has prioritized industrialization, digital transformation, and youth employment—all reflected, in part, in this financial plan.
The budget also includes measures aimed at reducing poverty and improving the delivery of essential public services such as healthcare, water supply, and education. Analysts have noted the government’s increased attention to economic equity, particularly in rural areas that have historically lagged behind in development.
Minister Nchemba stressed during his presentation that the government will also tighten fiscal discipline, curb public sector corruption, and work to ensure transparency and accountability in all budgetary processes.
With Tanzania striving to maintain its status as one of the fastest-growing economies in Sub-Saharan Africa, the 2025/26 budget is more than just numbers—it’s a blueprint for resilience, equity, and long-term national ambition. Whether Parliament will pass the plan in its current form remains to be seen, but for now, the debate continues with the weight of national expectations hanging in the balance.
