Focus on massive investments in infrastructure, social services and domestic revenue drive
By Business Insider Reporter, Dodoma
Minister for Finance, Dr. Mwigulu Nchemba, today presented the national budget for the 2025/26 financial year, amounting to TSh56.49 trillion, with a focus on consolidating development gains and preparing the country for the upcoming General Elections in October.
The budget has been decreased by about TSh500 billion following global economic shocks caused by move by US to introduce new business tariffs.
To large extent, the budget with a 3% deficit, will be financed locally, according to Dr. Nchemba.
Addressing Parliament in Dodoma, Dr. Nchemba emphasised that the new budget aligns with the final year of the National Development Vision 2025 and marks a transition toward a new long-term development blueprint. He noted that the budget is also intended to “strengthen peace, unity, and national prosperity” as the country approaches the polls.
Among the budget’s core allocations are allocations for General Election, other recurrent expenditure and development kit.
Over TSh741.5 billion has been earmarked specifically for the management and execution of the 2025 general elections.
Revenue projections for 2025/26 include TSh42.5 trillion in domestic collections, an increase from the previous year, with the Tanzania Revenue Authority (TRA) tasked to up tax collections.
The government has committed to closing revenue gaps through enhanced tax compliance, digital systems and intensified public corporation oversight as well as changes made in some tax laws.
The budget focuses on finishing grand projects which are ongoing including the Standard Gauge Railway (SGR), the nearly completed Julius Nyerere Hydropower Plant, expansion of rural electrification, and major road and bridge works across the country.
In social sectors, TSh636 billion will go toward higher education student loans, while TSh444.7 billion supports the free education program. The government also pledged TSh414.7 billion for medical supplies and TSh378.7 billion for water projects, reflecting a continued focus on improving the quality of life for citizens.
Gret chunk of expenditure will also be directed towards servicing the ballooning national debt, Dr. Nchemba said.
He reaffirmed the government’s commitment to borrowing only for high-impact projects and enhancing domestic resource mobilization to reduce debt pressure.
The minister used the budget platform to reinforce the political narrative, celebrating President Samia Suluhu Hassan’s nomination by the ruling party CCM for re-election.
He also confirmed that the upcoming elections will be entirely self-financed, positioning Tanzania among a small group of African countries with such fiscal capacity.
This 2025/26 budget, the last of the 12th Parliament, was described by Dr. Nchemba as a “budget of transition, unity, and trust” that seeks to protect the economic foundations laid over the past four years, while preparing the nation for leadership continuity.
Political analysts say the budget will play a pivotal role in shaping electoral narratives, especially with strong emphasis on rural transformation, job creation, cost-of-living management, and economic resilience. With Parliament expected to debate and approve the estimates before the end of June, attention now turns to how swiftly the government will implement the allocations – and whether voters will reward CCM’s development record at the ballot box.
