Tanzania’s Sh57.04 trillion budget for 2025/26 is praised but criticized for increased borrowing, particularly for elections and AFCON preparations, while ongoing projects may face funding challenges. The government plans to prioritize existing initiatives and ensure timely salary payments to civil servants, emphasizing the need for efficient financial management.
In response to Tanzania’s budget framework for the 2025/26 financial year, which totals Sh57.04 trillion, stakeholders have expressed approval of the proposals while raising concerns about excessive borrowing. The budget includes significant expenditures for the General Election, debt repayments, and preparations for the Africa Cup of Nations (AFCON). Analysts warn that these financial commitments may hinder the funding of essential development projects.
The Tanzanian government, recognizing these apprehensions, has assured that no new projects will be initiated in the upcoming fiscal year. Instead, the focus will be on finalizing ongoing projects to uphold financial discipline. During the budget presentation on March 11, Finance Minister Dr. Mwigulu Nchemba outlined six key priorities: settling government debts, salary payments, preparing for elections and AFCON, strengthening democracy, and ensuring peace and stability.
Dr. Nchemba disclosed that Sh40.09 trillion, or 69.7 percent of the budget, will be generated domestically, while Sh16.7 trillion, representing 30.3 percent, will be sourced from external funding. Zacharia Jackson, an expert from Mwanza, noted that although the budget is not fundamentally flawed, reliance on government borrowing is growing. He emphasized the critical need for efficient financial planning to avoid depleting resources intended for development.
Furthermore, financial analyst Sablina Kaijage voiced concern that a significant portion of the budget is earmarked for elections, potentially delaying ongoing projects. She cautioned that unplanned expenditures might lead to excessive spending, advocating for a focus on maximizing domestic revenue to reduce dependency on external financing and enhance self-sufficiency.
Local trader Aidan Chedego underlined the necessity for timely salary payments to civil servants, asserting that economic stability hinges on consumer spending. “Peace and stability are important, but for us traders, business is the top priority. If salaries are paid regularly, people will continue shopping, which keeps the economy moving,” he remarked.
Analysts emphasize that prudent financial management and effective resource allocation will be vital in addressing Tanzania’s fiscal challenges as the country moves forward into the new budgetary period.
Tanzania’s latest budget proposals have garnered praise from various stakeholders; however, concerns regarding excessive borrowing and implications for development funding persist. With a focus on completing existing projects and ensuring timely salary payments, the government aims to maintain financial discipline while addressing critical expenditures. Prudent financial oversight and the maximization of domestic revenues will be imperative for the country’s fiscal health moving forward.
Original Source: www.thecitizen.co.tz
