Tanzania proposes $19.35b budget for 2024/2025 fiscal year
The Tanzanian Finance Ministry has put forward a budget proposal totalling Tsh49.34 trillion ($19.35 billion) for the upcoming 2024/2025 financial year.
This marks an 11 per cent increase from the previous fiscal year’s budget of Tsh44.4 trillion ($17.41 billion) in 2023/2024.
A significant portion of this budget is earmarked for expenses related to the elections and preparations for the 2027 Africa Cup of Nations (Afcon) finals, which Tanzania is set to host jointly with Kenya and Uganda.
Finance Minister Mwigulu Nchemba unveiled the budget guidelines, indicating a rise in recurrent spending to Tsh33.55 trillion ($13.15 billion) from Tsh29.17 trillion ($11.44 billion) in the current fiscal year. This increase is attributed to the upcoming local government elections in October and the 2025 general election.
Moreover, a portion of the proposed Tsh15.78 trillion ($6.19 billion) development budget will be allocated towards renovating existing stadiums and constructing new ones in preparation for Afcon 2027, as stated by Mr. Nchemba.
The 2024/2025 budget prioritizes key infrastructure projects, social services, and subsidised public education. Detailed allocations for each sector will be presented during the official budget presentation in June.
To finance the budget, the government plans to rely on domestic revenue, targeting Tsh33.26 trillion ($13.04 billion), constituting 70.1 percent of the total budget. This represents a 10 percent increase from the previous fiscal year’s expected domestic income.
The domestic and external non-concessional loans are expected to yield Tsh9.6 trillion ($3.76 billion), a 27.4 percent increase from the previous fiscal year. However, income from external grants and concessional loans is anticipated to decrease from Tsh5.46 trillion ($2.14 billion) to Tsh5.13 trillion ($2.01 billion).
