Govt vows strengthening collection
Highlights measures for fiscal discipline

DODOMA: THE National Assembly has approved the 62.33 tri/- national budget for the 2026/27 financial year, with the government pledging to strengthen domestic revenue collection, enhance fiscal discipline, and ensure efficient use of every shilling collected to accelerate national development.

With the approval, the government said it remains committed to boosting internal revenue mobilisation while tightening expenditure controls to improve value for public funds and support priority development projects across the country.

Speaking yesterday before lawmakers prior to the approval of the budget estimates, Minister for Finance, Ambassador Khamis Mussa Omar, said the overwhelming support demonstrated by Members of Parliament reflected a shared commitment to building a faster-growing, self-reliant economy driven by the productive sectors.

“It is encouraging to see that all Honourable Members individually and collectively agree with the proposals contained in the motion we presented,” he said.

“All Members support the estimates of revenue and expenditure submitted and agree that this budget is aimed at accelerating economic growth, promoting industrial transformation and strengthening our nation’s self-reliance.”

The finance minister expressed the government’s commitment to enhancing financial discipline through prudent management of public revenues and expenditures.

“All Members agree with the need to strengthen financial discipline in government by managing our revenues properly and ensuring that every shilling collected is used effectively, efficiently and for the benefit of Tanzanians,” he said.

Ambassador Omar noted that one of the dominant themes raised during parliamentary debates was the need to further strengthen domestic revenue collection.

He commended the Tanzania Revenue Authority (TRA) for its improved performance in recent years but acknowledged that more reforms were needed.

“Many Members praised the significant improvements achieved by TRA, and I join them in congratulating the authority for the patriotic work it continues to perform. However, several areas have also been identified where we still have opportunities to improve governance, systems, legal frameworks, information technology and revenue administration,” he said.

The minister pledged that the government will continue implementing measures aimed at expanding the tax base, improving compliance and formalising the informal sector.

He reiterated that all business operators are required to register and obtain Taxpayer Identification Numbers (TINs), while the government will continue introducing incentives and support mechanisms to encourage small businesses to formalise their operations.

On fiscal discipline, Amb Omar said MPs had strongly urged the government to reduce unnecessary expenditure, including excessive spending on luxury vehicles, seminars, workshops and travel.

“The government has already taken several steps to control expenditure, but we acknowledge there is still room for improvement,” he said.

“Controlling spending is a critical component of fiscal discipline.”

He also addressed concerns over outstanding debts owed to contractors and suppliers, revealing that the government has already verified liabilities amounting to approximately 2.2 tri/-.

“The government acknowledges that remaining in debt is not desirable and various measures are being implemented to address the situation,” he said.

The finance minister further pledged to channel funds directly into special accounts to strengthen project management and facilitate timely settlement of obligations, including payments to contractors and suppliers.

Additional allocations have also been made to support the procurement and distribution of medicines through the Medical Stores Department (MSD).

Another major issue highlighted during the debate was the need to strengthen Public-Private Partnerships (PPPs) as a strategy for financing development projects while reducing pressure on public finances.

Ambassador Omar said Tanzania currently has nine projects being implemented under PPP arrangements but acknowledged that the country had yet to fully exploit the potential of the model.

“We are committed to reviewing the entire PPP framework during the new financial year to identify areas requiring legal, institutional and operational improvements,” he said.

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The minister also reaffirmed the government’s commitment to prudent borrowing, stressing that debt sustainability will remain a key consideration in all financing decisions.

“We will continue borrowing carefully and responsibly. We will not borrow simply for the sake of borrowing,” he said.

“All borrowing decisions will continue to be guided by debt sustainability assessments, development priorities and the economic benefits of proposed projects.”

Meanwhile, Minister for Minerals Anthony Mavunde welcomed the budget’s allocation of resources to support extensive geological exploration, describing the move as historic for Tanzania’s mining sector.

Mavunde said Tanzania had completed geological mapping of approximately 95 per cent of its territory and geochemical surveys covering 24 per cent, but only 16 per cent of the country had undergone high-resolution exploration capable of accurately identifying mineral bearing structures and anomalies.

According to the minister, the government has approved the allocation of 10 per cent of mining sector collections to finance detailed exploration activities.

“This is a critical investment for the future of our mining industry. Around 84 per cent of Tanzania has not yet been subjected to detailed high-resolution exploration,” he said.

For his part, Minister for Livestock and Fisheries Dr Bashiru Ally said the budget would support key initiatives aimed at transforming livestock and fisheries into major drivers of food security, industrialisation and export growth.

Dr Bashiru highlighted progress in the construction of the Kilwa Fishing Port, describing it as one of the flagship projects of the sixth phase government under President Samia Suluhu Hassan.

“The construction of the fishing port is nearing completion and equipment testing is expected to begin next week,” he said.

He announced that the facility is expected to be officially inaugurated by President Samia Suluhu Hassan in the next few months, creating new opportunities for investment and value addition in the fisheries sector

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