Dodoma, 25 Juni 2025 - Tanzania’s National Assembly has overwhelmingly passed the government’s TZS 56.49 trillion national budget for the 2025/26 fiscal year, paving the way for the implementation of key development and infrastructure projects across the country.
In a session chaired by Speaker Dr Tulia Ackson, a total of 373 Members of Parliament (MPs) — representing 98.7 per cent — voted in favour of the Appropriation Bill 2025, with only five abstentions and no opposition votes.
The bill, tabled for its first, second, and third readings by Finance Minister Dr Mwigulu Nchemba, was passed following a week-long parliamentary debate that focused on the state of the economy, national development plans, and sectoral allocations.
DEVELOPMENT COMMITMENTS AMID ELECTION YEAR
Dr Nchemba assured lawmakers that despite the upcoming General Election scheduled for October 2025, the government remains fully committed to releasing all allocated funds and executing the outlined projects without delay.
“Despite the upcoming general election, the requested funds for implementing projects as outlined in the approved ministry budgets will be released accordingly.
Since you, Members of Parliament, will be in your constituencies, you will witness the execution of these projects,” — Dr Mwigulu Nchemba
He reiterated that all ongoing and new projects are comprehensively integrated into the 2025/26 budget, dismissing doubts raised by some MPs regarding potential disruptions during the election season.
FLAGSHIP PROJECTS AND FINANCING STRATEGY
Dr Nchemba highlighted key strategic investments, including continued financing for the Standard Gauge Railway (SGR) — specifically Lots 5 (Mwanza), 6, and 7, with funding secured. He noted that financing arrangements for Lots 3 and 4 are in their final stages.
The Minister also addressed concerns about the national debt, now standing at TZS 107.7 trillion, urging Tanzanians to assess debt within the context of high-impact development financing.
“We shouldn’t just compare numbers and say the debt has increased. This is our money; it’s a matter of priorities,” he remarked, noting that relying exclusively on domestic revenue would delay infrastructure growth.
He pointed to major projects like the Julius Nyerere Hydropower Plant and the JP Magufuli Bridge, which were financed using internally generated resources.
“This responsible track record is why development partners continue to trust Tanzania,” he said, citing the country’s long history of managing development funds prudently since the 1960s.
MACROECONOMIC STABILITY AND GROWTH
Earlier during the session, Minister of State for Planning and Investment, Prof Kitila Mkumbo, commended Tanzania’s resilience amid global shocks. He credited the visionary leadership of President Samia Suluhu Hassan and the country’s diversified economic base.
“Unlike many countries, Tanzania does not rely on a single economic sector but benefits from a broad base including agriculture, tourism and minerals,” Prof Mkumbo noted.
Tanzania’s growth rate remains stable at around 6 per cent, with the country avoiding recession since 2020 and maintaining low inflation, peace, and continued public service delivery.
KEEP FOLLOWING US FOR INSIGHTS INTO TANZANIA’S ECONOMIC PATH
This space will continue to bring you expert analysis and real-time updates on Tanzania’s economic policies, fiscal planning, and investment opportunities. From budget allocations to infrastructure milestones, stay tuned for data-driven coverage that empowers your financial and business decisions.
📲 Follow us on social media for daily highlights and updates
No comments:
Post a Comment