Tanzania's Minister of Finance and Planning, Mwigulu Nchemba, revealed a Sh44.39 trillion national budget on June 15, 2023, an increase from the Sh41 trillion budget for the fiscal year 2022–2023.
Domestic income is anticipated to reach Sh31.38 trillion in the next year, or 70.7% of the whole budget. The expected total domestic income to be collected by the Tanzania Income Authority (TRA) is Sh26.73 trillion, while the estimated total non-tax revenue collected by local government authorities (LGAs), 167 departments, and other institutions is Sh4.66 trillion.
"Also, grants and concessional loans from development partners are estimated at Sh5.47 trillion," said Dr Nchemba.
The government also anticipates borrowing Sh5.44 trillion from the domestic market, of which Sh3.54 trillion will be used to refinance Treasury Bills and Bonds that are about to mature and Sh1.90 trillion will be used to fund development projects.
"The government also expects to borrow Sh2.10 trillion from non-concessional sources for the purpose of accelerating the implementation of development projects," the minister said.
In a related event, he revealed six goals and targets for the year ahead, one of which was to increase GDP growth from 4.7% in 2022 to 5.2 percent in 2023. Maintaining domestic revenue at 14.9% of GDP in 2023–24 from around 14.4% in 2022–23; and keeping inflation in the single-digit range of 3.0%–7.0% throughout the medium term.
Additionally, he stated that the government intends to raise tax collection from 11.5% of GDP in 2022–2023 to 12% in 2023–2024 while lowering the budget deficit (including grants) to less than 3.0%.
The Standard Gauge Railway (SGR) is one of the major projects that Dr. Mwigulu identified as being prioritized in the next budget and included in the 2022–23 State of the Nation Economic Report and National Development Plan.
Others include the remodeling of Air Tanzania Company Limited (ATCL), the Julius Nyerere Hydropower Project (JNHPP), and the Lindi Liquefied Natural Gas (LNG) project.
Additionally, there are the 222 MW Rumakali and 358 MW Rhuhudji power production projects as well as the JPM Bridge building.
"Others are the construction of roads and large bridges; the development of special economic zones, including the Bagamoyo Special Investment Zone; and the Rare Skills Development Program," the minister disclosed.