The national budget of Sh44.4 trillion for the fiscal year 2023/23, which was presented to parliament by the finance minister on June 15th, has been approved by the Tanzanian Parliament as of today, June 26th, 2023.
According to the results announced by National Assembly Speaker Dr. Tulia Ackson, 374 members of Parliament voted to approve the budget plans.
"This is equal to 95 percent of all votes cast by members of parliament," the Speaker said on Monday, June 26. Abstain votes were 20, and there were NO votes against the proposed budget, which takes effect on July 1,” she added.
The authorized Sh44.4 trillion budget is 7.07%, or Sh2.9 trillion, more than the Sh41.48 trillion budget approved by Parliament for the fiscal year 2022/23. In summary, Sh30.237 trillion of the Sh44.4 trillion budget for the financial year 2023–2024 would be funded internally.
Tanzania Revenue Authority would collect Sh26.725 trillion of the revenues to be obtained locally, with the remainder derived as non-tax revenue.
Sh1.144 trillion will be distributed to district, town, and city governments. The government would also get Sh5.466 trillion in grants and concessional loans from development partners, with another Sh7.541 trillion in commercial loans.
The Tanzanian Minister of Finance and Planning, Mwigulu Nchemba, revealed to the parliament on June 15, 2023, a Sh44.39 trillion national budget, an increase from the Sh41 trillion budget for the fiscal year 2022–2023.
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.