The government has said that it expects to spend 16tri/- from the 49.35tri/- national budget estimates for the 2024/2025 financial year for execution of development projects.
According to the Minister for Finance Dr Mwigulu Nchemba the development budget will be spend on of agriculture, education, livestock, infrastructure development, water, rural energy and health.
The monies will also be directed towards implementing ongoing projects among others Standard Gauge Railway (SGR) and the Julius Nyerere Hydro-Power Project (JNHPP).
Dr Nchemba made the remarks yesterday when laying a foundation stone for the construction of a building for Institute of Accountancy Arusha (IAA) in Dodoma insisting that the government focus is not only, on elections, AFCON and loan payments.
He said 600bn/- is expected to be spent on preparations for local government polls and General Election and 200bn/- on 2027 Africa Cup of Nations (AFCON) tournaments preparations.
"Every item has been given weight basing on its relevance, elections are carried as per country's constitution and the AFCON are in line with our international relations, but the budget lions share is for development projects," said Dr Nchemba.
He added that 5tri/- will be used for loan payments.
The national budget for the next fiscal year has been increased by 11.2 per cent compared to the 44.4tri/- approved during the 2023/24 financial year.
On Monday Dr Nchemba released the budget proposal during a special meeting for all MPs, highlighting the budget ceilings for the financial year 2024/25.
According to the minister, revenue collected by the Tanzania Revenue Authority (TRA) is expected to reach a total of 29.9tri/-, while tax and non-tax revenue from ministries, state-owned entities and independent departments amount to 3.4tri/-.
Local Government Authorities (LGAs) are expected to collect revenue totalling 1.3tri/-.
Of the total budget, the finance minister noted that 33.6tri/- are allocated for recurrent expenditures and the remaining 15.8tri/- are for development expenditures (equivalent to 3.8 per cent).
"Development funds include development subsidies totalling 1.2tri/- that will be spent on financing loans for students of higher learning institutions, as well as the programme for free basic education from primary to secondary level," he said. Grants and concessional loans from development partners will account for 5.13tri/-.
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The government also expects to borrow 6.6tri/- from the internal market, while another 4.02tri/- will be spent on servicing treasury bills and government bonds and 2.6tri/- will be spent on development projects.
"The government also expects to borrow 3tri/- from the foreign market, which will be spent on implementing various infrastructure projects," said Dr Nchemba.
"The government will ensure that all loans acquired are channeled to flagship projects that bring quick wins and a multiplier effect, including widening the base for employment and revenue, as well as ensuring that the projects are expedited and completed on time," he added.
The minister further added that part of the government spending in the next fiscal year will be directed towards servicing government debt, paying salaries for public servants, the 2024 local government elections and preparations for next year's General Election.
Other spending will go towards footing bills for civil claims, as well as the construction of football stadia as the country prepares to host the 2027 Africa Cup of Nations (AFCON).
Tanzania is expected to host the AFCON tournaments along with neighbouring Kenya and Uganda.
