Dar es Salaam — The recent directive by the Prime Minister, Hon Dr Mwigulu Nchemba, to curtail unnecessary government expenditure is a decisive and commendable step toward fiscal discipline.
Speaking during the inauguration of the MV Mwanza at Mwanza South Port, Dr Nchemba issued a stern call to ministries, local government authorities and public agencies to curb non-essential expenditure.
His instruction was clear they should redirect these funds toward stalled development projects and prioritise the settlement of advance payments to contractors.
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By specifically targeting the procurement of luxury fuel-guzzling SUVs in favour of servicing existing, functional fleets, the printing of decorative calendars and the procurement of expensive gift packages, the Prime Minister has sent a clear message that the 2025/26 budget is a tool for service delivery, not executive comfort.
For too long, the sight of high-end vehicles has stood in stark contrast to the austerity required of ordinary taxpayers. However, while grounding the 'V8 culture' is a powerful symbolic victory, it must serve as a catalyst for a deeper, systemic clean-up of our TZS 56.49 trillion fiscal framework.
The directive to fast-track payments to contractors is particularly savvy. By avoiding the massive interest penalties and fines that arise from payment bottlenecks, the government is ensuring that we pay for bricks and mortar, not for delays and bureaucracy.
Crucially, Dr Nchemba has emphasised that while non-priority expenditures are on the chopping block, budget allocations for Defence, Security and Health must remain intact. This demonstrates a government that knows its priorities: Protecting the person, the health and the future of the Tanzanian citizen.
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While we are so much encouraged by Prime Minister's intent, we must remain vigilant against the systemic invisible leaks that threaten to drain our coffers.
There are interest payments on the national debt, tax exemptions and incentives estimated to reach 1.5tri/- this fiscal year and annual loses estimated to reach Perhaps the most alarming 'bleed' is the estimated 5tri/- lost annually to Illicit Financial Flows (IFFs).
Driven by trade misinvoicing and tax avoidance, these flows siphon nearly 10 per cent of our total budget into thin air. The government's move toward the full digitisation of customs and tax systems is a vital step in the right direction. By removing the 'human element' from revenue points, we can eliminate the bribery and manipulation that have historically facilitated these losses.
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Expenditure rationalisation is more than just a cost-cutting exercise. It is a key aspect of public leadership accountability. We urge all accounting officers to internalise this efficiency. The era of 'business as usual' has closed. The era of tangible benefits for the people has begun.
