Government outlines budget priorities as debt servicing hits Sh15.1 trillion

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📰 Tanzania

Government outlines budget priorities as debt servicing hits Sh15.1 trillion 03.06.2026

The Citizen

Tanzania's Ministry of Finance has outlined eight key priorities for the upcoming financial year, emphasizing macroeconomic stability, enhanced revenue mobilization, and robust debt management. Minister Khamis Mussa Omar announced an allocation of Sh15.1 trillion for debt servicing, including principal and interest payments, to maintain investor confidence. The government also plans to set aside Sh100 billion monthly to clear arrears owed to public servants and suppliers. Total expenditure is projected at Sh21.34 trillion, with Sh19.45 trillion for recurrent and Sh1.89 trillion for development spending. The ministry aims to sustain economic growth at 6.3 percent in 2026 and keep inflation between 3-5 percent, while foreign exchange reserves are expected to cover at least four months of imports. The Tanzania Revenue Authority is tasked with collecting Sh41.01 trillion in gross revenue for the 2026/27 financial year. Challenges such as rising borrowing costs and global geopolitical tensions were acknowledged, with strategies including expanding domestic revenue collection and strengthening digital platforms.

The Citizen Full Article

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