Tanzania Sees Economic Milestone in Its 2025/26 Budget

Dodoma — The Tanzanian heads to now a dawn with its 2025/26 Budget earmarked for making Tanzania a middle income nation.

The budget, as revealed today in Dodoma, is anchored on the theme of “Inclusive Economic Transformation through Strengthening Domestic Revenue Collection, Strategic Investments to Create 69 Employment Opportunities, and Improving Citizens’ Living Standards.”

Finance Minister Dr. Mwigulu Nchemba confirmed that this approach aligns with the goals agreed upon by East African Community member states.

He outlined that the budget targets several key economic milestones for 2025/26, including a GDP growth rate of 6.0percent, up from 5.5percent in 2024.

He also added that the government also aims to maintain inflation within a single-digit range, targeting an average of 3.0percent to 5.0percent over the medium term.

Further goals include increasing domestic revenue to 16.7ercent of GDP, compared to 15.8percent in 2024/25, and raising tax revenue to 13.3percent of GDP, up from 12.8percet last year.

He said that the budget deficit (including grants) is expected to narrow to 3.0percent of GDP from 3.4percent in 2024/25.

Additionally, foreign currency reserves are projected to cover at least four months of imports.

Dr Mwigulu also said the budget emphasizes increasing private sector participation in investment and trade, enhancing resilience to natural and man-made disasters, and ensuring stability in global markets.

It further focuses on maintaining food security, and fostering peace, unity, and stability both within the country and with neighboring nations.