Tanzania Boosts Budget to $19B for Elections and Afcon Expenses
The Finance Ministry of Tanzania has put forward a budget of Tsh49.34 trillion ($19.35 billion) for the fiscal year 2024/2025, marking an 11 percent rise from the previous year’s Tsh44.4 trillion ($17.41 billion) budget.
A significant portion of spending is anticipated to be allocated towards the elections and the necessary arrangements for the 2027 Africa Cup of Nations (Afcon) finals, which Tanzania will co-host alongside Kenya and Uganda.
In the recent budget directives unveiled by Finance Minister Mwigulu Nchemba, it has been stated that recurrent expenses will increase to Tsh33.55 trillion ($13.15 billion), up from Tsh29.17 trillion ($11.44 billion) in the present fiscal year. This adjustment comes in anticipation of the forthcoming local government elections in October and the general election scheduled for 2025.
Mr. Nchemba mentioned that a portion of the proposed budget for development spending, now totaling Tsh15.78 trillion ($6.19 billion) compared to Tsh15.21 trillion ($5.96 billion) in 2023/2024, will be designated for the refurbishment of current stadiums and the construction of new ones in preparation for Afcon 2027.
In the upcoming fiscal year of 2024/2025, the government will also focus on investing in essential infrastructure projects and social services, such as subsidized public education. Specific allocations for each sector will be outlined in the official budget presentation scheduled for June.
Mr. Nchemba stated that the funding for the upcoming budget will rely on 70.1 percent from a domestic revenue goal of Tsh33.26 trillion ($13.04 billion), marking a 10 percent rise compared to the projected domestic earnings of Tsh30.23 trillion ($11.85 billion) in 2023/2024.
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It’s projected that domestic and foreign non-concessional loans will generate Tsh9.6 trillion ($3.76 billion), marking a 27.4 percent rise from Tsh7.5 trillion ($2.94 billion). Meanwhile, revenue from external grants and concessional loans is anticipated to decrease from Tsh5.46 trillion ($2.14 billion) in 2023/2024 to Tsh5.13 trillion ($2.01 billion).
Mr. Nchemba emphasized that the government’s priority would be directed toward enhancing domestic revenue collection as the most dependable means of financing budgetary expenditures, thereby avoiding adherence to unfavorable conditions.
Steps will be taken to enhance the Tanzania Revenue Authority’s systems to increase revenue collection.
The government plans to allocate funds to boost sectors with the potential for rapid growth, aiming to broaden the tax revenue base. Additionally, efforts will persist in formalizing informal businesses and closing tax evasion avenues, such as enhancing border post controls with neighboring countries, according to the minister.
He further stated that the government intended to advocate for increased public-private partnership agreements to alleviate the financial strain it currently faces in funding development projects as traditionally done.
Tanzania Boosts Budget to $19B for Elections and Afcon Expenses