The Tanzanian government has announced plans to review its medium-term planning and budget guidelines for 2026/27 to 2028/29. This decision comes after Members of Parliament provided recommendations aimed at controlling public expenditure, clearing outstanding debts, and improving the implementation of development projects. Finance Minister Ambassador Khamis Mussa Omar made the commitment in Parliament on Tuesday, November 3, 2026.
The review will focus on seven priority areas identified during the debate, including controlling government expenditure, improving revenue collection, financing development projects, managing public debt, digitalising public financial management, strengthening financial discipline, and promoting public-private partnerships (PPPs). The government will assess recommendations from the Parliamentary Standing Committee on Budget and lawmakers before developing implementation strategies.
Ambassador Omar disclosed that 10 PPP projects worth a combined Sh8.6 trillion were at various stages of implementation in the 2026/27 financial year. These projects include the first and second phases of the Bus Rapid Transit system, the DDC Kariakoo commercial building, mandatory motor vehicle inspection centres, improvements to Dar es Salaam Port operations, and the rehabilitation and operation of the Tazara railway.
The government plans to announce additional PPP projects in 2027/28, including railway lines linking Mtwara Port to Mbamba Bay and Tanga Port to Arusha and Musoma. The proposed projects also include the 222-megawatt Rumakali Hydropower Plant. These initiatives aim to attract private investment by ensuring proposed projects meet investors’ financing requirements.
On revenue collection, Ambassador Omar said the government was improving digital systems to strengthen the collection of tax and non-tax revenue. The systems being improved include IDRAS, TANCIS, GePG, TAUSI, and e-Ardhi. This move is expected to enhance revenue collection and reduce leakages.
MPs had called for an increase in monthly allocations for settling outstanding debts owed to contractors, suppliers, and service providers from Sh100 billion to Sh300 billion. They also urged the government to improve verification procedures to ensure legitimate claims were paid promptly. In response, Ambassador Omar said Treasury Circular No. 1 for 2026/27 had directed public institutions to prioritise ongoing projects.
The review will also cover macroeconomic developments, implementation of the 2026/27 Budget, medium-term spending projections, government operating costs, public contract management, and the participation of local companies in public procurement. Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said his ministry would work with the Finance Ministry to incorporate recommendations from MPs and the Budget Committee into preparations for the 2027/28 national Budget.
Key points
- The Tanzanian government will review its medium-term planning and budget guidelines to incorporate recommendations from Members of Parliament.
- The review will focus on seven priority areas, including controlling government expenditure and promoting public-private partnerships.
- The government has released Sh348 billion to settle outstanding obligations, with Sh224.7 billion paid to contractors implementing water and road projects.
