EA News Economic Development

The DAR ES SALAAM, Tanzania plans to increase its overall government spending by about 10% to 61.93 trillion Tanzanian shillings ($24.29 billion) in the coming fiscal year, Finance Minister Khamis Mussa Omar said on Tuesday, signaling a major shift in budget strategy as external support wanes.

In outlining the fiscal framework for the year beginning in July, Omar said the East African nation is grappling with rising financial demands to fund development priorities after the withdrawal of budget support from key international partners, including the United States and the European Union.

The planned increase comes as Tanzania navigates constraints on foreign aid and seeks to sustain investment in critical sectors such as infrastructure, social services and economic growth initiatives. The government is also expected to increase its borrowing, with projected public debt financing slightly above levels seen in the current year as it balances revenue needs and development commitments.

The fiscal plan reflects efforts to bolster domestic resource mobilisation and preserve funding for programmes that support long-term growth and stability, even as declining budget support from traditional donors adds pressure on state coffers.

Tanzania’s economy is forecast to grow moderately in the coming year, a performance that officials hope will help underpin expanded public investment and mitigate some of the challenges posed by tighter external financing.

03. February 2026/ Urge- DeveWire

Tanzania to Boost Public Spending by 10% Amid Funding Pressures

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