Realising Competitiveness and Industrialization for Human Development
The Minister for Finance and Planning, Hon. Dr. Mwigulu Nchemba, unveiled the 2025/26 estimates of government revenue and expenditure on June 12, 2025, at the National Assembly in Dodoma, Tanzania.
The Minister proposed reforms to taxes, fees, levies, and revenue measures, which aimed at addressing global economic challenges, including trade tensions between developed countries. The measures also sought to transform the Tanzanian economy, evidently by encouraging local production and manufacturing as opposed to importing finished products, enhancing domestic revenue collection, and curbing government revenue losses.
The Minister communicated the intention to maintain a stable and predictable tax system, to stimulate wealth-generating activities by focusing on strategic sectors such as mining, agriculture, and transport, mainly to increase employment opportunities.
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- Economy and GDP grew by 5.5% in 2024, up from 5.1% in 2023
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- In 2025, real GDP is projected to grow by 6%
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- Maintain foreign exchange reserves adequate to cover a minimum of 4 months’ worth
of imports of goods and services
- Maintain foreign exchange reserves adequate to cover a minimum of 4 months’ worth
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- The fiscal deficit (including grants) is estimated to decrease to 3% of GDP in 2025/26,
down from 3.4% in 2024/25
- The fiscal deficit (including grants) is estimated to decrease to 3% of GDP in 2025/26,
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- Inflation is relatively low, averaging 3.1% between July 2024 and May 2025.
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- Public debt has increased by 17.44%, from TZS 91.71 tn to TZS 107.7 tn
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- Public debt to GDP stands at 40.3%
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- Credit rating is B1 with a stable outlook, indicating moderate risk and a steady economy
| Indicators | 2022 | 2023 | 2024 | 2025 |
| DGP growth | 4.7 | 5.1 | 5.4 | 6.0 |
| Revenue to GDP | 14.6 | 15.4 | 15.8 | 16.7 |
| Tax Revenue to GDP | 12 | 12 | 12.9 | 13.3 |
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