Tanzania’s Minister for Legal and Constitutional Affairs Dr. Mwigulu Nchembafor presented, on behalf of Finance Minister Hon. Philip Mpango, the budget proposal for the fiscal year 2021/22 to the National Assembly.
According to the document, the Government plans to spend a total of TZS 36.26 trillion in the financial year 2021/22, an increase of 4% from TZS 34.88 trillion allocated in the 2020/21 budget.
In his speech to the Assembly, Nchembafor explained that 71.8% of the total budget or TZ 26.0 trillion is expected to come from domestic revenues, while grants and soft loans from Development Partners should account for TZS 2.9 trillion; domestic loans for TZS 5.0 trillion; and conditional external commercial loans for TZS 2.4 trillion.
Of that money, 63% or TZS 23.0 trillion will be allocated for recurrent expenditure, while 37% or TZS 13.3 trillion will be destined to development projects.
2021/22 will be the first year in the implementation of the 3rd Tanzania Five-Year Development Plan (FYDP III).