Government Budgetary Operations and Fiscal Management

Tanzania is focusing on improving revenue collection efficiency, managing expenditures prudently, and prioritizing development projects to foster sustainable economic growth. The budgetary operations reflect a commitment to fiscal stability and economic development.

Revenue Collection:

• Domestic Revenue: In April 2024, Tanzania's domestic revenue, which includes central and local government collections, was TZS 2,119 billion. This was 94.1 percent of the target for the month, demonstrating strong performance in revenue collection.
• Central Government Revenue: TZS 2,036.1 billion, with TZS 1,821.6 billion from tax revenue and TZS 214.6 billion from non-tax revenue.

Tax Categories Performance:

• Taxes on Imports: TZS 592.9 billion in 2024, compared to TZS 416.5 billion in 2023.
• Income Tax: TZS 384.5 billion in 2024, compared to TZS 258.4 billion in 2023.
• Taxes on Local Goods and Services: TZS 732.1 billion in 2024, compared to TZS 467.1 billion in 2023.
• Other Taxes: TZS 411.9 billion in 2024, compared to TZS 126.9 billion in 2023.
• Non-Tax Revenue: TZS 214.6 billion in 2024, compared to TZS 116.5 billion in 2023.

Government Expenditure:

• Total Expenditure: In April 2024, government expenditure amounted to TZS 2,480.4 billion, allocated as follows:
  • Recurrent Expenditure: TZS 1,882.8 billion, including wages and salaries, interest costs, and other recurrent expenditures.
  • Development Expenditure: TZS 597.5 billion, directed towards development projects.

Breakdown of Central Government Expenditure:

• Wages and Salaries: TZS 752.3 billion in 2024 estimates, compared to TZS 575.0 billion in 2023 actuals.
• Interest Costs: TZS 317.1 billion in 2024 estimates, compared to TZS 258.4 billion in 2023 actuals.
• Other Recurrent Expenditure: TZS 573.2 billion in 2024 estimates, compared to TZS 467.1 billion in 2023 actuals.
• Development Expenditure: TZS 597.5 billion in 2024, compared to TZS 126.9 billion in 2023 actuals.

Fiscal Management:

• 2024/25 National Budget Proposal: The budget estimate is TZS 49.35 trillion, an 11.2 percent increase from the previous year.
  • Revenue Estimates: Domestic revenue is projected to be 70.1 percent of the budget, focusing on improving compliance and leveraging ICT for efficiency.
  • Expenditure Allocation: Development expenditure is expected to account for 30 percent of the budget, prioritizing flagship projects outlined in the Five-Year Development Plan III.

Summary of Budget Frame for 2023/24 and 2024/25:

• Total Resources:
  • 2023/24: TZS 43,510,082 million
  • 2024/25: TZS 49,345,688 million
• Domestic Revenue:
  • 2023/24: TZS 30,503,207 million
  • 2024/25: TZS 34,610,646 million
• Grants:
  • 2023/24: TZS 5,466,215 million
  • 2024/25: TZS 5,130,613 million
• Loans:
  • 2023/24: TZS 7,540,841 million
  • 2024/25: TZS 9,604,428 million
• Total Expenditure:
  • 2023/24: TZS 43,510,082 million
  • 2024/25: TZS 49,345,688 million
• Recurrent Expenditure:
  • 2023/24: TZS 30,178,271 million
  • 2024/25: TZS 34,590,391 million
  • Debt Service:
    • 2023/24: TZS 10,469,759 million
    • 2024/25: TZS 13,121,466 million
  • Wages and Salaries:
    • 2023/24: TZS 10,882,126 million
    • 2024/25: TZS 11,767,987 million
• Development Expenditure:
  • 2023/24: TZS 13,331,811 million
  • 2024/25: TZS 14,755,296 million

Key Fiscal Assumptions:

• Real GDP Growth: Projected at 5.4 percent in 2024.
• Inflation: Targeted within a range of 3 to 5 percent.
• Revenue to GDP: Domestic revenue at 15.8 percent and tax revenue at 12.9 percent of GDP.
• Budget Deficit: Maintained at 3 percent of GDP.
• Foreign Exchange Reserves: Maintaining reserves to cover 4 months of imports.