Tanzania plans to raise spending by 13% in fiscal year from July, draft shows
DAR ES SALAAM, March 13 (Reuters) - Tanzania plans to increase overall spending by 13.4% in the fiscal year from July, according to a draft budget that focuses on the country's debt repayment needs, the cost of a coming general election, and U.S. President Donald Trump's pause in overseas aid.
The east African country plans to spend 57.04 trillion shillings ($22 billion) in the 12 months starting in July, up from 50.29 trillion shillings this year, according to a budget paper seen by Reuters.
Finance Minister Mwigulu Nchemba presented a paper titled "Budget Framework and Expenditure Ceiling For 2025/26" to a parliamentary committee on Tuesday.
The final budget for the coming fiscal year will be read in June.
Of the total amount, the government expects to raise 40.97 trillion shillings from domestic revenue sources and the rest through both domestic and external debt, according to the paper.
Tanzania is taking steps to reduce its dependence on unpredictable sources of revenue or debt with unfavourable terms, the paper showed.
Like some other developing countries Tanzania has also been hit hard by U.S. President Donald Trump's freeze on all foreign aid for 90 days.
The budget has taken into consideration, the paper said, "the potential impact that is likely to happen due to changes of policies from development partners, especially the United States."
In the next financial year the government will focus on boosting production of manufactured goods and services, and the promotion of trade and investment among other factors, the paper said.
"Specific priorities include covering costs on government debt repayment, salaries, the general election of 2025 and promotion of democracy in the country," Nchemba said in the paper.
Tanzania is set to hold a general election in October in which voters will choose the next president, lawmakers and local government officials.
President Samia Suluhu Hassan will be seeking re-election for a second term of five years, having come to power in 2021 after the death of her predecessor.
($1 = 2,610.0000 Tanzanian shillings)
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