This archive report was first published on 16 June 2020.
On June 11, 2020, the Tanzanian government unveiled its budget for the 2020-21 financial year, with a total allocation of 34.88 trillion Tanzanian shillings (Sh1.6 trillion).
Finance and Planning Minister Philip Mpango explained that the budget is divided into recurrent and development expenditure. Recurrent expenditure accounts for 22.1 trillion shillings, while development expenditure is allocated 12.78 trillion shillings.
Of the recurrent expenditure, 10.48 trillion shillings will be used to service government debt, 7.76 trillion shillings will go towards paying wages, and 3.74 trillion shillings will cover other charges.
Development expenditure, on the other hand, comprises 10.04 trillion shillings from internal sources and 2.74 trillion shillings from external sources. Notably, 2.1 trillion shillings has been allocated for the SGR project, 1.6 trillion shillings for a hydropower project at Rufiji River, and 823.7 billion shillings for railway, water, and rural electrification.
