Tanzania's Finance Ministry has announced a proposed budget of Tsh49.34 trillion ($19.35 billion) for the 2024/2025 fiscal year, marking an 11% increase from the previous year's Tsh44.4 trillion ($17.41 billion). This significant boost in budget allocation is primarily aimed at supporting the upcoming elections and the preparation for the 2027 Africa Cup of Nations (Afcon), which Tanzania will co-host with Kenya and Uganda.

The budget emphasizes increased recurrent spending, set to rise to Tsh33.55 trillion ($13.15 billion), in anticipation of the local government elections in October and the 2025 general election. Development spending is also on the rise, with Tsh15.78 trillion ($6.19 billion) earmarked for key infrastructure projects, including the renovation and construction of stadia for Afcon 2027.

Finance Minister Mwigulu Nchemba highlighted the government's focus on infrastructure and social services, such as subsidized public education, as priority areas for the coming fiscal year. The budget aims to be predominantly funded through domestic revenue, targeted at Tsh33.26 trillion ($13.04 billion), and supplemented by domestic and external loans, alongside a slight reduction in external grants and concessional loans.

The Tanzanian government is committed to enhancing domestic revenue collection methods, including tightening Tanzania Revenue Authority systems and investing in sectors that expand the tax base. Initiatives to formalize the informal business sector and improve tax compliance are also underway, with an emphasis on public-private partnerships to alleviate the government's financial burden on development projects.