The Minister for Finance and Planning Hon. Mwigulu Lameck Nchemba delivered the National Budget Speech on 12 June 2025 with the theme ‘Inclusive Economic Transformation through Domestic Resource Mobilization and Resilient Strategic Investment for Job Creation and Improved Livelihoods’.
The Budget was prepared based on the macroeconomic targets for the 2025/26 fiscal year, with a focus on accelerating economic growth, enhancing revenue mobilisation and maintaining macroeconomic stability.
Specifically, real GDP growth is projected at 6.0% in 2025, up from 5.5% which was planned for in 2024; inflation is expected to remain within a single-digit range of 3.0% to 5%, consistent with the previous year’s target.
Domestic revenue collection is targeted at 16.7% of GDP, an improvement from 15.8% in 2024/25, while tax revenue is projected to reach 13.3% of GDP, up from 12.8%. The budget deficit is expected to narrow to 3% of GDP, compared to 3.4% in 2024/25.
Foreign exchange reserves will continue to be maintained at a level sufficient to cover at least four months of imports of goods and services, maintaining the same threshold as in the previous year.
To support these fiscal objectives, the Government has outlined a series of administrative and policy measures aimed at enhancing revenue performance. These include:
- promoting the issuance and use of electronic fiscal receipts (EFDs);
- strengthening revenue collection systems under regulatory bodies;
- expanding the integration of local government revenue sources through the TAUSI system;
- improving remittance compliance among public institutions, agencies, and corporations;
- fostering private sector growth through continued implementation of the Business and Investment Environment Improvement Plan (MKUMBI); and
- promoting digital payments to enhance transaction efficiency and transparency across the economy.
