DODOMA: The Tanzanian government has allocated 800 billion shillings in the 2026/27 financial year to pay verified arrears owed to contractors, suppliers, and public servants, according to the budget speech delivered in Parliament on May 22, 2026. The allocation aims to clear outstanding obligations and improve cash flow in the economy.
Finance Minister Dr. Mwigulu Nchemba presented the budget, stating that the funds will prioritize verified claims to ensure transparency and efficiency. The move is part of broader fiscal reforms to support local businesses and stabilize public finances.
The government has faced criticism over delayed payments in the past, which have strained small and medium enterprises. This allocation is expected to ease liquidity challenges and boost economic activity in the upcoming fiscal year starting July 1, 2026.
