The President’s Office – Regional Administration and Local Government (PO-RALG) has tabled a budget proposal of TSh 11.783 trillion for the 2025/2026 financial year, marking a significant increase of over TSh 1.6 trillion compared to the current year’s budget.
The proposed budget, presented in Parliament today by the Minister of State in the President's Office (Regional Administration and Local Government), Mohamed Mchengerwa, represents a strategic shift toward improving local governance, enhancing basic services, and accelerating rural development.
In the 2024/2025 financial year, the office was allocated TZS 10.125 trillion. The new request reflects a 16.35 percent increase, which the minister described as “not just an estimate of revenue and expenditure, but a roadmap of hope and a tool for accountable leadership.”
“We are not chasing political applause. We are pursuing real solutions to improve the daily lives of ordinary Tanzanians,” Mchengerwa said during his presentation.
According to the breakdown, TZS 3.95 trillion is earmarked for development projects. Of that, TZS 2.5 trillion will be sourced from domestic funding, including TZS 613.44 billion generated from local government authorities.
The remaining TZS 1.45 trillion is expected from development partners and external sources.
The lion’s share of the budget, TZS 7.84 trillion—is allocated for recurrent expenditure.
This includes TZS 6.3 trillion for salaries and TZS 1.53 trillion for other operational costs.
Out of the operational costs, local government revenues are expected to contribute TZS 1.067 trillion.
“This budget reflects our faith in President Samia Suluhu Hassan’s vision. We submit it as a working instrument, a vision of hope, and a weapon for administrative, economic, and social transformation,” Mchengerwa declared.
He emphasized the importance of unity and collaboration across all levels of government and society, calling upon regions, councils, and citizens to work together to achieve inclusive development.
“With this resolve and trust in Her Excellency, we say with great confidence, PO-RALG is the foundation of sustainable development. Every shilling has a purpose, every leader has a duty, and every citizen has a role,” he asserted.
The proposed development budget is expected to support key sectors such as education, health, water, infrastructure, and local economic empowerment programs.
Analysts view this as a timely response to pressing service delivery challenges, especially in underserved rural areas.
The budget also signals the government’s continued commitment to decentralization by empowering local government authorities through increased revenue retention and expenditure responsibilities.
Since taking office, President Samia has emphasized governance reforms that promote transparency, efficiency, and citizen engagement at the grassroots level.
The PO-RALG budget appears aligned with this national agenda, offering tools to operationalize policies such as the Third Five-Year Development Plan and the Local Government Reform Programme.
Observers expect Parliament to debate the proposal vigorously, particularly around the feasibility of external funding targets and the capacity of local authorities to generate and effectively utilize revenues.
Still, the Minister remained optimistic that “This is not just a request. It’s a promise to every Tanzanian that we are investing in their future.”