The government has announced that any funds left unused by the end of the fiscal year will be returned to the Government’s Central Treasury.
This policy is part of an ongoing effort to ensure accountability and transparency in the management of public resources, ensuring that every cent allocated in the national budget is used effectively for the country’s development.
Dr. Mwigulu Lameck Nchemba, the Minister for Finance, made this statement in Parliament, responding to a question from Tandahimba MP, Katani Ahmad Katani.
The MP had raised concerns about when the government would return funds taken by the Treasury for projects that were not fully executed within the designated period.
"It is crucial that we manage taxpayer money with the utmost care. Any unused funds by the end of the year lose their validity for their intended purpose and must be returned to the Central Treasury," Dr. Nchemba stated.
Dr. Nchemba explained that, according to Section 29 of the Budget Act, CAP 439, any funds that remain unspent by the end of the fiscal year are no longer valid and must be returned to the Treasury.
This measure is intended to reinforce the government's commitment to upholding financial discipline. "This is part of our broader strategy to ensure that the allocated budget is used responsibly and efficiently for the benefit of the Tanzanian people," he added.
The Minister further elaborated that if certain projects or activities are not completed by the year’s end, the relevant budget line must account for those projects in the subsequent budget.
"If a project remains incomplete, it will require additional budgeting, and we will need to receive requests for supplementary funds, supported by documents that show progress on the project," Dr. Nchemba clarified.
This ensures that projects continue with the necessary resources, without being delayed or abandoned.
Dr. Nchemba emphasized that the government’s ultimate goal is to ensure that all public projects, regardless of their scale, are completed on time to contribute to the country’s growth and development.
"Our commitment is to see every project delivered, as it’s a direct investment in the future of our citizens. The resources should never be left unused; they must serve their intended purpose," he stressed.
The Minister also highlighted that this policy fosters transparency in government spending. "We want the people of Tanzania to trust that their taxes are being used efficiently. By returning unused funds, we’re showing accountability and reinforcing our commitment to good governance," he said.
The government’s policy on unused funds is a significant step toward ensuring responsible financial management.
By adhering to this practice, the government aims to maximize the impact of public spending and continue its efforts to bring development to all corners of the country.