Ministry of Finance

Tanzania’s national development agenda is guided by both National and International Development Frameworks. The main National Development Framework under review is Long Term Perspective Plan (LTPP) 2025 which is implemented in Five Years Phases. The First Phase was implemented between 2011/12 and 2015/16 followed by the Second Phase which is currently under implementation 2016/17 – 2020/21 and the final Phase will be implemented between 2021/22 and 2025/26. Implementation of Second Phase is under review to be in line with regional and international development frameworks like Agenda 2063 and Sustainable Development Goals (SDGs) 2030. The primary role of the Ministry of Finance in realization of the National Development Agenda is to formulate and implement prudent macroeconomic policies for better transformation of socio-economic development, which focuses on promoting inclusive and sustainable economic growth.

The Ministry developed its first Strategic Plan 2012/13 – 2016/2017 as a tool for implementation of the First Five Year Development Plan 2011/12 – 2015/16. The Plan intended to achieve national goals and objectives, particularly economic growth and poverty reduction through efficient and effective allocation of resources to income generating activities, supportive infrastructures and improvement of service delivery. This resulted into stability of macroeconomic variables whereas GDP recorded a growth of 4.5 percent in 2012 compared with growth of 6.8 percent in 2017; inflation slowed down from 5.4 percent in 2012/13 to 3.7 percent 2016/17; revenue to GDP ratio increased from 12.8 percent in 2012/2013 to 14.3 in 2016/2017; and the public debt remained sustainable in short, medium- and long-term perspective.

The Second Strategic Plan 2017/18 – 2021/22 intends to endure prudent fiscal and monetary policies to support high economic growth led by industrial sector, macro-economic stability, sound financial management and containing the public debt to sustainable levels. The targets for macroeconomic performances are: annual economic growth by 7.7 percent; maintain inflation rate at single digit (5.1 percent); increase domestic revenue to GDP ratio by 15.9 percent for the next five years (2017/18 – 2021/22); pursue affordable lending rates and maintain public debt in line with national and international standards.

The Ministry has conducted midterm review of the second Strategic Plan (SP), of which the following are the notable achievements: GDP recorded a growth of 6.8 percent in 2016/17 compared with growth of 7.0 percent in 2018/19; inflation slowed down from 5.4 percent in 2016/17 to 3.5 percent in 2018/19; tax revenue to GDP ratio increased from 12.4 in 2016/2017 to 13.3 percent in 2018/19; and the public debt remained sustainable in short, medium- and longterm perspective. The Debt Sustainability Analysis revealed that, the present value of the public debt to GDP was 38.94 percent in 2017/18 compared to the threshold of 70 percent.

Implementation of the second SP comes to an end in the next two years (2020/21-2021/22). Therefore, the main focus of the MOF is to continue ensuring prudent macroeconomic management, public finance management through effective resources mobilization, allocation, utilization and monitoring and evaluation. The Ministry’s Management and Staff in particular, will continue to maintain the capacity and ability to successfully implement this Strategic Plan.

Download MOF Strategic Plan