DODOMA: MEMBERS of Parliament have urged the government to ensure that strong economic growth translates into tangible improvements in citizens’ livelihoods.
They argued that poverty reduction must remain at the centre of the country’s development agenda as implementation of Vision 2050 begins.
Contributing to the debate on the 2026/27 national budget in the National Assembly yesterday, legislators commended President Samia Suluhu Hassan for maintaining macroeconomic stability and sustaining economic growth.
Mkinga MP Twaha Mwakioja (CCM) praised President Samia for steering the economy to a growth rate of 5.9 per cent, with projections indicating it could reach 6.3 per cent, while citing significant improvements in education, health and water services.
However, he stressed that economic growth should ultimately be measured by its ability to reduce poverty and improve people’s welfare.
“Everything we are doing such as building roads, schools, hospitals and water infrastructure is intended to serve Tanzanians. Economic growth must remove poverty and create prosperity,” he said.
As Tanzania prepares to implement Vision 2050, Mr Mwakioja called for an inclusive economic model that directly benefits citizens, particularly those living in rural areas.
He said agriculture, livestock and fisheries should remain the backbone of the country’s poverty reduction strategy, noting that they support the majority of Tanzanians.
While commending increased government investment in productive sectors, he argued that the challenge lies in ensuring resources reach intended beneficiaries.
“We have failed to translate economic growth into poverty reduction because funds allocated to these sectors often remain within project documentation and administrative structures instead of reaching farmers, livestock keepers and fishermen,” he said.
Mr Mwakioja added that directing development funds to producers at the grassroots level would significantly accelerate poverty reduction.
Citing research conducted in Sub-Saharan Africa, he said pro-poor economic growth of 10 per cent could reduce poverty levels by between 10 and 20 per cent.
Meanwhile, Bunda MP Esther Bulaya (CCM) called for greater investment in domestic fertiliser and seed production, noting that more than 65 per cent of Tanzanians depend on agriculture for their livelihoods.
She commended the government’s efforts to increase domestic financing, describing it as a major step towards economic independence.
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“A self-reliant budget is a matter of national dignity. It reflects a country’s ability to finance its own development without excessive dependence on external support,” she said.
Ms Bulaya also welcomed the removal of 374 fees and charges, saying the move would improve the business environment and attract more investors.
She further supported the proposed one-year tax grace period for new businesses to allow entrepreneurs time to establish and grow their enterprises.
On his part, Mr Abdulla Ali Mwinyi (NominatedCCM) urged the government to widen the tax base rather than increase pressure on existing taxpayers, noting that nearly 45 per cent of the economy remains outside the formal tax system.
“The problem is not TRA’s performance. The challenge lies in expanding the tax net so that more economic actors participate in financing national development,” he said.
Mr Simon Lusengekile (Busega-CCM) called for reduced reliance on external borrowing and suggested that Tanzania considers clearing its outstanding debt with the International Monetary Fund (IMF) to strengthen its bargaining position in future financing negotiations.
In another development, Mr Kenneth Nollo (BahiCCM) proposed the removal of Value Added Tax (VAT) on cooking gas and donor-funded water projects to make clean energy more affordable and improve access to safe water.
He also called for a review of electricity tariffs, arguing that lower costs could stimulate industrial production and increase electricity consumption.
Mr Joseph Musukuma (Geita-CCM) commended the Tanzania Revenue Authority (TRA) for improving relations with taxpayers and creating a more business-friendly environment.
He noted that, unlike previous budget debates, legislators had raised few complaints about tax administration, attributing the change to reforms that have strengthened dialogue between taxpayers and revenue officials.