DODOMA, May 22 -- THE government has allocated 800bn/- in the 2026/27 financial year for the payment of verified arrears owed to contractors, suppliers and public servants, in a move aimed at clearing outstanding obligations and improving cash flow in the economy.

Deputy Minister for Finance, Mr Mshamu Munde, told the National Assembly yesterday that the allocation forms part of ongoing efforts to systematically settle verified domestic arrears while strengthening fiscal discipline across public institutions.

“The Ministry has continued to prioritise debt repayment. In the 2025/26 financial year, 700bn/- was set aside for the settlement of arrears, out of which 477.6bn/- had already been disbursed by February 2026,” he said....