EAC Finance ministers harmonize national budget dates and tax frameworks

ARUSHA, Tanzania — Finance ministers from the East African Community have agreed to read their national budgets simultaneously on June 11 as part of a coordinated regional approach to fiscal policy and tax harmonization.

The decision was reached during the 18th Meeting of the Sectoral Council on Finance and Economic Affairs held May 11-15 in Arusha.

Uganda’s Acting Minister of Finance, Planning and Economic Development, Ramathan Ggoobi, chaired the meeting and urged member states to move from declarations to practical implementation.

“Citizens expect concrete benefits from the EAC, including increased trade, jobs, investment and improved livelihoods,” Ggoobi said, calling for sustainable financing and stronger institutional capacity.

The council adopted a common budget theme for the 2026-27 fiscal year focused on deepening regional integration and economic resilience through improved security, domestic revenue mobilization and digital transformation.

During the session, partner states reported continued economic recovery despite global uncertainties. Uganda reported economic growth of 6.7 percent in the first half of the current fiscal year, up from 5.8 percent during the same period last year, driven by agriculture, industry and services.

Ministers reviewed progress on harmonizing domestic taxes and aligning excise duty frameworks for locally produced goods to eliminate trade inconsistencies within the community.

The council also evaluated macroeconomic convergence targets. These goals include keeping inflation below 8 percent, maintaining fiscal deficits below 3 percent of gross domestic product, and holding foreign exchange reserves equal to at least 4.5 months of imports. Uganda, Tanzania and Rwanda have successfully kept inflation within those agreed thresholds.

To support economic stability and investor confidence, the ministers discussed measures to strengthen public financial management systems, including the harmonization of treasury systems, fiscal frameworks and budget credibility mechanisms. They also called for accelerated reforms to ensure predictable and equitable funding for EAC institutions.

The meeting drew delegations of finance ministers, permanent secretaries and economic planning officials from across the partner states, along with representatives from the EAC Secretariat.