PRIME Minister Dr Mwigulu Nchemba has ordered sweeping austerity measures across government ministries, agencies and local authorities, declaring a ban on non-essential expenditures after warning that wasteful spending is starving critical development projects of funds.

Speaking during the launch of New MV Mwanza, a major vessel capable of carrying 1,200 passengers, 400 tonnes of cargo and over 20 vehicles, the PM delivered a stern warning to public officials regarding fiscal indiscipline.

Dr Nchemba said the government would “tighten its belt” by cutting all forms of discretionary spending, including printing of calendars, diaries, congratulatory cards, ceremonial events, corporate gift packages and other items he described as “unnecessary luxuries”.

He said it was unacceptable that contractors implementing major public projects were either working without timely payments or abandoning sites due to lack of funds while government offices continued to finance activities that bring “no productive value to citizens.”

“We must do something about this. We need a full assessment of all projects where contractors have signed contracts but have not received funds,” he said.

He ordered the Ministry of Finance to review all budget lines except those related to defence, security and health — and reallocate funds towards delayed development projects that directly benefit citizens, whom he described as “the producers and the taxpayers”.

Dr Nchemba criticized the entrenched culture of government departments spending millions on branded calendars, notebooks, decorative gifts and celebratory ceremonies at the expense of core public services.

“Why are we still printing calendars and notebooks when the President has already directed us to go digital? Why waste taxpayers’ money while citizens are suffering and projects are stuck?” he said, adding that even beverages and flowers purchased for formal gifting were unnecessary.

The PM also questioned the rationale behind frequent procurement requests for new government vehicles, warning ministries not to touch defence and health allocations but emphasizing that all other sectors must eliminate non-priority spending.

“Cut what is not necessary. Delete these habits. Some even exchange sugary drinks as gifts when doctors have already warned against them,” he said.

Dr Nchemba extended the directive to municipal councils and local authorities, ordering them to scrutinise their budgets and eliminate wasteful activities.

He criticised the proliferation of committees within councils, saying many existed only to distribute positions rather than solve urgent community challenges such as land disputes, market space for informal traders, or parking areas for motorcycle and tricycles operators.

“We cannot spend five years sharing positions while citizens face real problems,” he said.

Transport Minister Prof Makame Mbarawa urged citizens to safeguard the vessel, saying public assets are funded by taxpayers and require community stewardship.

Mwanza Regional Commissioner Said Mtanda thanked the government, noting that the new vessel would improve connectivity across the Lake Zone and reduce travel costs between Mwanza and Bukoba.

Legislators from Mwanza Region raised concerns over stalled roads, water supply challenges and delayed strategic railway projects but commended the completion of New MV Mwanza, saying it would boost regional economic integration and reduce transport-related risks.