This policy brief explores on Tanzania’s budget deficit as it rose 15-fold from TZS 0.4 trillion to TZS 6 trillion between 1999/00 and 2020/21. The brief has it that generally, the budget deficit has been financially manageable as the country’s debt service has not exceeded the economy’s ability to continuously fund it. However, the consequences of the rising cost of debt service are vivid in the marginalization of other charges (OC) in the public expenditure priorities. It also explores that the declining OC has reduced the policy space, the performance of the expanding public infrastructure, and, therefore, the developmental impact of public expenditures. READ ON…
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