Abstract – The fundamental role of the fiscal policy is to govern and pilot the public spending of the particular government. However, with the recent rapidly growing of the Tanzania public debt no studies have been undertaken to investigate the contribution of fiscal policies on governing the public debt in Tanzania. From that reference the study’s objective is to investigate the contribution of the fiscal policy on governing the public debt during the period 2009 to 2018 in Tanzania. To accomplish the study’s goal, the researcher used a linear regression model to evaluate the contribution of fiscal policy on governing the public debt during the period 2009 to 2018 in Tanzania. Time series data for fiscal policy and public debt from the World Bank and Bank of Tanzania Annual Report during the period 2009 to 2018 for Tanzania were used for the study. In the process of evaluating the contribution of the fiscal policy, the study assumed the fiscal policy to be the independent variable while the public debt to be the dependent variable of the study. The study findings showed that there is a negative and insignificant relationship between the fiscal policy and the public debt during the period 2009 to 2018 in Tanzania. The meaning is, the fiscal policy did not have a contribution on governing the public debt in Tanzania.
Keywords: Tanzania, fiscal policy, public debt
[Cite as: Sansa, N. A. (2020). The Contribution of Fiscal Policy on Governing the Public Debt in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 1-5.]
