Abstract – Currently Tanzania public debt is rapidly growing to the extent the country is using 40% of domestic revenue collected to service the public debt at a time more funds are required to facilitate necessary government budget and developments projects towards accomplishing the priority industrialisation agenda for sustainable economic development in Tanzania. Despite that fact, no studies have been done to analyse the capability of the government revenue on managing the public debt in Tanzania. The present study’s objective is to analyse the Government revenue capability on managing the public debt during the period 2009 to 2018 in Tanzania. From that regard the study applied the Ordinary Least Square (OLS) Method to analyse the capability of the government revenue on managing the public debt during the period 2009 to 2018 in Tanzania. The study applied the time series data during the period 2009 to 2018 from the World Bank to accomplish the study’s objective. To investigate the capability of the government revenue on managing the public debt, the study computed the average annual percentage marginal change of the government public debt and the government revenue during the period 2009 to 2018 in Tanzania. The study findings revealed that the public debt annual average marginal change is positive and its trend continuously changes in a double digit form while the government revenue is positive and the annual average marginal change trend is continuously in a single digit form throughout the study period from 2009 to 2018 in Tanzania. Since the average percentage annual marginal change trend of the public debt is in double digit form while the government revenue changes trend is in a single digit form, that means the government revenue was incapable to manage the public debt during the period 2009 to 2018 in Tanzania.
Keywords: Tanzania, government revenue, public debt
[Cite as: Sansa, N. A. (2020). Analysis of Tanzania Government Revenue Capability on Managing Public Debt: Ordinary Least Square Evidence. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 6-11.]