Abstract – Literature revealed that the Tanzania intergovernmental transfer system has not put in place the fiscal equalisation mechanism to offset the revenue tax collection and public expenditures differences to its sub government local authorities while serving the public. However, the influence of fiscal policy to the fiscal equalisation has never been addressed in Tanzania. This study is focusing on assessing the influence of fiscal policy to the fiscal equalisation during the period 2009 to 2018 in Tanzania. To accomplish the study’s objective, the study used the simple linear regression model to assess the influence of fiscal policy to the fiscal equalisation during the period 2009 to 2018 in Tanzania. The study employed the Time series data during the period 2009 to 2018 from the World Bank. During the process of assessing the influence of the fiscal policy to the fiscal equalisation in Tanzania, the study assumed fiscal policy to be the independent variable while revenue and expenditure to be the dependent variables of the study. The findings of the study were in actual fact interesting. The study findings revealed that there is a negative and insignificant relationship between fiscal policy and all dependent study’s variables (revenue and expenditures) during the period 2009 to 2018 in Tanzania. That means the fiscal policy does not have influence on the fiscal equalisation during the period 2009 to 2019 in Tanzania.
Keywords: Tanzania, fiscal policy, fiscal equalisation
[Cite as: Sansa, N. A. (2020). Assessment of the Influence of Fiscal Policy to Fiscal Equalisation in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 12-17.]