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Category Issue 1

The Contribution of Fiscal Policy to Resource Allocation in Tanzania

Abstract – In Tanzania literature explores that fiscal policies have not been adequately implemented to achieve the desired monetary financial goals at the time the country has very limited financial resources to support its economic development. Despite fiscal policy’s fragility regarding implementation the contribution of fiscal policies to resource allocation have never been investigated in Tanzania. The contemporary study is aiming to evaluate the contribution of fiscal policies on resource allocation during the period 2009 to 2018 in Tanzania. To undertake the study objective, the simple regression model was applied to assess the contribution of fiscal policy to the resource allocation during the period 2009 to 2018 in Tanzania. The study employed the time series data from the World Bank during the period 2009 to 2018 in Tanzania. On evaluation of the contribution of fiscal policy to the resource allocation the study assumes fiscal policy to be the independent variable and resource allocation to be dependent variables of the study. The findings of the study were in fact interesting. The findings of the study revealed that there is a positive and meaningful relationship between the fiscal policy and the resource allocation during the period 2009 to 2018 in Tanzania. That means the fiscal policy had a meaningful contribution to the resource allocations during the period 2009 to 2018 in Tanzania. Keywords: Tanzania, fiscal policy, resource allocation [Cite as: Sansa, N. A. (2020). The Contribution of Fiscal Policy to Resource Allocation in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 18-22.]

Assessment of the Influence of Fiscal Policy to Fiscal Equalisation in Tanzania

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.]

Analysis of Tanzania Government Revenue Capability on Managing Public Debt: Ordinary Least Square Evidence

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…

The Contribution of Fiscal Policy on Governing the Public Debt in Tanzania

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.]

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