This archive report was first published on 11 November 2019.
As of August this year, Tanzania's public debt stood at $22.5 billion, a $1.3 billion increase from the $21.2 billion recorded last year.
Finance and Planning Minister Philip Mpango attributed the rise in debt to new loans secured to undertake public projects, with external loans amounting to $16.5 billion and internal debt standing at $6 billion.
According to the minister, Tanzania's debt-to-GDP ratio is set to rise to 43.6 per cent this year from 41.4 per cent last year, placing the country among the lesser indebted economies in the East African Community.
Despite the increase in debt, the government maintains that the national debt remains on a sustainable level, tolerant in the short, medium, and long term by international standards.
‘The government continues to keep debt sustainable by ensuring that borrowed loans are directed to national development projects,’ Dr Mpango said.
The Finance Minister also highlighted the country's stable economy, with real GDP growing by an average of 6.4 per cent per year over the past decade (2009-2018).
Additionally, Tanzania's revenue collection is on the rise, with $1.9 billion in taxes collected in the first quarter of the financial year and a record $759 million revenue recorded in September alone.
The government plans to increase the 2020/2021 budget by 3.79 per cent, with a total expenditure of $14.8 billion from domestic and external sources.
