Fiscal Operations, Money Supply and Inflation in Tanzania

The Tanzanian economy has experienced many internal and external shocks since the late 1970s. All sectors of the economy have been affected by the shocks, whose manifestations have been, among other things, large budget deficits and an imbalance between productive and non-productive activities. The signs closely associated with these are large balance of payments deficits, high rates of inflation, declining domestic savings, growing government expenditure, falling agricultural production, decreased utilization of industrial capacity, poor transportation infrastructure and poor levels of social services.