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Government Expenditure on Growth Strategies and Poverty Reduction in Tanzania. What Have we learned?

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  • Kazungu, Khatibu G. M.
  • Cheyo, Mudith B.

Abstract

This paper explores the relationship between the reduction in income-poverty and government expenditure on growth strategies that have been implemented in Tanzania since the mid 2000s. The paper shows that despite impressive economic growth of about 6 percent per annum that the country has enjoyed in the course of implementing growth strategies over the past few years, poverty has declined marginally and remains pervasive in the rural sector. This paper argues that growth strategies in Tanzania have not helped to reduce income poverty significantly because government expenditures to finance such strategies have been allocated to investment in social services which reduce income poverty indirectly and as such, effects take time to be realized. This paper argues that rural income diversification coupled with substantial investment in agricultural sector remain paramount as a panacea to reducing income poverty; and improvement in the quality of life and social wellbeing.

Suggested Citation

  • Kazungu, Khatibu G. M. & Cheyo, Mudith B., 2014. "Government Expenditure on Growth Strategies and Poverty Reduction in Tanzania. What Have we learned?," African Journal of Economic Review, African Journal of Economic Review, vol. 2(1), January.
    • Handle: RePEc:ags:afjecr:264293
    DOI: 10.22004/ag.econ.264293
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    Cited by:

    1. You, Kefei & Bianco, Silvia Dal & Amankwah-Amoah, Joseph, 2020. "Closing Technological Gaps to Alleviate Poverty: Evidence from 17 Sub-Saharan African Countries," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    2. Cordelia Onyinyechi Omodero, 2019. "Government Sectoral Expenditure and Poverty Alleviation in Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(1), pages 80-90, June.
    3. Atta Ullah & Zhao Kui & Saif Ullah & Chen Pinglu & Saba Khan, 2021. "Sustainable Utilization of Financial and Institutional Resources in Reducing Income Inequality and Poverty," Sustainability, MDPI, vol. 13(3), pages 1-25, January.

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    Keywords

    Financial Economics;

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