Private sector credit refers to the amount of credit extended by financial institutions (such as banks) to the private sector, which includes businesses and individuals, excluding government entities. Let's break down the information provided:

Private Sector Credit in Tanzania:

• In February 2024, private sector credit in Tanzania increased to 32,660.70 billion Tanzania Shillings (TZS) from 32,380.60 billion TZS in January 2024.

Historical Average:

• The average private sector credit in Tanzania from 2009 to 2024 was 15,298.20 billion TZS. This figure represents the typical amount of credit extended to the private sector over this period.

All-Time High:

• The highest amount of private sector credit recorded in Tanzania was 32,660.70 billion TZS in February 2024. This is the peak of credit extended to the private sector in the country.

Record Low:

• The lowest amount of private sector credit recorded in Tanzania was 4,586.90 billion TZS in February 2009. This is the lowest point of credit extended to the private sector in the country during the specified period.

The dynamics of private sector credit in Tanzania and the sustainability of the private sector:

1. Increasing Private Sector Credit: The fact that private sector credit increased from January to February 2024 indicates that there may be growing confidence in the Tanzania private sector. This could show that financial institutions are more willing to lend to businesses and individuals, which can support economic growth and sustainability.
2. All-Time High: The record high private sector credit in February 2024 shows that there may be strong demand for credit within the private sector. This could indicate that businesses are investing in expansion, innovation, or other growth activities, which can contribute to the sustainability of the private sector in the long term.
3. Historical Average: The average private sector credit over the period from 2009 to 2024 provides context for understanding trends. If the current credit levels are significantly above the historical average, it may indicate a period of rapid growth or increased economic activity within the private sector.
4. Record Low and Recovery: The record low in private sector credit in February 2009 followed by a significant recovery shows that the private sector faced challenges during that period, possibly due to economic downturns or other factors. However, the subsequent recovery and growth in private sector credit indicate resilience and potential for sustainability.

Tanzania private sector sustainability:

1. Stable and Supportive Policy Environment: The government should maintain stable economic policies that encourage investment and growth in the private sector. This includes ensuring regulatory certainty, providing incentives for entrepreneurship and innovation, and minimizing bureaucratic hurdles for businesses.
2. Access to Finance: Continued efforts should be made to enhance access to finance for businesses, especially small and medium-sized enterprises (SMEs). This can involve measures such as improving financial literacy, expanding the reach of banking services, and supporting initiatives that provide affordable credit to businesses.
3. Investment in Infrastructure: Infrastructure development is crucial for private sector growth. Investments in transportation, energy, telecommunications, and other key infrastructure can lower business costs, improve market access, and attract investment.
4. Promotion of Entrepreneurship and Innovation: Policies that support entrepreneurship and innovation can stimulate private sector growth. This includes providing training and mentorship programs, fostering collaboration between businesses and research institutions, and creating incentives for technological advancement.
5. Risk Mitigation Measures: Implementing measures to mitigate risks for businesses, such as political instability, currency fluctuations, and market volatility, can enhance private sector sustainability. This may involve providing insurance schemes, creating stable legal frameworks, and fostering a conducive business environment.
6. Promotion of Sustainable Practices: Encouraging sustainable business practices, including environmental and social responsibility, can contribute to long-term private sector sustainability. This can be achieved through incentives for green investments, support for corporate social responsibility initiatives, and regulatory frameworks that promote sustainability.
7. Investment in Education and Skills Development: A skilled workforce is essential for private sector growth. Investing in education and vocational training programs that equip individuals with relevant skills for the labor market can enhance the productivity and competitiveness of businesses.
8. Support for Export-Oriented Industries: Promoting export-oriented industries can diversify the economy, increase foreign exchange earnings, and create employment opportunities. This may involve providing incentives for export-oriented businesses, facilitating access to international markets, and improving trade infrastructure.

The Bank Lending Rate in Tanzania refers to the interest rate at which commercial banks lend money to their customers, typically businesses and individuals. It's an important indicator of the cost of borrowing for businesses and consumers in the country.

1. February 2024: The Bank Lending Rate in Tanzania decreased to 13.40 percent from 13.44 percent in January 2024. This indicates a slight decrease in the interest rate charged by commercial banks for lending during this period.
2. Historical Average: From 2003 until 2024, the average Bank Lending Rate in Tanzania stood at 13.09 percent. This indicates the long-term trend of interest rates in the country's banking sector.
3. All-Time High: The highest recorded Bank Lending Rate in Tanzania was 17.91 percent in September 2017. This was likely a period of tighter monetary policy or increased risk perception in the financial sector, leading to higher borrowing costs.
4. Record Low: The lowest recorded Bank Lending Rate in Tanzania was 7.53 percent in March 2004. This indicates a period of relatively loose monetary policy or favorable economic conditions, resulting in lower interest rates for borrowers.

These fluctuations in the Bank Lending Rate reflect changes in the Tanzania economy, monetary policy decisions by the central bank, inflation rates, and other economic factors. Lower interest rates generally encourage borrowing and stimulate economic activity, while higher rates can have the opposite effect, slowing down borrowing and spending.

Focusing on the development of the banking sector, the trends in the Bank Lending Rate in Tanzania:

Access to Credit:

Lower lending rates generally indicate greater accessibility to credit for businesses and individuals. A decrease in the lending rate, as seen in February 2024, shows that banks may be more willing to lend, potentially facilitating business expansion, investment, and consumer spending.

Investment and Economic Growth:

A lower lending rate can stimulate investment in various sectors of the economy, such as infrastructure, manufacturing, and services. This can contribute to overall economic growth and development.

Financial Inclusion:

A stable or decreasing lending rate can also encourage financial inclusion by making borrowing more affordable for a wider range of individuals and businesses, particularly small and medium enterprises (SMEs) and entrepreneurs.

Risk Management:

However, it's essential for banks to manage risks associated with lending, such as credit risk and liquidity risk. Fluctuations in the lending rate may reflect changes in the perceived riskiness of lending activities. Higher rates may be indicative of perceived higher risks in the economy or the banking sector.

Monetary Policy Impact:

The Bank Lending Rate is often influenced by the monetary policy decisions of the central bank. For instance, a decrease in the lending rate may be a result of the central bank's efforts to stimulate economic growth by lowering borrowing costs. Conversely, an increase in the lending rate may be a response to inflationary pressures or a need to cool down an overheating economy.

Competitiveness of the Banking Sector:

The average lending rate over time reflects the competitiveness of the banking sector. A lower average rate may indicate a more competitive environment among banks, leading to lower borrowing costs for consumers and businesses.

USD-TZS Exchange Rate Movement:

• On Friday, April 26, the USDTZS exchange rate increased by 10.0000 or 0.39% to 2,590.0000 from its previous rate of 2,580.0000.
• This indicates a slight strengthening of the Tanzania Shilling against the US Dollar compared to the previous trading session.

Historical Data:

• The Tanzania Shilling reached an all-time high of 3700.00 in September of 2020.
• This indicates the weakest point of the Tanzania Shilling against the US Dollar in recent history.

Forecast:

• According to TICGL macro models and analysts' expectations, the Tanzania Shilling is expected to trade at 2581.50 by the end of the current quarter.
• Looking forward, it is estimated to trade at 2647.04 in 12 months' time.
• These forecasts are based on various economic factors and market analysis.

The USDTZS exchange rate increased slightly on April 26, 2024, indicating a small strengthening of the Tanzania Shilling against the US Dollar. However, historically, the Shilling has experienced higher volatility, reaching its all-time high in September 2020. Forecast models suggest the Shilling may appreciate further in the near term and over the next 12 months.

The effects of exchange rate on Tanzania's economic growth:

1. Exchange Rate Stability: The slight increase in the USDTZS exchange rate on April 26, 2024, indicates relative stability in the Tanzania currency against the US Dollar. This stability is often indicative of a steady or improving economic environment.
2. Historical Exchange Rate Volatility: The historical data showing the Tanzania Shilling reaching an all-time high of 3700.00 in September 2020 highlights past volatility in the currency. Such volatility can have implications for economic growth, affecting investor confidence and import/export dynamics.
3. Forecasted Exchange Rate: The forecasted exchange rate for the Tanzania Shilling indicates a projected strengthening against the US Dollar. A stronger currency can reflect positive economic growth prospects, including increased investor confidence and stable macroeconomic conditions.
4. Quarterly and Yearly Forecasts: Both short-term (end of the current quarter) and longer-term (12 months' time) forecasts suggest a positive trajectory for the Tanzania Shilling, with expected appreciation against the US Dollar. This can be interpreted as a positive outlook for Tanzania's economic growth over both short and medium terms.

Tanzania's economic growth, the exchange rate stability, historical volatility, and forecasted appreciation of the Tanzania Shilling against the US Dollar indicate a generally positive outlook. It shows improving economic conditions, potentially leading to increased investor confidence, stability in trade, and overall growth prospects for the Tanzania economy.

The Tanzania All Share Index (DSEI) is the main stock market index in Tanzania, which tracks the performance of the entire equity market in the country. Here's a breakdown of the provided information:

Current Performance:

• Since the beginning of 2024, the DSEI has increased by 34 points or 1.95%.
• This data is based on TICGL on a contract for difference (CFD) that tracks the benchmark index from Tanzania.

Historical Performance:

• The DSEI reached its all-time high of 2850.15 in June 2015.
• This indicates a significant increase in the index's value from its historical level.

Current Forecast:

• As of April 27, 2024, the Tanzania All Share Index DSEI is expected to trade at 1770.01 points by the end of the current quarter.
• This forecast is derived from macro models and analysts' expectations from TICGL (presumably a financial institution or research entity).

Future Projection:

• Looking forward, it's estimated that the index will trade at 1710.75 points in 12 months' time.
• This shows a slight decrease in the index's value compared to the current forecast for the end of the quarter.

Tanzania All Share Index, providing investors with valuable data for decision-making regarding Tanzania equities.

Focusing on economic and investment perspectives:

1. Economic Growth and Stability:

• The increase in the Tanzania All Share Index (DSEI) since the beginning of 2024 indicates positive economic sentiment and growth in the Tanzania equity market.
• Historically, reaching an all-time high in 2015 shows periods of economic growth and stability in Tanzania, which could attract investors.

2. Investment Opportunities:

• The upward trend in the DSEI presents potential investment opportunities for individuals and institutions looking to invest in Tanzania stocks.
• The forecasted increase in the index over the next 12 months shows that analysts and macro models see further potential for growth in Tanzania equities.

3. Market Expectations:

• Analysts and macro models anticipate the DSEI to continue its positive trajectory, with a forecasted increase by the end of the current quarter.
• However, the projection for the index to decrease slightly in 12 months' time indicates some caution or potential challenges in the market.

Investor Confidence and Sentiment:

• The overall performance and forecasts for the DSEI reflect investor confidence and positive sentiment in the Tanzania economy and stock market.
• Investors may interpret this data as an indication of favorable conditions for investment in Tanzania equities, potentially leading to increased capital inflows.

The Tanzania All Share Index (DSEI) has increased by 34 points or 1.95% since the beginning of 2024, indicating positive economic sentiment and growth in the Tanzania equity market. Historically reaching an all-time high in 2015, the index reflects periods of economic stability and growth. Forecasts shows further growth in the short term, with the index expected to trade at 1770.01 points by the end of the current quarter. However, caution is advised as analysts anticipate a slight decrease in the index's value to 1710.75 points in 12 months' time. Overall, the DSEI presents investment opportunities, signaling investor confidence in Tanzania's economy.

Government Debt to GDP in 2022:

• Tanzania recorded a Government Debt to GDP ratio of 38.30 percent in 2022. This means that the total debt of the Tanzania government was equivalent to 38.30% of the country's Gross Domestic Product (GDP) for that year.

Historical Trends:

• From 2001 to 2022, the average Government Debt to GDP ratio in Tanzania was 35.26 percent.
• The highest recorded ratio was 50.20 percent in 2001.
• The lowest recorded ratio was 21.50 percent in 2008.

Expectations for 2023 and beyond:

• By the end of 2023, Government Debt to GDP in Tanzania is expected to decrease slightly to 37.00 percent according to TICGL macro models and analysts' expectations.
• In the long-term:
• In 2024, it's projected to be around 36.00 percent of GDP.
• In 2025, it's projected to be around 35.00 percent of GDP.

GDP Projections:

• GDP in Tanzania is expected to reach 80.43 USD Billion by the end of 2024, according to TICGL macro models and analysts' expectations.
• In the long-term:
• In 2025, GDP is projected to be around 85.25 USD Billion.
• In 2026, GDP is projected to be around 90.45 USD Billion.

These projections are based on TICGL economic models and analysts' expectations and may be subject to change due to various factors affecting the economy.

Focusing on Tanzania's economic growth:

1. Government Debt to GDP Ratio:

• Tanzania's Government Debt to GDP ratio has been fluctuating over the years but has been relatively stable around an average of 35%.
• In 2022, it increased to 38.30%, possibly indicating increased government borrowing relative to GDP.
• The projected decrease in the ratio over the coming years shows a positive trend, indicating potentially more sustainable debt levels relative to economic output.

2. GDP Growth:

• Tanzania's GDP is expected to continue growing steadily, reaching 80.43 USD Billion by the end of 2024.
• Long-term projections indicate further growth, with GDP expected to reach 85.25 USD Billion in 2025 and 90.45 USD Billion in 2026.
• This shows a positive outlook for the Tanzania economy, with steady expansion expected over the forecast period.

3. Trend Stability:

• Despite fluctuations in the debt-to-GDP ratio and GDP growth rates, there seems to be a trend towards stability.
• The government's efforts to manage debt levels and support economic growth appear to be yielding results, as reflected in the projected decrease in the debt-to-GDP ratio and steady GDP growth.

Tanzania's economy is on a path of stable growth, with efforts to manage debt levels and stimulate economic activity showing promising signs for the future.

The unemployment rate in Tanzania refers to the percentage of the labor force that is without a job and actively seeking employment:

1. Unemployment Rate in 2022 and 2021:

• In 2022, the unemployment rate in Tanzania decreased to 8.90 percent from 9 percent in 2021.
• This indicates a slight improvement in the employment situation from the previous year.

2. Historical Average:

• The average unemployment rate in Tanzania from 2001 until 2022 was 10.31 percent.
• This shows that over this period, Tanzania has generally experienced a relatively high unemployment rate.

3. All-Time High and Low:

• The highest unemployment rate recorded in Tanzania was 12.90 percent in 2001.
• The lowest unemployment rate recorded was 8.90 percent in 2022.

4. 2024 Projection:

• The unemployment rate in Tanzania is expected to reach 8.80 percent by the end of 2024.
• This projection is based on TICGL macroeconomic models and analysts' expectations.

5. Long-Term Projection:

• In the long term, the unemployment rate in Tanzania is projected to trend around 8.90 percent in 2024 and 9 percent in 2025.
• These projections are based on econometric models.

While there has been a slight improvement in the unemployment rate in Tanzania, it is expected to remain relatively stable in the coming years, with some fluctuations around the 8.90 to 9 percent range.

Tanzania's unemployment rate and country's economic growth:

1. Decreasing Unemployment Rate: The fact that the unemployment rate decreased from 9% in 2021 to 8.90% in 2022 shows that there might be some positive developments in the economy. Lower unemployment rates often indicate increased economic activity and growth.
2. Long-Term Stability: Despite fluctuations, the long-term trend is projected to be relatively stable, with the unemployment rate hovering around 8.90% in 2024 and 9% in 2025. This stability can be indicative of a balanced and steady economic growth trajectory.
3. Historical Context: Although the average unemployment rate from 2001 to 2022 was 10.31%, the current rates are lower than this average. This shows that there may have been improvements in the labor market over time, which could be attributed to economic growth and development initiatives.
4. Projections: The projections for 2024 show a further decrease in the unemployment rate to 8.80%. This could imply expectations of continued economic growth and possibly increased job creation opportunities.

The decreasing unemployment rate, stable long-term projections, and historical context suggest a positive outlook for Tanzania's economic growth. Lower unemployment rates often accompany economic expansion, indicating that businesses are hiring more workers and contributing to overall economic activity.

Note: The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force, then multiplying by 100 to express it as a percentage. Here's the formula:

1. Number of Unemployed: This refers to the total number of people who are without a job but actively seeking employment. This includes individuals who are able to work, available for work, and actively seeking employment.
2. Labor Force: This includes all people who are either employed or unemployed and actively seeking employment. It doesn't include those who are not actively participating in the labor market, such as students, retirees, or individuals not seeking work.

In March 2024, the cost of food in Tanzania increased by 1.40 percent compared to the same month in the previous year. This indicates a moderate rise in food prices over that period.

Looking at a broader trend, the average food inflation in Tanzania from 2010 to 2024 was 8.05 percent. However, there have been significant fluctuations within this period. The highest recorded food inflation was 27.84 percent in January 2012, while the lowest was 0.10 percent in March 2019.

According to TICGL macro models and analysts' expectations, food inflation in Tanzania is anticipated to be 1.20 percent by the end of the current quarter. This suggests a relatively stable, but slightly lower, inflation rate compared to March 2024.

In the long term, the projection for Tanzania's food inflation is as follows:

• 2025: Around 1.40 percent
• 2026: Around 1.30 percent

These projections are based on econometric models and indicate a gradual but overall stable trend in food inflation for the upcoming years. It suggests a modest increase in food prices but at a relatively low rate compared to historical highs.

Tanzania's economic stability through Food Inflation Trends:

While Tanzania has experienced some variability in food inflation in the past, the current and projected figures indicate a degree of stability in the economy. The moderate and controlled inflation rates suggest that economic policymakers are likely implementing effective measures to maintain stability and manage inflationary pressures.

1. Moderate Food Price Increase: The 1.40 percent increase in food prices in March 2024 suggests that inflation is present but at a manageable level. Moderate inflation indicates that the economy is not overheating or experiencing significant price instability.
2. Historical Variability: Tanzania has experienced significant fluctuations in food inflation over the years, with highs of 27.84 percent in 2012 and lows of 0.10 percent in 2019. While this indicates some volatility, it's worth noting that recent figures have been within a more stable range.
3. Current and Short-Term Outlook: The projection of 1.20 percent food inflation by the end of the current quarter indicates a stable and relatively low inflationary environment in the short term. This suggests that policymakers may be effectively managing inflationary pressures.
4. Long-Term Stability: The long-term projections for food inflation in Tanzania (1.40 percent in 2025 and 1.30 percent in 2026) suggest that policymakers and analysts expect the economy to remain relatively stable over the next few years. These projections indicate a controlled inflation rate, which is important for economic stability.

In February 2024, Tanzania's external debt stood at TZS 82,678,629 million, reflecting a decrease of 3% from the previous month's figure of TZS 85,477,630 million. However, compared to the same period last year, there was a notable increase of 12%. This suggests a continuing trend of growing external debt, albeit with a slight monthly decline.

On the other hand, Tanzania's domestic debt increased to TZS 31,241,500 million in February 2024, marking a 2% rise from January 2023's figure of TZS 30,505,400 million. Compared to the same period last year, domestic debt has seen a significant increase of 15%, indicating a considerable expansion in the country's internal borrowing.

When considering the total debts, including both external and domestic, Tanzania's total debt amounted to TZS 113,920,129 million in February 2024. This reflects a decrease of 2% from the previous month's total debt of TZS 115,983,030 million. However, compared to the same period last year, there is a noticeable increase of 13% in total debts.

While there has been a slight decrease in total debt from the previous month, the overall trend is one of increasing indebtedness for Tanzania. The rise in both external and domestic debts indicates that the government is relying on borrowing to finance its development projects and meet its financial obligations. This could raise concerns about the country's debt sustainability and its ability to service these debts in the long term, especially considering the significant year-on-year increase in debt levels.

Tanzania's debts indicate impacts regarding its economic growth:

Reliance on External Financing:

The increasing external debt suggests that Tanzania is relying on borrowing from foreign sources to fund its development projects and meet its financial needs. This could indicate that the country lacks sufficient domestic resources or access to capital markets at favorable rates to finance its economic activities. While external borrowing can provide short-term solutions for financing development, it also exposes the country to risks such as exchange rate fluctuations and higher interest payments, which could affect its economic stability.

Investment in Domestic Development:

The rising domestic debt implies that Tanzania is also focusing on financing its economic growth through internal borrowing. This could indicate that the government is investing in infrastructure, social programs, or other development initiatives to stimulate economic activity within the country. However, an increasing domestic debt burden could potentially crowd out private investment and lead to higher interest rates, which may hinder long-term economic growth.

Debt Sustainability Concerns:

The significant year-on-year increase in total debts raises concerns about Tanzania's debt sustainability. While borrowing can be a useful tool for financing development, excessive debt accumulation without corresponding economic growth can lead to debt distress and financial instability. It's essential for Tanzania to ensure that its borrowing is productive and that debt levels remain manageable relative to its economic output and revenue generation capacity.

Impact on Economic Growth:

While borrowing can provide short-term stimulus to economic growth by financing infrastructure projects and other development initiatives, sustained economic growth requires more than just debt accumulation. Tanzania needs to ensure that its borrowing is being used effectively to invest in projects that will generate long-term economic benefits, such as improving productivity, enhancing human capital, and promoting sustainable development.

Tanzania's debt data reflects a mixed picture for economic growth. While borrowing can support investment and development, there are also risks associated with rising debt levels, both domestically and externally. It's crucial for Tanzania to manage its debts prudently, invest in projects that promote sustainable economic growth, and work towards improving its revenue generation capacity to ensure long-term economic stability and prosperity.

Interbank Cash Market

The interbank cash market (IBCM) continued to facilitate the trading of Shilling liquidity among banks. In February 2024, the total value of transactions in the IBCM decreased to TZS 1,604.9 billion from TZS 2,187.8 billion traded in the previous month (see Chart 2.4.2). Seven-day transactions dominated the market, accounting for 67.1 percent of the total market turnover. The overall IBCM interest rate decreased to 7.20 percent from 7.27 percent in the preceding month.

Interbank Foreign Exchange Market

The Interbank Foreign Exchange Market (IFEM) witnessed sustained high demand for foreign currencies, particularly the US dollar. This demand is attributed to reduced seasonal inflows from tourism and export crops, coinciding with tightening monetary policies in advanced economies. In response, the Bank intervened by selling USD 35.8 million in the IFEM during the month (see Chart 2.4.3). Reflecting prevailing foreign exchange liquidity conditions, the Shilling traded at an average rate of TZS 2,547.74 per US dollar, compared to TZS 2,520.68 per US dollar in the preceding month. Year-on-year analysis indicates that the Shilling experienced a depreciation of 8.9 percent compared to 0.5 percent in the same period in 2023.

Tanzania's economic development:

Interbank Cash Market (IBCM):

• Decrease in total value of transactions indicates a possible slowdown in economic activity.
• Dominance of 7-day transactions suggests short-term liquidity management among banks.
• Decrease in the overall IBCM interest rate may signal efforts to stimulate borrowing and investment.

Interbank Foreign Exchange Market (IFEM):

• High demand for foreign currencies, especially the US dollar, indicates significant external trade activity.
• Reduced seasonal inflows from tourism and export crops highlight potential vulnerabilities in certain sectors.
• Interventions by the central bank to stabilize the exchange rate reflect efforts to maintain macroeconomic stability.
• Year-on-year depreciation of the Shilling suggests challenges in maintaining currency value, possibly due to factors such as inflation or external pressures.

In February 2024, the Tanzania government's budget performance was evaluated based on actual operations compared to the budget estimates for the fiscal year. The government expenditure and revenue figures provide insight into the financial management of the country during this period.

Government Expenditure:

1. Wages and Salaries: Actual expenditure on wages and salaries in 2024 was TZS 870.2 billion, which was lower than the budget estimate of TZS 947.9 billion, indicating an 8% decrease.
2. Interest Costs: The government spent TZS 264.6 billion on interest costs, which was less than both the budget estimate of TZS 290.4 billion and the actual expenditure in 2023. This represents a 9% decrease from the estimated amount.
3. Development Expenditure: Actual development expenditure in 2024 amounted to TZS 914.6 billion, compared to the budget estimate of TZS 1,087.2 billion. This indicates a 16% decrease from the estimated amount.
4. Other Recurrent Expenditure: Other recurrent expenditure exceeded the budget estimate by reaching TZS 1,154.4 billion, significantly higher than both the actual expenditure in 2023 and the budget estimate for 2024. This represents a 37% increase from the estimated amount and 4% over the actual operations.

Government Revenues:

1. Taxes on Imports: The government collected TZS 711.2 billion from taxes on imports, which was slightly lower than the budget estimate of TZS 742 billion, resulting in a 4% decrease.
2. Income Tax: Income tax revenues exceeded the budget estimate by reaching TZS 558.3 billion, compared to the estimated amount of TZS 546 billion, showing a 2% increase.
3. Tax on Local Goods and Services: Actual revenue from tax on local goods and services was TZS 433 billion, lower than the budget estimate of TZS 494.7 billion, indicating a 12% decrease.
4. Other Tax: Revenue from other taxes was TZS 115.4 billion, slightly below the budget estimate of TZS 126.2 billion, resulting in a 9% decrease.
5. Non-Tax Revenues: Non-tax revenues amounted to TZS 305.9 billion, falling short of the budget estimate by 18% and indicating a significant decrease from the actual operations in 2023.

Deficit: The deficit for the fiscal year was TZS 45% higher than the estimated amount, indicating a significant gap between government spending and revenue generation. This deficit is a concern as it suggests potential financial strain on the government's budgetary management.

Tanzania government's budget performance and its influence on economic growth:

1. Decrease in Development Expenditure: The 16% decrease in actual development expenditure compared to the budget estimate suggests a potential slowdown in investment in infrastructure, education, and other sectors crucial for long-term economic growth. Limited investment in development projects may hinder Tanzania's ability to improve productivity and competitiveness, thus impacting economic growth prospects.
2. Exceeding Other Recurrent Expenditure: The significant increase (37%) in other recurrent expenditure, which includes items like administrative costs and maintenance, indicates potential inefficiencies in spending. While some increase may be justified for essential services, an excessively high growth rate in recurrent expenditure could divert funds away from more productive investments, possibly hindering economic growth.
3. Revenue Shortfalls: The shortfall in tax revenues, particularly from non-tax sources (-41%), suggests challenges in revenue collection. Lower-than-expected revenues could constrain the government's ability to finance development projects and provide essential services, thereby limiting economic growth opportunities.
4. Deficit Increase: The fact that the deficit is 45% higher than estimated indicates that the government is spending more than it is earning, which can have negative implications for economic stability. A large deficit could lead to increased borrowing or reliance on monetary financing, potentially leading to inflationary pressures and reduced investor confidence, both of which can hamper economic growth.

The budget performance suggests potential challenges in fiscal management that could impact Tanzania's economic growth. To foster sustainable growth, the government may need to address issues such as inefficient spending, revenue collection, and deficit management while prioritizing investment in key sectors that drive long-term economic development.