A Research Report Submitted to Mzumbe University – Mbeya Campus College in Partial/Fulfillment of the Requirement for the Award of Bachelor Degree in Accounting and Finance in Business Sector (BAF BS) of Mzumbe University
In many developing countries especially those located in Africa facing the problem of economic growth even though some of the countries their economic growing in an acceptable rate like Tanzania but other countries facing economic crises due to poor government policy, misuse of public funds, corruption practice and inefficiency of the some of the government officers. This study focused on the impact of recurrent public expenditure on economic growth in Tanzania, with the aims to identify categories of recurrent public expenditure, also to examine the contribution of recurrent public expenditure to the economic growth of Tanzania and to determine the distinctive challenges facing the government of Tanzania in disbursing payment for recurrent public expenditure.
The study was conducted by using a case study design and a sample size of 34 respondents were drawn from 52 totals Population. Sampling technique that were used are simple random sampling because much of the respondents are the ones to whom they supervise the allocation and implementation of the departmental budget. The data collection method used was primary data which involved questionnaire together with interview and observation method. The data collected were analyzed by using Microsoft Excel and presented in forms of Tables.
The findings shows that most of the government department did not have enough funds which enable them to cover the cost of their daily activities since the funds received from the Treasury did not reflect to their budget, the actual funds received were not the one requested by different government units. Also the funds were not received on time which makes some of the necessity needs to take so long to be performed so under such situation there are some delay in provision of some services to the public.
The researcher recommends that, the Government should focuses on the recurrent expenditure that lead to provision of the services which had an impact on economic growth. Expenditure like Employee training, Purchase of medicine, and education. Apart from government expenditures prioritization, government expenditures should be considered not only by virtue of its economic returns but also technical, administrative and financial feasibility should be assured