Government Expenditure: Tanzania

Analysis# Tanzania Government Expenditure Tanzania's government expenditure reached 20.485% of GDP in 2026, matching its all-time peak and marking a substantial increase from the 16.35% low recorded in 2017. Over the 22-year period from 2004 to 2026, expenditure climbed 20.3%, reflecting a long-term shift toward greater public sector spending relative to economic output. A sharp acceleration occurred between 2017 and 2026, with expenditure rising nearly 4.1 percentage points in just nine years. The steepest increases came after 2020, climbing from 17.441% in 2020 to the current peak. Year-over-year growth remained consistent from 2021 onward, suggesting Tanzania has entered a phase of sustained higher government spending that shows no signs of reversal in the near term.