Tanzania’s national debt has reached TSh69.44 trillion from TSh60.72 trillion in 2021, after the country borrowed TSh8.7 trillion in past year which is equivalent to 14.4% increase.
Tanzania’s minister of finance and planning, Mwigulu Nchemba says the increase in national debt was due to receiving of soft loans for financing development projects.
Further, the debt also increased because of the release of special bonds worth TSh2.18 trillion for the funding of the Public Service Social Security Fund (PSSSF) debt derived from staff contributions before 1999.
However, he said that while the debt increased the evaluation report held in November 2021 shows the debt was still sustainable in the short, medium and long term based on the international measures.
On the other hand, Zanzibar’s national debt now stands at TSh1.2 trillion as of March 2022.