Dar es Salaam. The Controller and Auditor General (CAG) Mr Charles Kichere has confirmed that Tanzania’s public debt remains sustainable, despite a significant rise in the country’s financial obligations.
Speaking on March 27 while handing audit reports to President Samia Suluhu Hassan Mr Kichere said by June 30, 2024, the government’s debt had reached Sh97.35 trillion, up from Sh82.25 trillion in the fiscal year 2022/23.
This marks an increase of Sh15.1 trillion, which is equivalent to 18.36 percent.
The national debt comprises both domestic and external debt, with domestic debt standing at Sh31.95 trillion and external debt at Sh65.40 trillion.
However, despite the increase in debt levels, the CAG’s evaluation shows that the national debt remains within manageable limits.
“Key indicators show that the value of external debt accounts for 23.6 percent of the nation’s Gross Domestic Product (GDP), well below the international threshold of 40 percent,” Mr Kichere said.
Mr Kichere added that the total debt constitutes 41.1 percent of the GDP, which is also below the recommended limit of 55 percent.
In terms of debt servicing, the report highlights that debt payments in relation to export revenue stand at 127.5 percent, well under the global limit of 180 percent.
Similarly, debt payments as a percentage of government revenue are at 14.5 percent, below the acceptable threshold of 18 percent.
Mr Kichere further added that Tanzania’s debt levels, although rising, are still within the boundaries that ensure the country’s financial stability.
