International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2023 | Volume: 7 | Issue: 6 | Page No.: 10-18 The Effect of Public Debt on Economic Growth in Tanzania Download PDF Wakara Ibrahimu Nyabakora Abstract: This paper examines the effect of public debt on the economic growth of Tanzania from 2009 to 2019. It is a quantitative design and descriptive study employing secondary data from the central bank of Tanzania's website, the IMF's website, and the AFDB's website. The study employs least squares methods in the E-Views 12 package to examine the relationship between variables. The results revealed that external debt and private consumption are significant and positively affect economic growth. However, domestic debt has a negative, insignificant effect on economic growth. This means that governments have to take on more external debt than domestic debt due to the fact that borrowing internally can disturb private consumption. This is due to the fact that private consumption has a positive impact on economic growth. When the government borrows internally, it demonetizes the economy, which can slow economic growth. For faster economic growth, borrowing externally and injecting funds into the nation's economy can stimulate growth. However, external debt should be used for development and productive projects.