The government has said the timely release of funds for development projects has significantly helped to increase money circulation in the economy.
The government has said the increase of broad money in an economy fuels economic activities, thus propelling growth in various sectors.
According to Bank of Tanzania (BoT) February's Monthly Economic Review (MER), the broad money supply grew at an annual rate of 14.9 per cent during the year ending this January.
The Ministry of Finance and Planning Permanent Secretary, Mr Emmanuel Tutuba said on Monday that the broad money supply improved significantly during the past few months, thanks to enhanced disbursement of development funds.
“The growth in broad money supply shows that there is timely disbursement of funds from domestic and foreign sources that went to implement development activities and was well on our projections,” Mr Tutuba told editors here at a seminar organised by the finance ministry.
The PS said in recent days, not a single development project had stalled due to lack of funds from the ministry.
In economics, broad money is a measure of the amount of money, or money supply, in a national economy, including both highly liquid "narrow money" and less liquid forms and other assets that are easily converted into currency, including large time deposits.
The BoT report showed that the 14.9 per cent growth rate of January was more than two-fold of the outturn in the corresponding period last year.
Mr Tutuba said so far, the government has disbursed 8.4tri/- in development financing up to February this year, signifying that the government was on the right track to fully implementing its 13tri/- development budget for 2021/22.
The smooth execution of the budget explains the fact that both local and foreign revenue sources were doing well.
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