Public spending in Tanzania affects economic growth differently depending on how it is financed. Using a special statistical method, researchers found that public spending funded by taxes and non-tax revenue helps the economy grow. However, high tax rates might limit the benefits of tax-funded spending. Borrowing money from outside the country also boosts growth, but borrowing internally or receiving grants can slow down the economy. To improve growth, Tanzania should collect more taxes, reduce tax evasion, and find new sources of non-tax revenue. When facing a budget shortfall, it's better to borrow money from commercial sources outside the country rather than internally or through grants.