Increase in development spending boosts stability, while recurrent spending destabilizes economy.
The study looked at how government spending in Tanzania affects the country's economy. They found that spending more on development projects helps keep the economy stable. On the other hand, spending more on day-to-day expenses can make the economy less stable. Overall, increasing total government spending can also make the economy less stable. To keep the economy stable, the government should focus on investing in development projects rather than regular expenses.