Mwankemwa, Suma P.2022-12-282022-12-282022-06-302591-6815https://repository.tia.ac.tz/handle/123456789/118This paper examines the fscal dominance hypothesis in Tanzania by exploring the relationship between the monetary base and the government debt using monthly data from 2003:1 to 2019:12. Results from formal statistical tests indicate no evidence of a long-run relationship between the variables. Structural vector autoregressive model is thus estimated to analyse the short-run dynamics. The fndings point to a positive and statistically signifcant impact of government debt on monetary base. The fndings identifes political phenomenon that before the fourth phase government (2003-2005), monetary policy witnessed relatively intensive fscal dominance as compared to the fourth phase (2005- 2015) and ffth phase government (2015-2019). However, in comparison with the fourth phase government, fndings suggest that during the frst four years of the ffth phase government, monetary policy encountered a relatively high fscal influence, partly attributed to implementation of huge development projects and reduction in foreign fnancing in the government budget. The identifed fscal dominance for the sample period, implies a subordinated monetary policy, compromising on Bank of Tanzania’s primary objective of price stability.enFiscal dominance; SVAR; Monetary policy; TanzaniaArticle