This paper explores the relationship between the reduction in income-poverty and government
expenditure on growth strategies that have been implemented in Tanzania since the mid 2000s.
The paper shows that despite impressive economic growth of about 6 percent per annum that the
country has enjoyed in the course of implementing growth strategies over the past few years,
poverty has declined marginally and remains pervasive in the rural sector. This paper argues that
growth strategies in Tanzania have not helped to reduce income poverty significantly because
government expenditures to finance such strategies have been allocated to investment in social
services which reduce income poverty indirectly and as such, effects take time to be realized.
This paper argues that rural income diversification coupled with substantial investment in
agricultural sector remain paramount as a panacea to reducing income poverty; and improvement
in the quality of life and social wellbeing