In most sub-Saharan African countries there has been stagnant agricultural productivity and a subsequent slow pace of rural poverty reduction. Given that one of the main reasons for low agricultural productivity is low input use, most sub-Saharan countries introduced input subsidies to increase the yield and eventually contribute to the national economy. Using an empirical literature review and case studies, this study aimed to examine the economic implications of input subsidy uses among small-scale farmers in Tanzania over a period of time. The study found that Tanzania has made an immense effort to improve agricultural productivity over time, yet results are not apparent, given the investments that the government has made in the sector. Therefore the use of input subsidies to contribute to the GDP and its overall goal to increase productivity has not yet been significantly achieved. The study recommends that subsidies may only be