Publication: United Republic of Tanzania - Public Expenditure Review 2010
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2011-09-01
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2012-03-19
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The main objective of the budget analysis chapter is to provide an overall assessment of how well the approved budget allocations in 2010-11 align with the strategic objectives and with sector strategic priorities of the Second National Strategy for Growth and Reduction of Poverty (known by its Kiswahili acronym, MKUKUTA II). It also assesses the consistency of the actual spending and approved budget in 2009-10. In evaluating the alignment of the budget and MKUKUTA's strategic objectives and sector strategic priorities, the analysis gauges the accuracy and reliability of the macro and budget framework, share of the budget allocated to MKUKUTA cluster strategies, share of the budget allocated to capital investment, and strategic prioritization within key sectors. This budget analysis chapter summarizes nine background notes that covered six key sectors and three thematic areas. The six key sectors are education, health, water, roads, energy, and agriculture; the three thematic areas are the wage bill, local government, and aggregate analysis. The six sectors were selected because they consume approximately 60 percent of the overall budget and are keys to achieving the MKUKUTA strategic objectives of growth and reduction of poverty. The three thematic areas were selected because of their crosscutting nature, as they touch each key sector but also are critical for achieving the MKUKUTA strategic objectives.
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“World Bank. 2011. United Republic of Tanzania - Public Expenditure Review 2010. © World Bank. http://hdl.handle.net/10986/2789 License: CC BY 3.0 IGO.”
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Publication United Republic of Tanzania - Public Expenditure Review 2011(Washington, DC, 2012-07)The 2011 Public Expenditure Review (PER) is divided into two parts. The first describes recent developments in fiscal policy, with a particular focus on the adjustment announced in November 2011 as well as short and long term prospects. The second part assesses government performance in the health sector, which accounts for about 10 percent of the total budget. The objectives of the budget analysis chapter are to: 1) document fiscal and macro developments since November 2011, after the government made adjustments to the budget under the International Monetary Fund (IMF) Policy Support Instrument (PSI). Government reduced the fiscal deficit in the budget to approximately 6.6 percent of Gross Domestic Product (GDP) from approximately 8.0 percent of GDP in the initially approved budget for 2011/12. 2) Take stock of budget execution in 2010/11 and strategic budget allocation in 2011/12 in relation to Government strategic objectives of economic growth and poverty reduction as envisaged in MKUKUTA (Mpango wa Kukuza Uchumi na Kupunguza Umaskini Tanzania-Tanzania's National Strategy for Growth and Reduction of Poverty) and Five Year Development Plan (FYDP). 3) Highlight a number of priorities that Government needs to take into account in formulating its fiscal policy both in the short and longer terms. In 2011, the recurring domestic energy crisis negatively affected the level of private sector activities. 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This will require inter and intra-sectoral reallocation of expenditures and an increase in the efficiency of public spending rather than increasing the relative size of government.Publication The United Republic of Tanzania : Public Expenditure Review(Washington, DC, 2001-10)This public expenditure review (PER) examines the budget performance for FY00- and the first eight months of FY01, when domestic revenue remained at the same low level as in the previous year (1.15 percent of GDP), while expenditures increased in FY00 by one percentage point, i.e., 15.9 percent of GDP. Some progress has been made in enhancing funding for priority activities in the areas or primary education, health care, roads and water, with most of the increased spending being at the district level. Likewise, progress has been made in bringing a greater share of donor financed development spending into the budget. Nonetheless, deviations between the budget presented at the National Assembly, and expenditure outturns, remain significant, especially for non-priority sectors, and, contingency funds retained by the Ministry of Finance are substantial. It is highlighted that problems in public expenditure management persist, being the main one the mismatch between available resources, and the intended scope of Government activities. Under-funding of budgets undermines prudent budget management, thus recommendations suggest reviews by Government to ensure fully funded expenditures for FY02. Recommendations to ease the mismatch between monthly cash requirements, and exchequer releases, suggest the presentation of a cash flow plan to conform to aggregate ceilings, as an instrument to respect overall yearly budget ceilings, but separating contingency provisions to minimize unforeseen expenditures. Concerning payment arrears, a relief program is recommended to clear the debt stock of poor local authorities.
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