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Public expenditure review for Tanzania prepared by the World Bank

Public expenditure review for Tanzania prepared by the World Bank

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Published by Uwazi
Since 1998, public expenditure reviews in Tanzania have been conducted on an
annual basis, closely aligned with Government’s budget cycle and carried out under the
direction of the Public Expenditure review (PER) working group, chaired by the Ministry
of Finance (MoF) and including in its membership a wide range of stakeholders from
Government, development partners and Tanzanian civil society. This approach has been
consistent with the series of initiatives in Tanzania aiming at developing an open process
of formulation of policy and budget strategy.
Since 1998, public expenditure reviews in Tanzania have been conducted on an
annual basis, closely aligned with Government’s budget cycle and carried out under the
direction of the Public Expenditure review (PER) working group, chaired by the Ministry
of Finance (MoF) and including in its membership a wide range of stakeholders from
Government, development partners and Tanzanian civil society. This approach has been
consistent with the series of initiatives in Tanzania aiming at developing an open process
of formulation of policy and budget strategy.

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Published by: Uwazi on Mar 26, 2010
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07/10/2013

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PUBLIC EXPENDITURE REVIEW FY04
Report on Fiscal Developments and Budget Management IssuesFY03-FY04June 14, 2004
 
TABLE OF CONTENTSBOXES..............................................................................................................................ivFIGURES......................................................................................................iv..........................................................................................................................................viIntroduction.........................................................................................................................i1. Overall Fiscal Performance.......................................................................................1Aggregate Fiscal Discipline...........................................................................1Domestic Revenue.........................................................................................3Findings from the Investment Climate Survey on the Tax System ..............4Donor Assistance...........................................................................................6Government Expenditures.............................................................................61.2 Strategic Resource Allocation.................................................................................9Use of the Contingency under Vote 50........................................................141.3 Priority Sector Expenditures.................................................................................15Priority sector trends 1999/2000 – 2003/04.................................................15Actual expenditures on the priority sectors during the first half of FY04...172. Consistency in budget planning and execution.......................................................193. Strengthening budget process.................................................................................21Strengthening the Budget Guidelines..........................................................22Implications for other planning instruments ...............................................24Implications for donor consultations on the budget.....................................244. Strengthening a result-based approach in policy making and budgeting...............25Introduction..................................................................................................25Monitoring systems......................................................................................25Developing a Result-Based Tanzania PRS .................................................27Performance-compatible incentive structures..............................................295. Public Expenditure Management Issues at Local Government Level....................30Recurrent vis-vis Development Expenditure...............................................34Expenditure on Personal Emoluments and Other Charges at LG level.......36Emerging Issues from the preliminary analysis of actual LG expenditure .38ANNEX 1 ...............................................................................................................40Preliminary review of Sector PERs............................................................................40A.1 ENVIRONMENT................................................................................................40Review of environment policies and programs........................................................................................................................40Revenue from environmental resources........................................................................................................................41Environmental expenditure in Tanzania........................................................................................................................41Capacity building for environmental managementThe PER found that there is need for capacity building for the NationalEnvironmental Management Council (NEMC) as it will be charged with theresponsibility of implementing the Environmental Management Act of 2004.The current staffing pattern shows a high ratio of supporting staff to
 
technical staff. Additional staff may be needed for environmental and poverty monitoring at the district and ward levels, environmental law andinspection at the district and regional levels, project management andenvironmental sanitation, logistical planning and wildlife management. ....42Summary recommendations for improvement........................................................................................................................43A2 ROADS.................................................................................................................43Major findings of the 2003 PER and action taken and pending issuesThe major findings of the last PER, the actions taken on therecommendations and the pending issues are presented below:....................43 Road network in TanzaniaThe actual length of the road network in Tanzania is not known. Threesystems are being developed to capture the road condition under TRANROADS and LGAs. The first is the Road Maintenance ManagementSystem (RMMS), which will be fully operational by 2004, will give morerealistic information for budgeting and decision-making on the trunk andregional roads. The second is the District Road Maintenance ManagementSystem (DROMAS) being developed by the PO-RLAG which is acomprehensive data management application to assist engineers at thedistrict council and road fund management unit in managing district roadsmaintenance works. The third system is the RMMS for urban councilfunded by the IDA.........................................................................................44 Road sector revenue and expenditures...........................................................44Institutional reforms.....................................................................................45Cross cutting issues......................................................................................46A.3 AGRICULTURE.................................................................................................47Implementation of recommendations of the last PER ................................48Sector performance......................................................................................49Constraints to sectoral performance.............................................................50Service delivery...........................................................................................50Sector Budget performance..........................................................................51Policy interventions in agricultural sector...................................................53 Summary of major observations and recommendations of the PER.............55A.4 EDUCATION......................................................................................................56Developments since the last PER................................................................56Review of sector plans, strategies and performance....................................56Sector policies, performance indicators and PRS targets............................57Review of Education Budget and Expenditure............................................58Recurrent expenditure..................................................................................59Development expenditure............................................................................59PEDP expenditure analysis..........................................................................60

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