INTRODUCTION
Tanzania Budget Processing
Government budget is a financial plan that outline a government’s expected
revenues and purposed expenditure for a specific period,usually a fiscal year.The
government icome (revenue) get from domestic revenue like tax,and foreign aidlike
World bank and IMF(loans).
The government budget is a very important tool used by the government to
plan how it will collect and spend money. In Tanzania, the budget processing is a
yearly cycle that start in 1 July 2007 ,that involves planning, discussion, approval, and
implementation. Tanzania uses fiscal year budget (July 1 to June 30) that combine
recurrent and development expenditures,with a focus on deficit financing and
strategic sectoral allocation.
Tanzania budget processing conducted under the laws provided in
constitution,the finance Act,2001(as amended),the local government finance
Act,1982(as edited) and other taxation statutes. The laws provides the roles and
responsibility for various key actors in the budget process,incuding the president and
cabinet ,the ministry of finance,the Tanzania revenue authority,the controller and
auditor general and parliament.
MAIN BODY
The process helps the country to manage its resources wisely and provide services to
its citizens.so the following are the stage used in government budget processing like
Tanzania.
Planning Stage:The budget process in Tanzania begins with planning. This
usually starts around October each year. The Ministry of Finance and Planning sends
a (Budget Call Circular)to all government ministries, departments, and agencies. This
circular gives instructions on how to prepare their budget proposals for the coming
financial year.
Each ministry and agency prepares its budget based on national priorities such as
education, health, agriculture, or infrastructure. They look at how much money they
need and what they plan to achieve.Example:The Ministry of Education may ask for
more money to build new classrooms or hire more teachers in rural areas.
Preparation Stage:After receiving proposals from different ministries and
agencies, the Ministry of Finance works on combining them into a single national
budget. During this time, consultations are held with different stakeholders, including
private sector representatives, civil society, and development partners (donors).
The budget must align with national plans like the (Five-Year Development Plan) or
(Vision 2025). It also considers how much money the government expects to collect
through taxes and other sources like foreign aid.Example:If the Tanzania Revenue
Authority (TRA) expects to collect TZS 30 trillion, the budget must not plan to spend
more than that unless there are loans or grants.
Approval Stage:In June, the Minister of Finance presents the national budget to
Parliament. This is known as the Budget Speech. Members of Parliament (MPs)
debate the budget, ask questions, and suggest changes. After discussions, Parliament
votes to approve the budget.Sometimes, certain parts of the budget may be adjusted if
MPs raise serious concerns.Example:In 2022, MPs pushed for more funding to
improve water supply in villages, and changes were made before the final approval.
Implementation Stage:After approval, the budget is implemented starting from
July 1st. Each ministry receives its funds and begins spending according to the
approved budget. The Ministry of Finance monitors spending to make sure money is
used correctly and not wasted.Example:If the Ministry of Health received money to
buy hospital equipment, they must follow government procedures and report how the
money was spent.
Monitoring and Evaluation:At the end of the year, the government checks if the
budget goals were achieved. The Controller and Auditor General (CAG) prepares an
audit report that shows how the money was used and whether there was any misuse.
This report is shared with Parliament and the public. If there is misuse of funds,
actions may be taken.Example:In past years, the CAG has reported misuse of funds in
some districts, leading to investigations and even suspensions of some officials.
CONCLUSION
In summary, the budget process in Tanzania includes five main stages: planning,
preparation, approval, implementation, and monitoring. It is a transparent and
participatory process that helps the government use public funds effectively.
Understanding this process helps citizens to hold leaders accountable and ensure
money is used to improve the lives of all Tanzanians.
