United Republic of Tanzania Public Expenditure Review FY03 : Managing Public Expenditures for Poverty Reduction - Report on Fiscal Developments and Public Expenditure Management Issues
In line with the Poverty Reduction Strategy (PRS) context, this external evaluation looks at budgetary developments, primarily through the lens of the PRS, thus with important implications for the Public Expenditure Review (PER) process, which has...
| Main Author: | |
|---|---|
| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/06/2683898/tanzania-public-expenditure-review-fy03-managing-public-expenditures-poverty-reduction-report-fiscal-developments-public-expenditure-management-issues http://hdl.handle.net/10986/14647 |
| Summary: | In line with the Poverty Reduction
Strategy (PRS) context, this external evaluation looks at
budgetary developments, primarily through the lens of the
PRS, thus with important implications for the Public
Expenditure Review (PER) process, which has evolved into the
principal analytic instrument to support the translation of
PRS objectives and strategies, into budgets. Overall fiscal
policy remained very conservative in FY02, and FY03.
Tanzania continues to use a cash budget system that strictly
constrains spending, and commitment levels to short term
availability of cash. While the system was clearly useful,
improvements in budget and aid management put the continued
use of a cash budget system into question; thus it is
advisable to revisit options for relaxing the stringency of
the cash budget. Nevertheless, the revenue to gross domestic
product (GDP) ratio, fell marginally to 12.1 percent in
FY02, but is projected to reach 12.5 percent in FY03,
therefore, with respect to new tax policy measures, it will
be important to pay attention to the impact of such measures
on poverty and growth. However, given that foreign
assistance increased in FY02 to 5.9 percent of GDP, and is
projected to increase to 7.9 percent in FY03, there is the
need to pursue policies that would support Tanzania's
international competitiveness, and minimize the potential
"Dutch disease" effects of aid. Upon review of the
micro-aspects of development assistance, it would be useful
to improve the scope of the information, and in turn, the
Ministry of Finance ( MoF) should routinely obtain this
information, so as to incorporate/synchronize it with
current aid flow data bases. Further recommendations address
functional allocation of resources and distribution,
requirements concerning auditing, and reporting standards,
and, the inclusion of participatory monitoring and
evaluation, as an important feedback mechanism into the PER process. |
|---|