Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management
Zanzibar finds itself currently in an extremely precarious fiscal situation, caused by the dramatic decline in government revenue during the past four years. The decline is primarily the result of the harmonization of tax policy, and administration...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/06/2874645/tanzania-zanzibar-public-expenditure-review-2003-laying-foundations-improved-public-expenditure-management http://hdl.handle.net/10986/14675 |
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okr-10986-14675 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
PUBLIC EXPENDITURES PUBLIC FINANCE REVENUE VOLATILITY FISCAL CONSTRAINTS TAX POLICY ADMINISTRATIVE CAPABILITY BUDGET CONTROL STRUCTURAL ADJUSTMENT NON-WAGE PAYMENTS TAXATION DEVELOPMENT FINANCE WAGES RECURRENT COSTS PUBLIC SECTOR MANAGEMENT GOVERNANCE APPROACH PUBLIC ACCOUNTING STATE TRADING CLOVES MONOPOLIES AGRICULTURAL PRODUCTIVITY TRADE LIBERALIZATION IMPORT POLICY REFORM POLICY AUTHORITY BANKING SECTOR BORROWING BUDGET MANAGEMENT BUDGET PROCESS CENTRAL GOVERNMENT CIVIL SERVICE CIVIL SOCIETY CONSTITUTION COUNCILS CURRENT PRICES DEBT SERVICING DONOR ASSISTANCE ECONOMIC ACTIVITY ECONOMIC MANAGEMENT ECONOMIC STRUCTURE ELECTRICITY EVASION EXPENDITURE ANALYSIS EXTERNAL SHOCKS FINANCIAL ACCOUNTABILITY FISCAL FISCAL DEFICITS FISCAL INCENTIVES FISCAL POLICY FISCAL SITUATION FISCAL YEAR FOREIGN BORROWING FOREIGN INVESTMENT GOVERNMENT EXPENDITURES GOVERNMENT INSTITUTIONS GOVERNMENT REVENUE GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT IMPORTS INCOME INFLATION INFORMAL SECTOR INVESTMENT CLIMATE LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANUFACTURING SECTOR MINISTRY OF FINANCE NATIONAL BUDGET NATIONAL PLANNING NATIONS NUISANCE TAXES PARASTATAL SECTOR PARASTATALS PENSIONS POLICY MAKING POLITICAL PARTIES POVERTY REDUCTION PRIVATE SECTOR PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REFORM PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES RATIONALIZATION REAL ECONOMIC GROWTH RECURRENT EXPENDITURES RESOURCE USE REVENUE COLLECTION REVENUE SHARING ROADS SHORT TERM SOCIAL DEVELOPMENT TAX TAX ADMINISTRATION TAX BURDEN TAX RATES TAX REGIME TAX SYSTEM TAXATION TOTAL EXPENDITURES UTILITIES WAGES |
| spellingShingle |
PUBLIC EXPENDITURES PUBLIC FINANCE REVENUE VOLATILITY FISCAL CONSTRAINTS TAX POLICY ADMINISTRATIVE CAPABILITY BUDGET CONTROL STRUCTURAL ADJUSTMENT NON-WAGE PAYMENTS TAXATION DEVELOPMENT FINANCE WAGES RECURRENT COSTS PUBLIC SECTOR MANAGEMENT GOVERNANCE APPROACH PUBLIC ACCOUNTING STATE TRADING CLOVES MONOPOLIES AGRICULTURAL PRODUCTIVITY TRADE LIBERALIZATION IMPORT POLICY REFORM POLICY AUTHORITY BANKING SECTOR BORROWING BUDGET MANAGEMENT BUDGET PROCESS CENTRAL GOVERNMENT CIVIL SERVICE CIVIL SOCIETY CONSTITUTION COUNCILS CURRENT PRICES DEBT SERVICING DONOR ASSISTANCE ECONOMIC ACTIVITY ECONOMIC MANAGEMENT ECONOMIC STRUCTURE ELECTRICITY EVASION EXPENDITURE ANALYSIS EXTERNAL SHOCKS FINANCIAL ACCOUNTABILITY FISCAL FISCAL DEFICITS FISCAL INCENTIVES FISCAL POLICY FISCAL SITUATION FISCAL YEAR FOREIGN BORROWING FOREIGN INVESTMENT GOVERNMENT EXPENDITURES GOVERNMENT INSTITUTIONS GOVERNMENT REVENUE GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT IMPORTS INCOME INFLATION INFORMAL SECTOR INVESTMENT CLIMATE LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANUFACTURING SECTOR MINISTRY OF FINANCE NATIONAL BUDGET NATIONAL PLANNING NATIONS NUISANCE TAXES PARASTATAL SECTOR PARASTATALS PENSIONS POLICY MAKING POLITICAL PARTIES POVERTY REDUCTION PRIVATE SECTOR PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REFORM PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES RATIONALIZATION REAL ECONOMIC GROWTH RECURRENT EXPENDITURES RESOURCE USE REVENUE COLLECTION REVENUE SHARING ROADS SHORT TERM SOCIAL DEVELOPMENT TAX TAX ADMINISTRATION TAX BURDEN TAX RATES TAX REGIME TAX SYSTEM TAXATION TOTAL EXPENDITURES UTILITIES WAGES World Bank Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| geographic_facet |
Africa Tanzania |
| relation |
Public expenditure review (PER); |
| description |
Zanzibar finds itself currently in an
extremely precarious fiscal situation, caused by the
dramatic decline in government revenue during the past four
years. The decline is primarily the result of the
harmonization of tax policy, and administration between
Tanzania Mainland and Zanzibar, and as such, is likely to be
permanent. Increasing revenue will require significant
improvements in tax policy and administration, and is likely
to be a slow process. In the short to medium term, the key
challenge for Zanzibar is to adjust budgets, and the level
and structure of public expenditures, to the new reality of
a considerably smaller resource envelope. To date, the
burden of adjustment has fallen exclusively on development,
and non-wage expenditures, which have been cut in line with
the fall in resources. This has led to a severe structural
imbalance in Zanzibar's public expenditures, with
expenditures on wages and salaries claiming 62 percent of
recurrent expenditures. This structural imbalance between
wage and non-wage expenditures, has direct implications for
Government's capacity to deliver services, as staff
often lack the means to carry out their functions. In
addition to fiscal and public expenditure issues, this
public expenditure review also assesses the role of the
wider public sector in the Zanzibar economy. Here the most
urgent need for reform concerns the role of the Zanzibar
State Trading Corporation, which currently enjoys a monopoly
on the export of cloves, Zanzibar's main agricultural
product. Removing the monopoly and liberalizing the clove
sector, is likely to have significant positive welfare
implications for clove farmers and the Zanzibar economy.
Main reasons for the high variability of revenue, include
the fact that Zanzibar collects most of its revenue from
indirect taxes, which reflect instability in the performance
of imports, and production of cloves. Possible options to
reduce this variability include (i) diversification of the
tax system to reduce dependence on taxation of trade, and,
(ii) reform of the indirect tax regime to have more
predictable rates, and a standard valuation of imports. |
| format |
Economic & Sector Work :: Public Expenditure Review |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| title_short |
Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| title_full |
Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| title_fullStr |
Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| title_full_unstemmed |
Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management |
| title_sort |
zanzibar public expenditure review 2003 : laying the foundations for improved public expenditure management |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/06/2874645/tanzania-zanzibar-public-expenditure-review-2003-laying-foundations-improved-public-expenditure-management http://hdl.handle.net/10986/14675 |
| _version_ |
1764428386064662528 |
| spelling |
okr-10986-146752021-04-23T14:03:17Z Zanzibar Public Expenditure Review 2003 : Laying the Foundations for Improved Public Expenditure Management World Bank PUBLIC EXPENDITURES PUBLIC FINANCE REVENUE VOLATILITY FISCAL CONSTRAINTS TAX POLICY ADMINISTRATIVE CAPABILITY BUDGET CONTROL STRUCTURAL ADJUSTMENT NON-WAGE PAYMENTS TAXATION DEVELOPMENT FINANCE WAGES RECURRENT COSTS PUBLIC SECTOR MANAGEMENT GOVERNANCE APPROACH PUBLIC ACCOUNTING STATE TRADING CLOVES MONOPOLIES AGRICULTURAL PRODUCTIVITY TRADE LIBERALIZATION IMPORT POLICY REFORM POLICY AUTHORITY BANKING SECTOR BORROWING BUDGET MANAGEMENT BUDGET PROCESS CENTRAL GOVERNMENT CIVIL SERVICE CIVIL SOCIETY CONSTITUTION COUNCILS CURRENT PRICES DEBT SERVICING DONOR ASSISTANCE ECONOMIC ACTIVITY ECONOMIC MANAGEMENT ECONOMIC STRUCTURE ELECTRICITY EVASION EXPENDITURE ANALYSIS EXTERNAL SHOCKS FINANCIAL ACCOUNTABILITY FISCAL FISCAL DEFICITS FISCAL INCENTIVES FISCAL POLICY FISCAL SITUATION FISCAL YEAR FOREIGN BORROWING FOREIGN INVESTMENT GOVERNMENT EXPENDITURES GOVERNMENT INSTITUTIONS GOVERNMENT REVENUE GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT IMPORTS INCOME INFLATION INFORMAL SECTOR INVESTMENT CLIMATE LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC STABILITY MANUFACTURING SECTOR MINISTRY OF FINANCE NATIONAL BUDGET NATIONAL PLANNING NATIONS NUISANCE TAXES PARASTATAL SECTOR PARASTATALS PENSIONS POLICY MAKING POLITICAL PARTIES POVERTY REDUCTION PRIVATE SECTOR PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REFORM PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES RATIONALIZATION REAL ECONOMIC GROWTH RECURRENT EXPENDITURES RESOURCE USE REVENUE COLLECTION REVENUE SHARING ROADS SHORT TERM SOCIAL DEVELOPMENT TAX TAX ADMINISTRATION TAX BURDEN TAX RATES TAX REGIME TAX SYSTEM TAXATION TOTAL EXPENDITURES UTILITIES WAGES Zanzibar finds itself currently in an extremely precarious fiscal situation, caused by the dramatic decline in government revenue during the past four years. The decline is primarily the result of the harmonization of tax policy, and administration between Tanzania Mainland and Zanzibar, and as such, is likely to be permanent. Increasing revenue will require significant improvements in tax policy and administration, and is likely to be a slow process. In the short to medium term, the key challenge for Zanzibar is to adjust budgets, and the level and structure of public expenditures, to the new reality of a considerably smaller resource envelope. To date, the burden of adjustment has fallen exclusively on development, and non-wage expenditures, which have been cut in line with the fall in resources. This has led to a severe structural imbalance in Zanzibar's public expenditures, with expenditures on wages and salaries claiming 62 percent of recurrent expenditures. This structural imbalance between wage and non-wage expenditures, has direct implications for Government's capacity to deliver services, as staff often lack the means to carry out their functions. In addition to fiscal and public expenditure issues, this public expenditure review also assesses the role of the wider public sector in the Zanzibar economy. Here the most urgent need for reform concerns the role of the Zanzibar State Trading Corporation, which currently enjoys a monopoly on the export of cloves, Zanzibar's main agricultural product. Removing the monopoly and liberalizing the clove sector, is likely to have significant positive welfare implications for clove farmers and the Zanzibar economy. Main reasons for the high variability of revenue, include the fact that Zanzibar collects most of its revenue from indirect taxes, which reflect instability in the performance of imports, and production of cloves. Possible options to reduce this variability include (i) diversification of the tax system to reduce dependence on taxation of trade, and, (ii) reform of the indirect tax regime to have more predictable rates, and a standard valuation of imports. 2013-07-30T21:44:18Z 2013-07-30T21:44:18Z 2003-06 http://documents.worldbank.org/curated/en/2003/06/2874645/tanzania-zanzibar-public-expenditure-review-2003-laying-foundations-improved-public-expenditure-management http://hdl.handle.net/10986/14675 English en_US Public expenditure review (PER); CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Public Expenditure Review Economic & Sector Work Africa Tanzania |