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.
Details
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Document Date
2001/10/31
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Document Type
Public Expenditure Review
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Report Number
23812
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2010/07/01
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Disclosure Status
Disclosed
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Doc Name
Tanzania - Public expenditure review
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Keywords
Public expenditures; Public finance; Budget management; Fiscal management; Social sector; Public health; Infrastructure development; Roads & highways; Water supply & sanitation; Sectoral allocation; Public sector divestment; Deficit financing; Public spending; Local finance; Local government budgets; Donor finance; Contingency funds; Cash management; Cash flow; Payments arrears; Debt financing; Reform policy; Financial management
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Citation
Tanzania - Public expenditure review (English). Public expenditure review (PER) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/652621468175141871/Tanzania-Public-expenditure-review