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Tanzania - Fiscal aspects of decentralization (Inglês)

Since the Arusha Declaration of 1967, Tanzania has set before itself the goals of socialism and self-reliance. In achieving the goals, the government has recently emphasized an urgent need for the development of the rural sector where the bulk of the country's population lives. The present report begins with a description of the financial as well as administrative and planning arrangements for decentralization which have evolved since May 1972. It then attempts to evaluate the achievements of decentralization in terms of the objectives: (i) democratization of the decision-making process and its impact on sectoral allocations of government resources; (ii) financial autonomy and discretion given to the regions and districts and its impact on self-help contributions for and local participation in development; and (iii) decentralized planning and its impact on the achievement of inter-regional equity in public services. The report also indicates certain problems with the working of the financial control mechanisms and highlights the possibility of expenditure explosion following decentralization. Finally, the report concludes with hypotheses regarding the impact of decentralization which should be tested as more data become available.

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