DPG Tanzania

Predictability and Results

GBS is the preferred aid modality of the Government of Tanzania, in part due to the predictability it gives. As DPs give their Budget Support payment commitments during the budget planning process in the third quarter of the government's financial year, it eases planning and enables funds to be taken into account in the national budget.

To increase predictability, DPs have also committed to frontload their Budget Support payments – that is to disburse a large part of the funds within the first quarter of each financial year (July-September).

Results of Budget Support

In recent years, there has been an increased emphasis on showing that development cooperation leads to clear results. This is also the case for Budget Support. Since funds are channeled into the national budget to support the national development strategies, it is increasingly important to show that Budget Support funds are actually contributing to results in key areas of poverty reduction.

The evaluation of Budget Support in Tanzania for the years 2005/6-2011/12 shows that Budget Support contributed significantly to improvements in key social sectors such as education and health. Budget Support also helped strengthen Public Financial Management systems and improved public transparency.

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