DPG Tanzania

Budget Support in Tanzania

Press conference following the March 11th meeting.

The objective of Budget Support is to contribute to Tanzania's economic growth and poverty reduction by supporting the financing, implementation and monitoring of MKUKUTA II.

Budget Support is the preferred aid modality for development cooperation in Tanzania. It strengthens government ownership over development cooperation funds through using national systems and improving their capacity.

Budget Support also enhances coordination, alignment and coherence among Development Partners working in Tanzania. Finally, as the Tanzanian Parliament approves the national budget, it also strengthens the link between citizens and government in the use of development aid.

Budget Support in Tanzania 2014/2015 brochure describes Budget Support and its results in an easily understandable way. 

Current Events

Disbursement schedule for 2014/2015 (as of 23.4.2015)

The revised disbursement schedule for financial year 2014/2015 can now be accessed here

Joint Press Statement on Budget Support (March 11, 2015)

- The Government of Tanzania and the Budget Support Development Partners (BSDPs) had a successful dialogue meeting on the 11th March, 2015 with the view of resuming budget support arrangements before the end of the year 2014/15.

- The Government of Tanzania confirmed that it continued to handle the IPTL issue including ongoing processes and investigations in line with good governance principles. It should be noted that the IPTL issue is being dealt with in line with the laws of the United Republic of Tanzania and that the respective institutions should be given space to deal with this matter without any undue influence. BSDPs pledged willingness to collaborate with the Government in governance reforms and in strengthening the capacities of anti-corruption institutions.

- In the meeting BSDPs expressed appreciation on how Tanzania's accountability institutions addressed the issues arising from the IPTL saga, as reflected in the resolutions of the Parliament and the guidance by the President in speech on 22nd December 2014. In recognition of actions taken, Budget Support DPs are prepared to proceed with further disbursement of budget support.

- In March 2014, firm commitments were made for budget support in the financial year 2014/15 - worth USD 558 million, which represents approximately 5% of the national budget. Out of this amount, USD 86 million, approximate to 15% of Budget Support has been disbursed up to now. An additional immediate disbursement of approximately USD 44 million will now be made. Budget Support DPs are envisaging further disbursement decisions following their respective procedures; or in case of multilaterals institutions preparing proposals to their respective Board of Directors.

- The Government appreciates Budget Support DPs decision to disburse the remaining funds in line with the Partnership Framework Memorandum to allow meaningful implementation of planned activities for the year 2014/15. It was agreed to meet and discuss further on how to continue and reform the Budget Support instrument.

- Development Partners who are currently engaged in Budget Support are Canada, Denmark, Finland, Germany, Ireland, Japan, Sweden, UK, African Development Bank, European Union, and World Bank. The group is currently chaired by the Embassy of Finland.

 

Information on Budget Support Disbursements for Financial Year 2014-15  (as of January 8, 2015)

- Budget Support Development Partners (DPs) in Tanzania take the IPTL case with the utmost seriousness and are carefully monitoring its development as the case involves large amounts of public funds.

- In March 2014, firm commitments for budget support in the financial year 2014/15 - worth USD 558 million - were communicated to the Government with the caveat that disbursements would be informed by developments in relation to the IPTL case. DPs contribution to budget finances is approximately 5% of the national public expenditure programme.

- DPs were encouraged by the submission of the CAG and PCCB reports to the Parliament and its Public Accounts Committee (PAC), the tabling of the PAC report to the Bunge, the ensuing debate and the resolutions passed by the Parliament. DPs trust that Tanzania's accountability systems will handle the case thoroughly and are looking forward to a solid response to the findings from the government.

- DPs welcome the President's statement on the 22nd of December, 2014, acknowledging the resolutions approved by Parliament and confirming some action and further investigations. While still assessing the situation, DPs maintain dialogue with the Ministry of Finance and any decisions on further disbursements will be communicated to the Minister.

- So far, USD 84 million, or approximately 15% of the committed Budget Support funds for 2014/15 have been disbursed. Out of this amount, USD 69 million was disbursed in July. In recognition of the progress made as a result of the work by CAG, PAC and the Bunge, a disbursement of further USD 15 million was done in December. Decisions on remaining disbursements will be informed by further discussions with and actions by the Government of Tanzania.

- The Budget Support Chair, Embassy of Finland, is in constant dialogue with the Ministry of Finance at highest level.

- Development Partners who currently give Budget Support are Canada, Denmark, Finland, Germany, Ireland, Japan, Sweden, UK, African Development Bank, European Commission, and World Bank.  

Budget Support Donors commit USD 559 Million for FY 2014/15

Budget Support levels have remained stable and predictable over the past years. Read more about the disbursement commitments and changes in the Budget Support group here

Annual Review of Budget Support 

The Annual Review is the most important event in the Budget Support year. The 2013 Annual Review was held on the 18th of November 2013.

Read the Joint Press Statement by Government and Development Partners on the outcomes of the Annual Review. More info and pictures here.

Contact person for GBS:

Paulina Mrosso, Budget Support Secretariat: 

paulina.mrosso(at)prbstanzania.org;  mob: +255 715 002 003