i THE UNITED REPUBLIC OF TANZANIA GUIDELINES FOR THE PREPARATION OF MEDIUM TERM PLAN AND BUDGET FRAMEWORK FOR 2010/11 –2012/13 Part I & II Ministry of Finance and Economic Affairs, P. O. BOX 9111 DAR ES SALAAM. FEBRUARY, 2010
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i
THE UNITED REPUBLIC OF TANZANIA
GUIDELINES FOR THE PREPARATION OF MEDIUM TERM PLAN
AND BUDGET FRAMEWORK FOR 2010/11 –2012/13
Part I & II
Ministry of Finance and Economic Affairs, P. O. BOX 9111 DAR ES SALAAM. FEBRUARY, 2010
ii
TABLE OF CONTENTS
LIST OF TABLES ........................................................................................................................................ V
LIST OF ABBREVIATIONS .................................................................................................................... VI
PREAMBLE ............................................................................................................................................... IX
CHAPTER ONE ........................................................................................................................................... 1
REVIEW OF MACROECONOMIC DEVELOPMENT ........................................................................... 1
MACROECONOMIC PERFORMANCE ................................................................................................................. 1 Chart 1.1: Tanzania: Annual Headline, Food and Non-food Inflation ......................................... 5
REGIONAL INTEGRATION AND INTERNATIONAL COOPERATION ......................................................................19 IMPLEMENTATION OF THE RESCUE PACKAGE AGAINST THE GLOBAL ECONOMIC RECESSION ............................21
Development during the Crisis .........................................................................................................21 Government Response ......................................................................................................................22 Implementation status ......................................................................................................................22
CHAPTER TWO .........................................................................................................................................25
REVIEW OF THE PLAN AND MKUKUTA IMPLEMENTATION FOR 2008/09 .........................25
Cluster I: Growth and reduction of Income poverty ....................................................................26 Cluster II: Improved Quality of Life and Social Wellbeing ..........................................................41 Cluster III: Governance and Accountability ...................................................................................47
CROSS CUTTING ISSUES ..............................................................................................................................50
CHAPTER THREE ......................................................................................................................................61
SPECIFIC ISSUES FOR REGIONS AND LOCAL GOVERNMENT .................................................61
INTRODUCTION ...........................................................................................................................................61 CHALLENGES FACING REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT ...............................................64 PLANNING AND BUDGET PROCESS FOR LOCAL GOVERNMENT ........................................................................68 OVERALL BUDGETARY ISSUES AND GUIDANCE ..............................................................................................95
CHAPTER FOUR ........................................................................................................................................97
IMPLEMENTATION OF PUBLIC SECTOR REFORMS .....................................................................97
INTRODUCTION ...........................................................................................................................................97 BEST PROGRAMME ...................................................................................................................................102 REFORM CHALLENGES ...............................................................................................................................103
CHAPTER FIVE........................................................................................................................................107
THE PUBLIC ENTERPRISES ...............................................................................................................107
MANAGEMENT OF PUBLIC ENTERPRISES .....................................................................................................107 WAY FORWARD .........................................................................................................................................110
CHAPTER SIX ..........................................................................................................................................112
THE MEDIUM- TERM PUBLIC INVESTMENT PLAN ....................................................................112
TANZANIA DEVELOPMENT PATH TO REALIZATION OF VISION 2025 .............................................................112 THE RATIONALE FOR THE MPIP ................................................................................................................113 OBJECTIVES OF THE PLAN .........................................................................................................................114 STRATEGIC INTERVENTIONS FOR THE MEDIUM TERM .................................................................................115 MPIP IMPLEMENTATION FRAMEWORK .......................................................................................................120 FINANCING MPIP .....................................................................................................................................122
CHAPTER SEVEN ....................................................................................................................................124
iii
MEDIUM TERM OBJECTIVES AND FOCUS ....................................................................................124
MACROECONOMIC ASSUMPTIONS AND THE MEDIUM TERM OUTLOOK ..........................................................124 Macroeconomic Assumptions .........................................................................................................124 Sectoral Assumptions and Outlook ...............................................................................................125
MACROECONOMIC PROJECTIONS AND POLICY TARGETS ..............................................................................126 MEDIUM TERM PRIORITY AREAS .................................................................................................................129 PUBLIC SECTOR REFORMS .........................................................................................................................136 CROSS CUTTING ISSUES ............................................................................................................................139
CHAPTER EIGHT ....................................................................................................................................145
RESOURCE ENVELOPE AND EXPENDITURE FRAMEWORK .....................................................145
2010/11 – 2012/13 .............................................................................................................................145
REVENUE POLICIES AND INITIATIVES .........................................................................................................149
CHAPTER NINE ......................................................................................................................................151
PERFORMANCE MONITORING, EVALUATION AND REPORTING .........................................151
CHALLENGES .............................................................................................................................................152 THE WAY FORWARD .................................................................................................................................152 INSTRUCTIONS ON PERFORMANCE REPORTING ...........................................................................................153
CHAPTER TEN .........................................................................................................................................154
INSTITUTIONAL RESPONSIBILITIES ............................................................................................154
ROLES OF ACCOUNTING OFFICERS IN PLANNING, BUDGET PREPARATION AND EXECUTION ..........................154 EXPENDITURE CONTROL AND COST REDUCTION .........................................................................................156 GOVERNMENT PROCUREMENT SYSTEMS AND MANAGEMENT ........................................................................158 NATIONAL PRIORITIES FOR THE MEDIUM TERM .........................................................................................158 PREPARATION OF PERSONAL EMOLUMENT BUDGET .....................................................................................158 PREPARATION OF REVENUE ESTIMATES ......................................................................................................159 ACCUMULATION OF DEBTS AND STOCK OF ARREARS ....................................................................................160 IMPLEMENTATION OF INSTITUTIONAL PLANS AND BUDGETS: ......................................................................161
FORM FOR BUDGET SUBMISSION, EXECUTION AND PERFORMAMNCE REPORTING .164
INTRODUCTION ....................................................................................................................................164
BUDGET SUBMISSION FORMS ...........................................................................................................171
FORM 1: SUMMARY OF ANNUAL AND FORWARD BUDGET ESTIMATES REVENUE,
RECURRENT AND DEVELOPMENT.................................................................................................171 FORM 2: RECURRENT EXPENDITURE FORWARD BUDGET (SUMMARY OF PERSONAL
EMOLUMENTS AND OTHER CHARGES AT VOTE LEVEL) ........................................................172 FORM 3A (R): 3 YEAR MTEF TARGET VALUE FORM (RECURRENT EXPENDITURE) ............173 FORM 3A (D): 3 YEAR MTEF TARGET VALUE FORM (DEVELOPMENT EXPENDITURE) ......174 FORM 3B: ACTIVITY COSTING SHEET ...........................................................................................175 FORM 3C: RECURRENT EXPENDITURE SUMMARY OF DRAFT ESTIMATES ..........................176 FORM 4: DOMESTIC REVENUE FORWARD BUDGET ...................................................................177 FORM 5: DOMESTIC REVENUE.........................................................................................................178 FORM 6: DEVELOPMENT EXPENDITURE DETAILS OF ANNUAL AND FORWARD BUDGET
................................................................................................................................................................179 FORM 7B: INSTITUTIONAL RESULTS FRAMEWORK ...................................................................180 FORM 8A: SUMMARY OF PERSONAL EMOLUMENTS ESTIMATES AT VOTE LEVEL ...........181 FORM 8B: SUMMARY OF PERSONAL EMOLUMENTS ESTIMATES AT SUBVOTE LEVEL ....182 FORM 8C: ITEM 1 - SUMMARY OF EXISTING EMPLOYEES ON PAYROLL ..............................183 FORM 8D: ITEM II - SUMMARY OF EXISTING EMPLOYEES NOT ON PAYROLL .....................184 FORM 8E: ITEM III - SUMMARY OF NEW EMPLOYEES TO BE RECRUITED ............................185
iv
FORM. 8F: LIST OF EMPLOYEES TO BE DELETED FROM THE PAYROLL................................186 FORM 9: SCHEDULE OF PERSONAL EMOLUMENTS (ESTABLISHMENT AND STRENGTH) .187 FORM 10A: PROJECT PROFILE DATA FORM ..................................................................................188 FORM 10B: SUMMARY OF PROJECT FORWARD BUDGET ESTIMATES AT VOTE LEVEL (ALL
SOURCES) .............................................................................................................................................191
OPERATIONAL PLANNING FORMS ..................................................................................................192
FORM 11A (R): CURRENT YEAR MTEF TARGET VALUE FORM (RECURRENT EXPENDITURE)
................................................................................................................................................................192 FORM 11A (D) CURRENT YEAR MTEF TARGET VALUE FORM (DEVELOPMENT
EXPENDITURE) ...................................................................................................................................193 FORM 11B (R): ANNUAL CASH FLOW PLAN FOR RECURRENT BUDGET (FOR MDAS,
REGIONS & COUNCILS) .....................................................................................................................194 FORM 11B (D): ANNUAL CASH FLOW PLAN FOR DEVELOPMENT BUDGET (FOR MDAS,
REGIONS & COUNCILS) .....................................................................................................................195 FORM 14B (R): ANNUAL ACTION PLAN FOR RECURRENT BUDGET FOR THE FY ………. …..
................................................................................................................................................................196 FORM 14B (D): ANNUAL ACTION PLAN FOR THE DEVELOPMENT BUDGET FOR THE FY
………. …….. ........................................................................................................................................197
PERFORMANCE REPORTING FORMS .............................................................................................198
FORM 12A: CUMULATIVE QUARTERLY MTEF TARGET MONITORING FORM .......................198 FORM 12B: QUARTERLY CUMULATIVE MILESTONE (PRIORITY) MONITORING FORM .....199 FORM 12C: OUTCOME INDICATOR MONITORING FORM ...........................................................200 FORM 13A: QUARTERLY CUMULATIVE FINANCIAL OVERVIEW FORM ................................201 FORM 13B: QUARTERLY CUMULATIVE FINANCIAL DETAILED FORM ..................................202
INTERNAL FORMS.................................................................................................................................203
FORM 14A: SUMMARY OF THE STRATEGIC PLAN .......................................................................203
MTEF PRESENTATION FORMAT (FOR Y0 TO Y0+2) ....................................................................204
v
LIST OF TABLES Table 1.1: Selected interest rate applied by Banks – annual average Table 1.2: Summary of Rescue Package Implementation Status Table 5.1: Revenue Collection from Public Institutions Table 6.1: Real GDP Growth (2000 - 2008) Table 6.2: Formula for allocating reccurent block grants
Share to GDP Table 7.1: Budget Frame 2009/10 _ 2011/12 Table 7.2: Budget Frame as percent of GDP Table 7.3: Proposed Resource Allocation (OC and Development) Table 7.4: Summary of cluster goals Table 8.1: Medium term resources and expenditure framework for 2010/11 –
2012/13
vi
LIST OF ABBREVIATIONS ARV - Anti Retro Virals ASDP - Agricultural Sector Development Programme BEST - Business Environment Strengthening for Tanzania BOT - Bank of Tanzania BWM-SEZ - Benjamin William Mkapa Special Economic Zone CCM - Chama Cha Mapinduzi D by D - Decentralization by Devolution DADPs - District Agriculture Development Plans EU - European Union GDP GFC
- Gross Domestic Product Global Financial Crisis
HIPC - Highly Indebted Poor Countries ICT - Information and Communication Technology IFMS - Integrated Financial Management System LGA - Local Government Authorities LGCDG - Local Government Capital Development Grant LGRP - Local Government Reform Programme MDGs - Millennium Development Goals MACMOD - Macro-economic modeling MIS - Management Information System MFEA - Ministry of Finance and Economic Affairs MTEF - Medium Term Expenditure Framework MoEVT - Ministry of Education and Vocational Training MTP - Medium Term Plan NACSAP - National Anti-Corruption Strategy and Action Plan NGSDA - National Geographical Spatial Data Infrastructure NSGRP - National Strategy for Growth and Reduction of Poverty PADEP - Participatory Agriculture Development and Empowerment
Project PCCB - Prevention and Combating of Corruption Bureau PEDP - Primary Education Development Programme PER - Public Expenditure Review PFMRP - Public Financial Management Reform Programme PBG - Plan and Budget Guidelines PLWHAs - People Living with HIV and AIDS PHSDP PMO-RALG
- Primary Health Service Development Proramme Prime Minister‟s Office – Regional Administration & Local Government
PMCT - Prevention of Mother to Child Transmission PO-PSM - President‟s Office – Public Service Management PPP - Public – Private Partnership PSRP - Public Service Reform Programme R&D - Research and Development
vii
RS - Regional Secretariat SADC - South African Development Community SBAS - Strategic Budget Allocation System SEDP - Secondary Education Development Programme SEZ - Special Economic Zone SMES - Small and Medium Enterprises SUMATRA - Surface and Marine Transport Regulatory Authority TSCP - Tanzania Strategic Cities Project TASAF - Tanzania Social Action Fund TCRA - Tanzania Communication Regulatory Authority TDHS TDV2025
- Tanzania Demographic and Health Survey Tanzania Development Vision 2025
THIS - Tanzania HIV and AIDS Indicator Survey TRL - Tanzania Railways Limited TSIP Transport Sector Investment Program VAT - Value Added Tax
viii
ix
PREAMBLE The Government of the United Republic of Tanzania has endorsed the
Plan and Budget Guidelines for the medium term 2010/11 – 1012/13. The
guidelines are to be used by the MDAs, Regions and Local Government
Authorities in preparing well informed medium term plans and budgets for the
period 2010/11 – 2012/13 and the Annual Plan and Budget for 2010/11 and for
the outer years, 2011/12 and 2012/13.
The document is organized in ten chapters which are integrated and
synchronized in order to make them whole-some. Each chapter begins with a
review of what transpired during the past year and briefly points out
achievements registered in the course of implementation as well as challenges
being faced.
Chapter One raises the curtain by a careful treatment of issues of
macroeconomic relevance, including economic growth, inflation, the performance
of Tanzania and its trade partners in respect of international trade, domestic
revenue collection, to mention but the more important ones. The chapter
concludes by providing projections of main economic indicators which will serve
to guide public actions in the medium term.
A review of the plan and implementation of MKUKUTA for the year
2008/09 is undertaken in Chapter Two. The chapter introduces the National
Development Vision 2025 which was formulated in 2000 and its implementation
was planned to be through medium term plans (MTP). MKUKUTA is implemented
under three clusters. This chapter gives, therefore, an account of how the key
sectors in the three MKUKUTA clusters performed and points out in detail the key
achievements and the challenges that are being faced. The key sectors that have
been reviewed in Cluster I are Agriculture, Livestock, Fisheries, Manufacturing,
Minerals, Roads, Energy and Lands. Under Cluster II, the sectors reviewed are:
x
Education, Health and Water. Finally, under Cluster III, the following sectors are
reviewed: Governance and Accountability, HIV and AIDS, Gender, Environment,
Population and Development, Social Protection, Employment and Economic
Development, Export Processing Zones and Special Economic Zones, and
Business and Property Formalization Programme.
As it has been the practice in the past, a separate Chapter Three has been
devoted to the sub-national levels of administration – the Regions and Local
Government authorities. Regions due to the vital role they play in facilitation and
backstopping to the local government authorities to effectively implement
government policies and deliver public services. The proximity of these levels to
the citizens makes Regions and LGAs deserve a chapter so that issues that are
specific to them are put in focus, without which such worthy issues as
maintenance of peace, order, tranquility and good governance as well as
bringing about development at the local level would be difficult to achieve.
The governance reforms continue to impact on public service delivery at
all levels and in every sector. Thus, Chapter Four captures these reforms and
discusses developments within Public Service Reform Programme II, Local
Government Reform Programme II (D by D), Public Financial Management
Reform Programme III, Legal sector Reform Programme, the National Anti-
Corruption Strategy and Action Plan II and Second Generation of Financial Sector
Reform Programme. The chapter underscores complementing feature of the
reforms with a view to enhancing good governance and accountability.
The influence of public investments in the performance of the economy is
recognized in Chapter Five. In particular, the place of those investments in
propping up the economy and the pressures that they exert to the Government
budget are discussed. Specific instructions are given to the public corporations
xi
on what they are supposed to do in the medium term for them to continue to
deserve the status accorded to them.
The public investment plan for the medium term (MPIP) is explained in
Chapter six. In this chapter, investment priorities for faster economic growth in
line with the National Development Vision 2025 are put in proper perspective.
MPIP aims at improving transport and communication infrastructure, energy and
power supply, water harvesting for irrigation for the realization of Kilimo Kwanza
aspiration, industrial parks and commercial areas development and enabling
Tanzania to take full advantage of her geographical position in respect to her
neighbours.
The contents of chapter six provide an input for Chapter Seven which
spells out medium term objectives and focus, which enable resource allocation in
line with perceived priorities, a subject handled in Chapter Eight. The Chapter
also highlights milestones to be undertaken to ensure smooth carrying out the
forthcoming General Election slated for October 2010. Personal emoluments will
continue to be the first charge under the Recurrent Budget. Resources under
Development Budget are to be strategically directed, specifically to the growth
sectors so as to spur high economic growth in the medium term. Meanwhile,
allocation of resources to the social sectors will continue so as to sustain the
achievements obtained so far and improve the access and quality of the services
.
Chapter Nine provides a mechanism by which the Government will make a
follow-up on the execution of its budget with a view to ensuring value for
money. In this regard, the whole issue of performance monitoring, evaluation
and reporting is elaborated at length in the chapter. Finally, the concluding
Chapter Ten serves to remind the various institutions dealing with the
management of the budget about their roles and responsibilities.
1
CHAPTER ONE
REVIEW OF MACROECONOMIC DEVELOPMENT
Macroeconomic Performance
1. Economic growth has been stable, with GDP growth averaging 7.2 percent
between year 2002 and 2008. The strong growth performance is in response to
sound macroeconomic policies and reform efforts taken by the government over
the past two decades. Though agriculture has remained the dominant activity in
Tanzania, the economy has increasingly become diversified, embracing activities
such as manufacturing, trade and repairs, mining, construction, real estate and
business services, as well as transport and communication. Inflation, which had
remained at single digit for 10 years since 1998 crossed into the double digit
territory since September 2008. The increase was driven mainly by lagged
effects of the spike in international food and fuel prices.
2. With regard to fiscal operations, the government has over the time
managed to increase domestic resource mobilization efforts, while maintaining
expenditures within budget limits. Domestic revenue increased from 10.8 percent
of GDP in 2002/03 to 15.8 percent of GDP in 2008/09, while expenditure
increased from 17.6 percent of GDP to 25.3 percent of GDP over the same
period. During the period, the Government restrained from domestic bank
borrowing as a way of encouraging more financial resources to the private
sector, and also to reduce pressure on domestic prices. Meanwhile, the financial
sector remains solid, with credit to the private sector increasing from an average
of less than 6 percent of GDP in 2002 to an average of 19 percent of GDP in
2009. Gross official reserves have increased significantly as well, from around
USD 1.5 billion in November 2002 to USD 3.5 billion in November 2009,
equivalent to 5.7 months of imports.
2
A. Economic Growth
3. Despite the achievements that were registered over the past seven years,
economic growth in 2009 is likely to slow down on account of the global financial
crisis (GFC), and is estimated at 5.0 percent. However, according to the
November 2009 World Economic Report forecast, the global economy is healing
and emerging from recession, though the recovery is likely to be relatively slow.
The recovery is expected to be reflected into Tanzanian economy by 2010.
4. Indicators of Tanzania‟s economic activity during the year ending
December 2009 reflect that growth has been affected by the global financial
crisis albeit by a lesser extent when compared with advanced and middle income
economies. This has been evidenced by the recent upward trend of the value of
the traditional exports in the year ending December 2009. For instance, prices of
all traditional exports declined between 2008 and 2009, except tea and tobacco.
However, increase in export volumes compensated for the decline in prices. As a
result, the value of traditional exports went up by 12.5 percent to USD 470.8
million compared to the level recorded in 2008.
5. The price of gold (USD per troy trounce), which had increased by 25.12
percent during the year ending December 2008, slowed down to an increase of
11.59 percent during the year ending December 2009. However, due to increase
in gold export volumes, gold exports increased by 15.4 percent, from 932.4
million in the year ending December 2008 to USD 1,076.1 million in 2009.
6. The export value of horticultural products also increased to USD 32.2
million during the year ended December 2009 from USD 19.1 million recorded in
the corresponding period of 2008, equivalent to an increase of 33.7 percent.
3
7. In addition to the impact of the GFC, growth is likely to be affected by the
2008/09 drought which has affected agricultural production, hydro power
generation as well as industrial production; all of which have a significant share
to total GDP.
8. In 2009, the services economic activity is estimated to grow by 6.0
compared to 8.5 percent real growth recorded in 2008. The main casualties are:
communication; hotel and restaurants; and trade and repair sub-economic
activities mainly on account of the low FDI and tourism inflows following the
impact of the GFC. The number of tourist arrivals has fallen since November
2008. This will likely reduce earnings from tourism; hence decline in the growth
rate of hotel and restaurants sub-economic activity.
9. The growth rate of industry and construction economic activities is
estimated to slow down to 5.6 percent in 2009 from 8.6 percent in 2008 mainly
on the account of low performance in electricity and gas, manufacturing and
construction sub-activities. The manufacturing sub-activity is expected to grow
by 6.6 percent in 2009 compared to 9.9 percent in 2008 mainly on account of
decline in the demand for manufactured exports, owing to the impact of global
financial crisis as well as the effect of the power shedding which started in the
third quarter of 2009. The decline in construction sub-activities is due to slow
down in construction sub-activity in anticipation of the impact of the GFC.
10. Similarly, electricity and gas sub-activity is anticipated to grow at 3.0
percent in 2009 compared to 5.4 percent in 2008 due to drought in 2008/09, as
well as dilapidated and breakdown of power plants. As of October 2009, total
energy requirement was 769MW and the available plants have the capacity of
generating 964MW (installed capacity). However, the available plants could only
produce 538MW, which is equivalent to 70 percent of the annual requirement
and 55.8 percent of the installed capacity.
4
11. The growth in agricultural and livestock economic activities is
expected to slow down to 2.7 percent in 2009 compared to actual growth rate of
4.6 percent recorded in 2008 due to uncertainty in weather conditions (failure of
short rains and delays in long rains) and the current global financial crisis which
has partly affected the demand and prices of traditional exports. In 2009, there
was lower than anticipated crop production caused by erratic rains. Traditional
exports, especially cotton and coffee, were also affected partly on account of the
impact of the global financial crisis as the prices in the world market declined
during the period under review. As such, growth in this sub-activity is projected
to slow down from 5.1 percent in 2008 to 2.9 percent in 2009.
12. Fishing economic activities is expected to record 2.0 percentage point
decline in growth rate, from 5.0 percent in 2008 to 3.0 percent in 2009, owing to
continued use of poor fishing gears, destruction of fish hatcheries, and low
production to meet world market demand as well as increasing competition in
the European countries resulting from fish farming from Asian Countries (China
and Vietnam).
B. Inflation
13. In December 2009, inflation stood at 12.2 percent, and the annual
average for 2009 was 12.1 percent compared to an average of 10.3 percent in
2008. The relatively high inflation in 2009 is mainly explained by food inflation
associated with low food production due to erratic rains. The situation was
worsened by food shortages in the neighboring countries. However, since
October 2009, inflation has been easing down on account of a slowdown in the
increase in food prices. Food inflation rate reached 14.5 percent in December
2009 from 18.1 percent recorded in October 2009. The average food inflation for
2009 was 17.9 percent compared to an average of 12.7 percent in 2008 (Chart
1.1).
5
Chart 1.1: Tanzania: Annual Headline, Food and Non-food Inflation
0
2
4
6
8
10
12
14
16
18
202
00
7 J
an
Mar
May Ju
l
Sep
No
v
20
08
Jan
Mar
May Ju
l
Sep
No
v
20
09
Jan
Mar
May Ju
l
Sep
No
v
Per
cen
t
Headline Food Non-Food
.
C. Government Finance
14. During the year 2008/09, the Government executed the budget on the
basis of policy objectives that focused on strengthening domestic revenue
collection, public financial management and accountability. However, the fiscal
outturn for the year 2008/09 was characterized by a shortfall in revenue
collection and under-spending in expenditure categories.
15. Domestic Revenue: Total collection for the year reached TShs 4,293.1
billion, implying a shortfall of 10 percent against budget estimate for 2008/09
and 18 percent growth over 2007/08. The shortfall in collection was primarily
caused by the impact of the GFC that led to a decline in demand and prices in
the world market. Consequently, there was a slowdown in economic activities
and revenue collection, in particular, custom duties; domestic excise duties;
income taxes and non-tax revenue. The shortfall in domestic revenue collection
during the year necessitated the government to borrow Tshs. 323 billion
equivalent to 1.2 percent of GDP from domestic sources, through issuance of a
special bond.
6
16. The fiscal performance during the period July – December 2009, was also
characterized by a shortfall in revenue collection. Total domestic revenue
collected was Tshs 2,291.2 billion, equivalent to 90 percent of the targeted Tshs
2,540.8 billion for the period. The shortfall in tax revenue collections was
recorded in all major tax categories including taxes on imports (92 percent of the
target); income tax (86 percent); Excise duty (82 percent); VAT (99 percent);
and Other taxes (95 percent). Collections from Non Tax Revenue were 29
percent below the target. The short fall in collection of NTR is partly attributed to
the impact of recent Global economic recession which adversely affected tourism
sector in the country. The underperformance is also caused by delays in
implementation of the proposed measures to review rates of residence permits,
VISA and immigration fees. This will cause a revenue gap amounting to Tshs. 7.5
billion in the fiscal year 2009/10.
17. Foreign Resources: In the financial year 2008/09, Tshs. 1,025 billion
was received as General Budget Support (GBS) equivalent to 126 percent of the
estimates of Tshs. 812 billion. The increase of the GBS by 26 percent over the
estimate is due to the contribution from Canada and Germany which were not
initially budgeted and the effect of exchange rate depreciation against the US
Dollar. Grants and loans received in the form of projects and Basket Funds
during the period was Tshs. 1,281 billion, equivalent to 86 percent of the
approved estimates for the financial year 2008/09. The shortfall was caused by
slow implementation of projects mainly emanating from prolonged procurement
procedures; failure of some MDAs, Regions and LGAs to account for Donor
funds; and non use of exchequer system by some development partners on
project funds.
18. Performance during the period July-December 2009 indicates that foreign
assistance in the form of GBS was Tshs. 785 billion, equivalent to 79 percent of
the budget estimates of Tshs. 997 billion. On the other hand, some DPs reduced
7
part of their commitments on GBS. Projects and Baskets funds disbursed were
Tshs. 789 billion equivalent to 83 percent of budget estimates for that period.
19. Expenditure: The overall expenditure in 2008/09 reached 25.3 percent
of GDP compared to 22.9 percent in 2007/08. Total expenditure for 2008/09 was
Tshs 6,811.8 billion, equivalent to 95.0 percent of the total estimate of Tshs.
7,192.1 billion. Overall recurrent expenditure was broadly in line with budget
estimates, which is a significant improvement in expenditure execution compared
to the recent past. Development expenditure was 86 percent of the estimate for
the period.
20. Government expenditure during the period July-December 2009 was Tshs
4,283.6 billion or 88 percent of the estimates of Tshs 4,866.6 billion for the
period. Recurrent and development expenditures in the same period were Tshs
3,036.7 billion and Tshs. 1,246.9 billion respectively.
D. Public Debt
21. The public debt 1 stock at the end of November 2009 stood at USD
6,765.65 million, being an increase of 10.8 percent from the amount at the end
of June 2009. The increase is attributed to the new disbursement and issuance
of new Government Bonds to meet infrastructural challenges. Out of the debt
stock, external debt accounts for 72.7 percent and domestic debt is 27.3 percent.
External debt stock stood at USD 4,920.03 million, out of which USD 4,251.9
(86.4 percent) is disbursed outstanding debt (DOD) and the remaining amount of
USD 668.13 is interest arrears.
22. The stock of domestic debt as at the end of November 2009 stood at Tshs
2,400.17 billion, out of which Government securities are Tshs 2,391.82 billion
(99.7 percent) and other debts are Tshs 8.35 billion (0.3 percent). The debt
stock increased by Tshs 137.83 billion (6.1 percent) from Tshs 2,262.3 registered
1 The debt recorded here is only Government debt (i.e exclude private debt)
8
at the end of June 2009. The increase was mainly due to issuance of
government bonds.
E. Money and Credit Development
23. After recording a persistent strong growth at an annual average of 35.3
percent for the past 3 years, the growth of banks‟ credit to the private sector
eased to an average of 27.9 percent in 2009.During the year ending December
2009, the ratio of private sector credit to GDP declined to 17.0 percent from
18.4 percent registered at end December 2008. The decline is mainly attributed
to a continued cautious attitude by banks in extending credit to the private
sector, following the global financial crisis. The cautious stance towards lending
to the private sector was mirrored through increase in holding of foreign assets.
The slowdown in banks credit was observed mostly in agriculture, mining and
quarrying, manufacturing, building and construction, while transport,
communication, hotels and restaurants activities sustained strong credit growth.
On the other hand, personal loans2 and credit to trade activities grew albeit at a
slow pace. Meanwhile, during the period under review, personal loans continued
to sustain large shares of the banks‟ credit, followed by trade and manufacturing
activities (Chart 1.2).
2 Personal loans are loans taken by individuals from banks by either being guaranteed by employers or by providing collaterals. Such
loans are used for businesses, building houses, paying for school fees etc.
9
Chart 1.2: Percentage Share of Outstanding Banks‟ Credit to Various Activities
18.2
17.8
16.5
10.7
8.0
7.9
3.6 3.8 3.9
9.6
20.5
18.3
15.3
11.3
7.1
7.2
4.5
3.3
3.1
9.3
22.0
18.3
11.8
10.9
7.8
9.1
4.0
3.0
3.9
9.2
22.6
19.1
11.4
10.0
9.6
8.8
4.0
2.7
3.7
8.1
Personal Trade Manufacturing Agriculture Other Services Transport and Communication
Electicity Building and Construction
Hotels and Restaurants
Other Economic Activities
Nov-07 Nov-08 Oct-09 Nov-09
Source: Bank of Tanzania
24. Notwithstanding the slow-down in credit to private sector, banks
continued to mobilize deposits, reaching a stock of TShs 7,190.1 billion by end
December 2009 compared with Tshs 6,012.9 billion in December 2008. During
the year ending December 2009, banks mobilized deposits amounting to TShs
1,177.3billion compared to TShs 955.5 billion mobilized during the corresponding
period in 2008. Meanwhile, financial deepening3 echoed the cautious lending
stance taken by banks, as it declined slightly to an estimated average of 27.5
percent in 2009, from an average of 27.8 percent in 2008. Reflecting the
slowdown in the growth of credit to the private sector, broad money supply (M2)
slowed to an annual growth rate of 20.8 percent in December 2009, from 24.4
percent registered in the year ending December 2008. Similarly, the growth of
the extended broad money supply (M3) 4 slowed to 18.4 percent, from 19.8
percent recorded in the year ending December 2008.
3 Financial deepening generally means an increased ratio of money supply to GDP. The more liquid money is available in an
economy, the more opportunities exist for continued growth. 4 M3 consists of broad money (M2) + Foreign Currency deposits.
4 M2 consists of narrow money (M1) + savings deposits + time deposits.
M1 Consists of currency in circulation outside banks + demand deposits of residents in deposit money banks
M0 Consists of currency in circulation outside banks + deposit money banks‟ deposits with the Bank of Tanzania
10
25. Interest rates development: Commercial banks‟ interest rates have
manifested positive developments, notably beginning 2006/07, as reflected
through the declining cost of borrowing funds in the face of increasing deposit
rates. While short term (up to one year) deposit rate increased to an average of
8.92 percent between July and December 2009 from 5.21 percent registered in
2003/04, short term lending rate declined to 13.93 percent from 15.75 percent.
As a result, the interest rate spread declined to an average of 5.01 percentage
points during the first half of 2009/10, from 10.54 percentage points in
2003/2004 (Chart 1.3).
Chart 1.3: Interest Rate Spread
0
2
4
6
8
10
12
14
16
18
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
26. The positive development in interest rates was mainly on account of
increase in competition associated with an increase in the number of banks and
financial institutions, decline in interest rates in the treasury bills market (which
act as an anchor to market determined interest rates), as well as a decline in the
rates at which the Bank of Tanzania lends funds to commercial banks. The
overall treasury bills rate declined from an average of 13.48 percent in 2006/07
to an average of 5.40 percent during the first five months of 2009/10. Likewise,
during the period, the 364-day T-bill rate declined to an average interest rate of
8.12 percent, down from 14.41 percent (Chart 1.4). The decline in the treasury
bills rates was due to deliberate efforts by the Government to reduce borrowing
11
from the banking system, and measures adopted by the Bank of Tanzania to
increase efficiency in the treasury bills market. In addition, effectively from
2008/09, the Bank has reduced the Bank rate at which commercial banks borrow
funds, thus pushing the rate to an average of 4.89 percent in the first half of
2009/10 from an average of 18.34 percent recorded in 2006/07.
Chart 1.4: Selected Interest Rates Movements (Annual averages)
27. The government recognizes that the margin between lending and deposit
rates is still high despite the decline, when compared with negotiated interest
rates between banks and prime customers. During the seven-year period, the
interest rate margin based on negotiated rates was on average 2.27 percentage
points compared with 7.06 for ordinary customers (Table 1.1). The difference is
mainly on account of perceived high risk of business attributable largely on
inadequate information on borrowers.
12
Table 1.1: Selected Interest rates applied by banks - annual averages
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 1/ Average
Annual deposit rate 5.21 5.94 7.26 8.78 9.50 8.60 8.92 7.74
Annual lending rate 15.75 15.54 15.65 15.23 13.95 13.67 13.93 14.82
Interest rate spread 10.54 9.60 8.39 6.45 4.45 5.07 5.01 7.07
Negotiated deposit rate 6.62 7.96 9.80 9.03 10.47 10.39 10.25 9.22
Negotiated lending rate 8.79 10.78 11.54 11.44 12.20 12.87 13.73 11.62
Spread based on negotiated interest rates 2.16 2.82 1.73 2.41 1.73 2.48 3.48 2.40
364-day T-bills 7.47 10.30 13.48 14.41 12.81 12.33 8.24 11.29
Overall T-bills 7.33 9.17 12.39 13.48 11.24 10.56 5.65 9.97
Bank Rate 12.29 14.14 17.09 18.34 16.30 15.31 4.89 14.05
Source: Bank of Tanzania
1/ July - December 2009
28. Narrowing the deposit-lending margin and maintaining positive interest
rates remains a big challenge to the Government. The challenge is being
addressed by reducing risks associated with lending to the private sector. The
Government (through the Bank of Tanzania) is implementing a number of
measures directed towards increasing financial deepening and outreach as well
as increasing competition in the financial sector. The measures include
establishment of credit reference bureau, which will provide reference on
creditworthiness of potential borrowers from banks, thus reduce risk of default;
and addressing weaknesses in the legal framework that obstruct realization of
land based collateral, including title deeds issuance and collateral registration.
F. External Sector Development
29. Performance in the external trade was fairly satisfactory, whereby the
trade net position improved by USD 652.7 million in 2009. Combining the trade
account with the service account, the value of export of goods and services
increased to USD 4,693.6 million in 2009, from USD 4,687.7 million recorded in
13
2008. During the period, import of goods and services declined by USD 575.3
million, from USD 8,089.2 million to USD 7,514.0 million. Consequently, current
account improved by USD 675.0 million, from a deficit of USD 2,883.1 million to
a deficit of USD 2,208.1 million in December 2009.
30. Goods Exports: During the year ending December 2009, export of goods
went down by 2.0 percent to USD 2,634 million, largely due to a decrease in
manufactured exports. Chart 1.5 summarizes the performance of selected
goods export during the past four years
Chart 1.5: Performance of Selected Goods Export
Millions of USD
786.4
195.8267.1
788.2
309.8 319.7
932.4
662.3
418.4
1076.1
497.6 470.8
Gold Manufactured Exports Traditional Exports
2006 2007 2008 2009
Source: Bank of Tanzania
31. During the period under review, exports of gold continued to account for a
large share of total exports of goods, accounting for 40.9 percent in 2009 and
34.7 percent in 2008 (Chart 1.6).
14
Chart 1.6: Contribution of Selected Items to Total Exports of Goods for the Year Ending December (in percent)
38.9
15.3
19.6
15.8
7.4
3.0
34.7
24.6
16.8
15.6
6.0
2.3
40.9
18.9
17.9
17.9
3.0
1.5
Gold Manufactured goods
Other Non-Traditional
Traditional Commodities
Re-exports Other Minerals
2007 2008 2009
Source: Bank of Tanzania
32. Services receipt: On annual basis, services receipt amounted to USD
2,059.6 million, being higher than USD 1,998.8 million recorded in 2008,
following an increase in receipts from businesses other than transportation and
travel. During 2009, receipts from other business services were USD 327.0
million, 40.0 percent higher than the amount recorded in the preceding year. On
the other hand, Travel which accounts for about 60 percent of total services
receipt amounted to USD 1,260.1 million compared to USD 1,288.7 million
recorded in 2008. Available statistics show that from January to November 2009,
the number of international arrivals was 697,131, being 10.6 percent lower than
the number of arrivals recorded in the corresponding period last year. The dismal
performance is partly attributed to the global financial crisis (GFC), which has
affected major sources of tourists to Tanzania. However, improvement in travel
receipts is anticipated given the recovery of major economies from GFC and
15
concerted efforts by the government and other stakeholders in promoting
Tanzania as a unique tourist destination in new emerging markets. Chart 1.17
depicts the performance of the main services receipt for the past four years.
Chart 1.7: Service Receipts for the year ending December
Millions of USD
34
3.7
95
0.2
23
4.1
33
1.9
1,1
98
.8
34
5.0
36
4.6
1,2
88
.7
34
5.4
33
4.3
1,2
60
.1
46
5.2
Transportation Travel (Tourism) Other Services
2006 2007 2008 2009
Note: Other Services‟ include: Communication, Construction, Insurance,
Financial, Computer Information, Government, Royalties, and Personal and Other
business services.
33. Imports: During the year ending November 2009, the value of goods
import was USD 5,775.7 million compared to USD 6,483.4 million recorded in
2008. This development was largely due to a significant drop in imports of
intermediate goods particularly oil products (Table 1.7). The value of oil imports
declined by 28.9 percent to USD 1,307.5 million due to a fall in the prices of oil in
the world market. Meanwhile, the volume of imported oil increased from
2,316,481.9 tons recorded in 2008 to 2,916,484.4 tons. Import of capital goods
was USD 2,513.1 million, being lower than USD 2,648.6 million recorded in 2008
16
Table 1.2: Import of Goods Millions of USD
2008
Dec Nov DecDec 08-
Dec 09
Nov 09 -
Dec 092008 2009
p
CAPITAL GOODS 211.6 220.0 242.3 14.5 10.1 2,648.6 2,513.1 -5.1
Transport Equipment 67.3 58.6 74.2 10.2 26.7 787.8 741.0 -5.9
Building and Constructions 55.9 70.1 69.6 24.5 -0.8 619.5 562.1 -9.3
Machinery 88.4 91.3 98.5 11.5 7.9 1,241.3 1,209.9 -2.5
INTERMEDIATE GOODS 123.8 186.2 172.2 39.1 -7.5 2,551.3 1,870.6 -26.7
Oil imports 75.8 130.6 114.2 50.5 -12.6 1,838.6 1,307.5 -28.9
Fertilizers 9.8 10.6 11.1 13.1 4.6 150.4 95.2 -36.7
Industrial raw materials 38.2 45.0 47.0 23.0 4.4 562.3 467.9 -16.8
CONSUMER GOODS 118.4 126.0 121.4 2.5 -3.7 1,283.5 1,392.1 8.5
Food and food stuffs 25.9 40.0 24.6 -5.0 -38.4 290.9 341.9 17.5
All other consumer goods1
92.5 86.0 96.8 4.6 12.5 992.7 1,050.2 5.8
GRAND TOTAL (F.O.B) 454.0 532.4 535.9 18.03 0.7 6,483.4 5,775.7 -10.9
GRAND TOTAL (C.I.F) 499.0 585.1 588.9 18.03 0.7 7,124.6 6,347.0 -10.9
% ChangeItems%
Change
Year Ending Dec2009 p
p = Provisional
Oil imports refers to refined petroleum products
1 It includes pharmaceutical products, paper products, plastic items,
optical/photographic materials, textile apparels.
Source: Bank of Tanzania and Tanzania Revenue Authority
34. Despite the decline in the value of oil imports, the same continued to
dominate goods imports. The share of oil imports during the year ending
December 2009 was 22.6 percent, compared with 20.1 percent for imports of
machinery and 18.2 percent comprising all other consumer goods (Chart 1.8)
17
Chart 1.8: Contribution of Selected Items to Total Goods Imports
for the Year Ending December (In percent)
30
.1
17
.9
16
.7
9.8
8.6 9.2
6.5
1.2
28
.4
19
.1
15
.3
12
.2
9.6
8.7
4.5
2.3
22
.6
20
.9
18
.2
12
.8
9.7
8.1
5.9
1.6
Oil Machinery Other consumer
goods
Transport equipment
Building and construction equipment
Industrial raw materials
Food and foodstuffs
Fertilizers
2007 2008 2009
Source: Bank of Tanzania
35. Service Payment: During the year ending December 2009, services
payment was USD 1,738.2 million, representing 8.2 percent higher than the
payment made in 2008, largely due to an increase in payment for travel, other
business and government services. On the other hand, transportation payments
which mainly consist of freight payments declined in line with the decrease in
goods import.
G. Balance of Payment
36. During the year ending December 2009, the overall Balance of Payments
remained positive, recording a surplus of USD 428.9 million from a surplus of
USD 148.2 million recorded during the previous year. The positive development
is largely attributed to the narrowing of the current account deficit by 23.4
percent to a deficit of USD 2,208.1 million, following a decline in import bill and
increase in the official current transfers During the period under review, the
gross reserves position increased to USD 3,551.3 million from USD 2,872.6
18
million recorded in the corresponding period in 2008. This level of reserves was
enough to cover about 5.6 months of imports of goods and services.
H. Exchange Rate Development
37. The value of the shilling against the US dollar depreciated on average by
10.3 percent to Tshs. 1,318.71 in 2009 per USD, from an average of Tshs.
1,195.75 per dollar in 2008 (Chart 1.9). The decline in the value of the shilling
was mainly attributed to speculation on fluctuations in foreign exchange supply,
following the global financial crisis towards the end of 2008. Banks‟ speculation is
partly reflected through accumulation of foreign assets during the period. During
the year ending December 2009, foreign assets in banks increased to a stock of
USD 985.8 million from USD 652.0 million recorded in November 2008,
representing an increase of 51.2 percent. In contrast, during the corresponding
period in 2008, foreign assets declined by USD 181.7 million or 21.8 percent.
Going forward, it is expected that the domestic currency will stabilize, as fears on
global financial crisis dissipate, coupled with an increase in the supply of foreign
exchange in the banking system, notably foreign reserves at the Bank of
Tanzania.
Chart 1.9: Exchange Rate Movements (Monthly Weighted Average)
1,050
1,100
1,150
1,200
1,250
1,300
1,350
19
Regional Integration and International Cooperation
38. Tanzania is a member of SADC and EAC regional integration blocs. SADC
is at the stage of Free Trade Area in the integration process and studies are
underway for the establishment of SADC Customs Union. EAC on the other hand,
is already at a Customs Union stage and negotiation for the establishment of EAC
Common Market has been concluded and the Protocol was signed by the Heads
of State on 20th November, 2009 in Arusha. The Protocol is expected to come
into force in July 2010 upon ratification by all five Partner States. With a view to
deepen regional integration The EAC, SADC and COMMESA have initiated the
EAC-SADC-COMMESA Tripate arrangement aiming at establishing a EAC-SADC-
COMMESA Free Trade Area, and subsequently a EAC-SADC-COMMESA Custom
Union. Other regional economic cooperation initiatives include NEPAD and EPA
with the EU. It is important that Tanzania is well prepared to take advantage of
the opportunities brought by these regional integration initiatives.
Achievements
39. During the period under review the following notable achievements were
realized in the regional integration agenda:
(i) Implementation of a Custom Union that has resulted into increased
trade volumes and investments flows to Tanzania from EAC Partners
States, and increased revenue;
(ii) Increased exports to the EAC market from USD 145.47 million in 2004
to USD 310.47 million in 2008;
(iii) Investment projects to Tanzania from EAC increased from 100 projects
in 2007 worth USD 131.59 to 177 projects in 2007 worth USD 441.94;
(iv) Investment to Tanzania from EAC resulted into increased employment
from 10,627 new employment opportunities in 2007 to 12,051new
employment opportunities in 2008;
20
(v) Protocol for the establishment of EAC Common Market has been signed
in November 2009;
(vi) Completion of stakeholders‟ views collection on fast tracking of the EAC
Political Federation, and the initiation of a study to consolidate
concerns and challenges identified during the consultation process so
as to identify ways of addressing the challenges as directed by the 11th
EAC Summit in November 2009;
(vii) Implementation of the East African Road Network Project, in particular
the commencement of the construction of the Arusha – Namanga –
Athi River Road Project, a road that will connect Tanzania and Kenya;
(viii) The development of the East Africa Railway Master plan;
(ix) The inauguration of the EAC Head quarters by EAC Heads of States in
November, 2009 marked the beginning of the construction works; and
(x) Commencement of Environment Management Programme II (LVEMP
II) in August 2009 that aims at sustainable utilization of resources and
environment management.
Challenges
40. During the period under review, the following major challenges were
identified:
(i) Public awareness on EAC integration is still limited among the various
stakeholders in the country, thus constraining their ability to take full
advantage of the emerging opportunities from the integration process;
(ii) Mainstreaming EAC integration agenda into Government‟s policies and
strategies;
(iii) Facilitating free circulation of goods in the Community while safeguarding
domestic revenue collection;
(iv) Identifying skills demand in the labour market in EAC-CM;
(v) Exploring the impact of the capital account liberalization on
macroeconomic stability; and
21
(vi) Effective administration, financing and implementation of the deeper
stages of integration.
Implementation of the Rescue package against the Global Economic
Recession
Development during the Crisis
41. Like other economies, Tanzania‟s economy has been affected by the
global financial and economic crisis. Although Tanzania‟s financial system has
been resilient to the first round effects of the financial crisis due to limited
integration to international financial and capital markets, the second effects have
been vivid in real economy especially in tourism, agriculture and mining sectors
leading to a fall in the prices of most commodity exports, revenue collection,
foreign investments and increase in unemployment.
42. Prior to the crisis, GDP had been projected to grow at 7.8 percent in 2009.
However, after taking into account impacts of the crisis, the projection has been
revised downwards to 5.0 percent in 2009. On the Government revenue side,
domestic revenue collection was not satisfactory during 2008/09 as it was below
target by 10 percent. Significant shortfalls were on excise duty, income tax and
import duty.
43. Likewise, traditional exports were affected by the crisis, especially cotton
and coffee. Consequently traders who had bought cash crops at higher farm-
gate price and sold at lower prices in the world market were affected by the
crisis. As a result, private companies and cooperative unions‟ capacity to service
their bank loans have been constrained, and commercial banks somehow
became cautious in extending credits. Similarly, with the exception of gold
whose export earnings increased by 2.4 percent, all other minerals recorded a
decline in world market prices during the period under review. The increase in
the value of gold exports was largely due to a rise in the gold prices, from USD
22
874 per troy once to USD 915.9 per troy once, equivalent to an increase of 4.8
percent over the period. However, export volumes decreased slightly to 32.4
tons from 32.7 tons recorded during the year to October 2008.
Government Response
44. In response to the global financial and economic crisis, the Government
prepared a rescue package amounting to Tshs 1,692.5 billion to mitigate the
adverse impact of the crisis on the Tanzania economy. Among the measures
proposed in the Plan included:-
(i) Compensation for losses due to a fall in demand and prices of
commodities in the world market during the 2008/09 season; (Tshs 21.9
billion);
(ii) Guarantee for debt rescheduling (Tshs 45 billion);
(iii) Price subsidization (Tshs 80 billion);
(iv) Expanding Export Credit Guarantee Scheme (Tshs 10 billion);
(v) Increasing capital for SME guarantee scheme (Tshs 10 billion);
(vi) Improving railway and roads infrastructure (Tshs 110.4 billion); and
(vii) Ensure food security (Tshs 141 billion).
Implementation status
45. As of end December 2009, the total amount disbursed for rescue purpose
was Tshs. 870.8 billion, equivalent to 51 percent of the approved amount as
detailed below:
(i) Compensation for losses: A total of 35 cotton buyer firms requesting to
be compensated for a loss of Tshs 28.6 billion were scrutinized. After
review, the amount which was considered to be eligible for compensation
was Tshs 26.9 billion. As of end December, a total of 19.9 billion was
disbursed to compensate for losses incurred by cotton traders.
(ii) Guarantee for debt rescheduling: A total of Tshs 15.8 billion was
disbursed as loan rescheduling guarantee as at end December 2009. The
guarantee is aimed at enabling borrowers to access loans from
23
commercial banks to finance their economic activities, especially buying
crops from farmers during 2009/10 season;
(iii) Price subsidization: The Government disbursed Tshs 20 billion in July
2009 for stabilization of cotton price. Under this arrangement, cotton
farmers, through Tanzania Cotton Board, receive 80 shillings per kilogram
during 2009/10 season. The subsidy is intended to provide incentives to
cotton farmers;
(iv) Guarantee Schemes: The Government disbursed Tshs 6.2 billion to
expand loans for ECGS and another Tshs 6.2 billion to increase availability
of loans through SME guarantee schemes during the period under review;
(v) Loan to ARTUMAS: In September, 2009 the Government provided Tshs
10 billion on-lending facility to ARTUMAS Company, through Tanzania
Investment Bank. The Company failed to raise capital from international
financial markets after its shares value fell drastically. The loan is intended
to finance investment in energy sector in Lindi and Mtwara regions;
(vi) Domestic borrowing: In June 2009, the Government borrowed Tshs
323 billion from the domestic market, equivalent to 1.2 percent of GDP to
finance revenue shortfall in 2008/09. Also in July 2009, the Government
borrowed Tshs 150 billion as part of 1.6 percent of GDP to finance its
2009/2010 budget; and
(vii) Balance of Payment Support: In June, 2009 the Government received
USD 245 million (Tshs 325.9 billion) loan from IMF, through Exogenous
Shocks Facility (ESF). The funds compensate shortfall in foreign exchange
earnings.
46. The Government, through the Bank of Tanzania continued to exercise
strict surveillance over financial institutions and special attention to foreign banks
that are operating in Tanzania to ensure their operations are in line with laws
and regulations. As a result of effective Bank‟s supervision and surveillance, the
financial system in Tanzania remains safe, stable, sound and resilient to the
24
crisis. The banks have ample liquidity to guarantee maturing obligations and
credit sector have continued to grow.
25
CHAPTER TWO
REVIEW OF THE PLAN AND MKUKUTA IMPLEMENTATION
FOR 2008/09
47. In 2000, the Government started to implement the National Development
Vision 2025 (TDV 2025). The Vision provides the direction of the country‟s
development, and all sectoral policies and strategies are aligned to this Vision.
Along with TDV 2025, the medium Term Plan (MTP) was developed as a vehicle
to operationalize the vision‟s aspiration into implementable medium and short
term plans.
48. Notwithstanding the implementation of the MTP, the Poverty Reduction
Strategy (PRS) was adopted in 2000 in the context of the enhanced Highly
Indebted Poor Countries (HIPC) initiative. Later on, in 2005, MKUKUTA was
prepared as the national framework which accords high priority to growth and
poverty reduction in Tanzania‟s development agenda. Since then, MKUKUTA has
continued to be an overarching planning Framework in Tanzania and has always
played a pivotal role in resource allocation.
49. However, the TDV 2025 needs to be implemented through MTP along with
MKUKUTA which is a strategy for growth and poverty reduction. Hence, there is
a need to reinstate the long, medium and short term plan. These plans will
accommodate all other national programs, plans and strategies. Priority areas to
be focused by all players will be identified and implemented.
50. During the period under review, the assessment of MKUKUTA
implementation is done through the three clusters, namely Growth and reduction
of Income Poverty, Quality of Life and Social Well-being, and Good Governance
and Accountability. Detailed information is contained in the MKUKUTA Annual
Implementation Report (MAIR) 2008/2009 and the Mid-term Review of 2009/10.
26
Cluster I: Growth and reduction of Income poverty
51. This section discusses the performance of key sectors in this cluster. As
revealed in MAIR 2008/2009, Poverty and Human Development Report (PHDR-
2009) and other socio-economic reports, the performance of these sectors is as
follows:
Agriculture
52. During the year ending June, 2009 the priorities were on enhancing the
implementation of Agricultural Sector Development Programme (ASDP)
particularly in irrigation systems development, strengthening research and
extension services and enhancing productivity. Broad interventions included the
implementation of: District Agricultural Development Plans (DADPs); the District
Agriculture Sector Investment Project (DASIP); the Participatory Agricultural
Development and Empowerment Project (PADEP), and Agriculture Marketing
Systems Development Programme (AMSDP).
53. Achievements: During the period under review, the following are some
of the specific achievements recorded:
(i) The area under irrigation increased from 289,245 hectares in 2007 to
310,745 hectares in June, 2009 out of which 255,675 hectares are for
small scale farming and 55,070 hectares are under large scale farming.
Consequently, production of paddy increased from 2 to 5 tonnes per
hectare and tomatoes from 5 to 18 tonnes per hectare in Igomelo
irrigation scheme (Mbarali); maize from 1.5 to 4 tonnes per hectare in
Mombo irrigation scheme (Korogwe) and onions from 13 to 26 tonnes per
hectare in Mang‟ola irrigation scheme (Karatu);
(ii) Increased incomes and improved standards of living specifically for the
rural farmers‟ irrigation schemes. For example, farmers in schemes of
Igomelo (Mbeya Rural) and Madibira (Mbarali) income accruing from
paddy production per hectare increased from Tshs 520,000 before
27
irrigation interventions to Tshs 1,500,000 after the improved
interventions. This also resulted in improved livelihood such as
construction of better houses by the scheme members;
(iii) A total of 141,050 metric tonnes (MT) of fertilizer, (DAP 8,850 MT; UREA
73,700 MT; and MRP 58,500 MT) equivalent to 108.5 percent of the target
(130,000 MT) were distributed in 11 regions under voucher scheme. As a
result, a total of 737,000 farmers benefited out of targeted 700,000
equivalents to 105.3 percent of target. Furthermore, a total of 7,180 MT
of improved seed (Maize hybrid 6,488 MT and Maize OPV 692 MT)
equivalent to 239.3 percent of the target (3,000 MT) were distributed in
11 regions under voucher scheme. A preliminary performance assessment
done in six regions with more potential for producing surplus food namely
Morogoro, Iringa, Ruvuma, Mbeya, Rukwa and Kigoma revealed that
average productivity of maize are expected to increase from 17 bags to 25
bags per acre and paddy 4 to 25 bags per acre;
(iv) A total of 472 tractors, 495 power tillers and 62,194 animal drawn
implements (e.g. ox-ploughs) were availed in the country to be accessed
by farmers so as to bolster their agriculture productivity. Also through
DADPs, some LGAs supported farmers through a cost sharing mechanism
with 166 power tillers, 49 tractors and 81 ox-ploughs. Moreover, four
Ward Agricultural Resource Centres were constructed and six
rehabilitated;
(v) As a result of these interventions in agro mechanization together with the
inputs subsidy programme, and irrigation interventions coupled with
favourable weather conditions in the major production areas, the
production of food crops in 2008 was relatively higher for maize, paddy,
cassava and wheat;
28
(vi) Food production reached a total of 10.87 million tonnes in 2008 compared
to the national demand of 10.33 million tonnes. As the result, the Food
Self Sufficiency Ratio (SSR) increased from 104 percent in 2007 to 105
percent in 2008. However, this achievement on SSR was contributed by
surplus production of non-cereal crops such as cassava, plantain, potatoes
and legumes. This is because, the total food requirement for cereal crops
in 2008/09 was 6.45 million tonnes while actual production was 5.59
million tonnes causing a deficit in cereal crops of 860,000 tonnes; and
(vii) A total of 230,155 farmers and 47,284 livestock keepers were trained
individually and in groups. The training covered among others, group
formation, establishment and management of SACCOS and record
keeping. In addition, a total of 2,321 farmers groups and SACCOS were
established and provided with training on how to manage themselves.
54. On the other hand, the specific achievements during the period from July
to December, 2009 are as follows:
(i) The area under irrigation increased to 322,945 hectares from 310,745
hectares in June, 2009;
(ii) In provision of inputs subsidy, a total of 4,501,100 vouchers have been
printed of which 1,500,000 vouchers are for phosphate fertilizers and
1,501,100 vouchers for UREA. 1,250,000 vouchers are for maize hybrid,
220,000 vouchers are for maize OPV and 30,000 vouchers are for paddy;
(iii) A total of 64,545.555 MT of maize and 271.636 MT of sorghum have been
procured for maintenance of stock through NFRA. A total of 84,056.932
MT of maize including carry over stock have been distributed to deficit
areas;
(iv) A total of 3,565 students are undergoing residential training at 15 training
institutes while a total of 623 extension staff were recruited and posted to
LGAs in the six food basket regions;
29
(v) A total of 172.72 tonnes of breeder seeds were produced by research
institutions, 39 new improved seed varieties of various crops were
released. Moreover, 488 tonnes of improved seeds were purchased from
National Service (JKT) and Prison (Magereza) farms under contractual
arrangement;
(vi) A total of 75 tractors worth Tshs. 2,341,829,484 and 11 Power Tillers
worth Tshs. 98,026,000 were procured through AGITF credit
arrangement. In addition, a total of 355 tractors and 1,344 power tillers
have been imported in the country by private dealers; and
(vii) Red locusts were controlled in a total of 21,005 hectares of invaded area.
Challenges
55. The sector faces the following main challenges:-
(i) Harnessing new technologies which are cost effective and also in
conformity with natural climatic regime of the country;
(ii) Facilitating private sector participation in the delivery of research and
extension services;
(iii) Sustaining generic improvement for better seeds with high yield;
(iv) Developing efficient and effective agricultural data and management
information systems for better research, better results and sustainable
planning at all levels;
(v) Enhancing efforts to attract innovative commercial agricultural
investments;
(vi) Promoting agro processing capacity, agricultural production incentives and
marketing information; and
(vii) Increasing investment in irrigated agriculture and production of
agricultural inputs.
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Livestock
56. The focus in 2008/09 was on enhancing livestock productivity by
improving local breeds through cross breeding, strengthening National Artificial
Insemination Centre (NAIC) and field services, strengthening pasture seed
production and conducting milk consumption promotion.
57. Achievements: During the period under review, the following are some
of the specific achievements recorded:
(i) The production of meat in the country increased from 410,706 tonnes in
2007 to 422,230 tonnes in 2008, equivalent to an increase of 2.8 percent.
Out of this, 225,178 tonnes were beef, 82,884 tonnes were
bacon/mutton, 36,000 tonnes were pork and 78,168 tonnes were chicken.
An increase in production was due to increase in number of livestock as
well as increased meat demand;
(ii) A total of 62,000 cattle were fattened through fattening programme
(feedlot) in various ranches in 2008 compared to a total of 29,600 cattle
fattened in 2007. These ranches include Glienshils Ranch and Mtibwa
Feedlot (Morogoro), Sumbawanga Agricultural and Animal Feeds
Industries (SAAFI), Manyara and Mzeri ranches and small livestock
keepers in Mara, Mwanza and Shinyanga regions. In addition, after
dividing the 294,188 hectares of NARCO ranches into 124 small ranches
with an area of between 2,000 and 4,000 hectares, additional investment
has reached over 25,000 cattle;
(iii) A total of 2,954 cattle worth Tshs 599 million were bought by NARCO
from livestock keepers around the ranches for fattening. A total of 6,748
cattle worth Tshs 2.7 billion were sold by National Ranching Company
(NARCO);
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(iv) Egg production increased from 2.69 billion eggs in 2007 to 2.81 billion in
2008; and
(v) Increase in per capita consumption of milk from 32 litres in 2000 to 41
litres in 2008.
Challenges:
58. Major challenges include the following:-
(i) Establishment of livestock processing industries;
(ii) Adopting better animal husbandry in ranches and better pastures;
(iii) Enhancing capacity to control existing and newly emerging livestock
diseases;
(iv) Ensuring the availability of drugs and veterinary facilities;
(v) Ensuring the availability of water/favourable weather condition for
pasture; and
(vi) Changing livestock farmers‟ attitude from traditional to commercial
livestock farming practices.
Fishing
59. In 2008, the sector recorded a growth rate of 5.0 and contributed about
1.3 percent to GDP. During the year under review, the focus was on
implementing interventions that will increase contribution of aquaculture to the
improvement of food security, employment and incomes.
60. Achievements: During the period under review, the sub-sector recorded
the following broad achievements:
(i) The value of fish produced increased from Tshs. 291.8 billion in 2007/08
to Tshs. 371.4 billion in 2008/09;
(ii) The average per capita fish consumption in 2008/2009 was about 8.1
kilograms as compared to the FAO recommended consumption rate of
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10.7kgs. The average per capita fish consumption in 2007/08 was about
6.9 kilograms; and
(iii) A total of 552,630 fish fingerlings of Tilapia (Perege) were produced from
Kingolwira Fish Farming Center and distributed to various regions;
(iv) In 2008/2009, total Mari culture production in Tanzania was 667.9 tonnes
whereby seaweed farming accounted for the majority of this production
(411.9 tonnes) followed by prawns (250 tonnes), milk fish (5 tonnes),
mud crab fattening (1 ton) and pearl oyster (148 pieces).
Challenges
(i) Facilitating the industry with modern fishing equipment and skills;
(ii) Enhancing the knowledge on how to tap the vast potential for aquaculture
development;
(iii) Improving and sustaining quality and sanitary standards;
(iv) Preventing illegal fishing practices, trafficking of fish and fisheries products
across the borders, and promoting environmental conservation; and
(v) Improving the collection, processing, analysis and dissemination of
fisheries information.
Kilimo Kwanza
61. The Government has adopted a „Kilimo Kwanza‟ initiative in 2009 so as to
transform peasant and small farmers to commercial farmers, make agriculture
attractive for investment and supportive to other industries for bolstering
productivity in the economy. Indeed, Kilimo Kwanza is a holistic approach for the
development of the agricultural sector, which involves all sectors in the economy.
It provides national coordination of resources, planning and accountability for
implementation of agricultural transformation, which also emphasizes private
sector participation. Moreover, it focuses on strategic agricultural produce and
the whole spectrum of small, medium and large scale farmers. It is worth noting
that Kilimo Kwanza does not replace ASDP but rather complements it. To this
33
end, Kilimo Kwanza is a crucial stride for Tanzania to move forward with concrete
steps towards the transformation of the agricultural sector into a green
revolution.
62. The implementation of Kilimo Kwanza is guided by the following ten main
pillars:
(i) Vision of Kilimo Kwanza: it emphasizes more on political will to
implement Kilimo Kwanza and focus on modernization and commercial
agriculture for peasant, small, medium, and large scale producers;
(ii) Financing Kilimo Kwanza: it focuses more on sectorial budgets
oriented to Kilimo Kwanza and the way to finance agricultural activities in
the economy including mobilization of the private sector to increase
investments in Kilimo Kwanza and also to empower farmers‟ cooperatives
and SACCOS to mobilize, manage, and channel funds for agricultural
production to their members;
(iii) Institutional reorganization for management of Kilimo Kwanza:
it brings together key agricultural functions under one roof for
effectiveness, efficiency and timely decision making;
(iv) Paradigm shift to strategic framework of Kilimo Kwanza: it seeks
to identify areas and modalities of priority production of: strategic
agricultural commodities and crops; and looking issues of value addition;
(v) Land for Kilimo Kwanza: This requires amendment of Acts to facilitate
operationalization of Kilimo Kwanza as well as surveying of land for
agricultural investment;
(vi) Incentives for Kilimo Kwanza: the purpose is to look into fiscal and
non fiscal incentive policies that will stimulate Kilimo Kwanza and
therefore, bolster productivity;
(vii) Industrialization for Kilimo Kwanza: this will provide value chain for
agricultural development that is seeds, artificial insemination, fingerlings,
34
fertilizers, farm implements and machinery; human resources, agro
processing; etc need to be integrated;
(viii) Science, technology and human resources for Kilimo Kwanza: this
will institute mechanism for effective utilization of science, technology and
human resources for Kilimo Kwanza;
(ix) Infrastructure development for Kilimo Kwanza: this includes
development of irrigation schemes; transport and communication to
markets; storage; and rural electrification to stimulate agriculture
activities; and
(x) Mobilization of Tanzanians for Kilimo Kwanza: this involves
sensitization and internalization of plans consistent with Kilimo Kwanza.
63. The whole process of implementing Tanzania‟s Green Revolution is
projected to be completed within ten years, and time frame for implementation
has been set for each pillar. The responsibilities of each actor are well explained
within the ten pillars and MDAs, Regions and LGAs have been required to align
their plans consistent with the implementation of Kilimo Kwanza.
Manufacturing
64. During the year 2008 manufacturing sub-economic activity grew at 9.9
percent compared to 8.7 percent in 2007. The increase in growth rate was
attributed to sustainable industrial production especially in SMEs and the
increased in investment in Export Processing Zones (EPZs). In addition, the
Government‟s medium term priority has been to encourage development of basic
industries, value addition in agro-processing and reduction in cost of doing
business.
65. Achievements: During the period under review, the following are the
specific achievements recorded:
35
(i) The value of exports of manufactured goods rose from USD 309.8 million
in 2007 to USD 662.3 million in 2008; and
(ii) Investment in the sector has also increased from 192 projects worth Tshs.
634,260 million in 2007 to 221 projects worth Tshs 2,192,508 million in
2008.
Challenges
(i) Coping with high costs of transportation due to poor roads, railways, and
telecommunications;
(ii) Grappling with unreliable power supply;
(iii) Addressing high costs of doing business;
(iv) Applying modern, appropriate and efficient technologies;
(v) Acquiring skilled and experienced labour force;
(vi) Enhancing investment and proper coordination of research and
development (R&D); and
(vii) Accessing internal and external sources of credit.
Minerals
66. During the period under review, the Government focused on promoting
and facilitating value addition activities (especially on precious stones) within the
country which increased income and employment opportunities; increasing the
sector‟s contribution to the GDP and poverty reduction. Other measures taken by
the Government include curbing tax evasion by dishonest miners, developing
small-scale miners through conducting training programme and gold auditing.
67. Achievements: During the period under review, the sub-sector recorded
the following specific achievements:
36
(i) The Government conducted training programmes on mining management
for 51 small scale miners in Geita through Zonal and Resident Mines
Office of Mwanza region;
(ii) The Gold Audit Unit effectively audited the quality and quantity of gold
produced and exported by five large-scale gold mines (Geita, Bulyanhulu,
Tulawaka, Golden Pride and North Mara) for the purpose of determining
the value and revenue generated;
(iii) The Government has continued to strengthen the Arusha Gemstone
Carving Centre for the purposes of providing training on mineral value
addition to small scale miners;
(iv) The value of mineral export increased from USD 982.711 million in
2007/08 to USD 1,075.943 million in 2008/09; and
(v) Designing of the Sustainable Management of Mineral Resources Project
(SMMRP) which focuses on spurring local economic development through
mineral sector development, promoting value addition in minerals,
reducing conflicts in mining sites, improving management of
environmental and social issues related to mineral sector development,
increasing growth, and enhancing competitiveness in the mineral sector.
Challenges:
(i) Strengthening control mechanism to curb revenue loss from minerals;
(ii) Strengthen local capacity to manage and invest in the sector;
(iii) Facilitating value addition activities to minerals; and
(iv) Addressing the issue of environment degradation caused by mining
activities.
Roads
68. During the year under review, the Government continued to improve
roads infrastructure in the country, specifically focusing on
construction/rehabilitation of trunk, regional and district roads.
37
69. Achievements: During the period under review, the following are some
of the specific achievements recorded. The overall road network condition shows
an increase from 90 percent in June 2008 to 95 percent in June 2009 for roads in
good and fair condition. In the year 2008/2009, the government through
TANROADS planned to upgrade and rehabilitate a total of 218 kilometres of
trunk roads and 1,209 kilometres of regional roads and construct 14 bridges.
Physical implementation of upgrading and rehabilitation works for trunk roads
was 117 kilometres and regional roads were 558 kilometres and bridges
constructed were 13. Target for maintenance works of trunk and regional roads
was 27,878 kilometres whereby physical implementation was 27,232 kilometres.
In addition, 2,091 bridges were maintained. Overall maintenance works reached
96 percent of the annual target. The LGAs planned to carry out Routine
maintanance of 22,578 kilometres, spot improvement of 6,876 kilometres and
periodic maintanance of 1,677 kilometres. Physical performance during the year
was as follows: Routine maintanance was 11,167 kilometres, spot improvement
was 4,831 kilometres and periodic maintanance was 1,141 kilometres.
Challenges:
(i) Expanding the road network capacity to match with increasing traffic,
particularly in urban areas;
(ii) Control of vehicle overloading and vandalism of transport infrastructure;
(iii) Improving connectivity countrywide and to landlocked neighbouring
countries;
(iv) Strengthening procurement planning and contract management; and
(v) Nurturing the local construction industry to enable it participate optimally
in the construction agenda of the nation.
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Energy
70. In 2008/2009, the focus was to liberalize the power sub-sector, raising
awareness on the benefits in the use of natural gas available in the country,
develop alternative sources of energy to reduce reliance on major hydro-plants
and promoting investments in petroleum exploration.
71. Achievements: During the period under review, the sector registered the
following specific achievements:
(i) Electrification of five District Headquarters (Mbinga, Mkinga, Ludewa,
Kilolo and Simanjiro) has been completed while three other district
headquarters (Kilindi, Bahi, and Uyui) are in final stages of completion;
(ii) Buzwagi and North Mara mines have been connected to the national grid;
(iii) 100MW and 45MW gas power plants have been commissioned ;
(iv) Electrification of Namanga Township from Kenya;
(v) Two new Perkins engines installed in Kigoma to improve reliability of
power supply;
(vi) Effected payment for diesel powered generators for district headquarters
of Kasulu, Kibondo, Sumbawanga, and Ngorongoro; and
(vii) Six industries were connected to the natural gas distribution network in
Dar es Salaam making a total of 27 industries using natural gas.
Challenges
(i) Attracting strategic investors to the energy sector;
(ii) Increasing accessibility to electricity by the population from the current 14
percent;
(iii) Improving the state of generation, transmission and distribution networks;
(iv) Ensuring interconnection with neighbouring Countries grid systems,
(v) Promoting alternative sources of energy; and
(vi) Establishing the National Strategic Fuel Reserve.
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Land
72. During the year under review the major focus was on provision of land
title deeds, demarcation of land for infrastructural development and promotion of
the establishment of district and village registry.
Achievements:
(i) A total of 14,436 land title deeds were prepared and issued in 2008. This
was facilitated by the establishment of Zonal Land Offices in Moshi,
Mwanza, Dodoma, Mbeya and Dar es Salaam;
(ii) Rehabilitation of 3 Districts Land Registry and 3 Villages Land Registry. In
addition, Land certificates for 714 Villages were issued;
(iii) Identification of potential areas for Land Bank in Handeni, Bagamoyo and
Mkuranga Districts; and
(iv) Establishment of District Land and Housing Tribunal in Maswa, Iramba
and Kondoa.
Challenges
(i) Meeting the growing demand of planned and surveyed plots for
settlement and land for large scale investments in farming;
(ii) Addressing land use disputes;
(iii) Establishing Mortgage Liquidity Facility; and
(iv) Speeding up the redevelopment schemes of various towns and upgrading
squatters.
ICT Infrastructure and Services
73. During the period under review, the Government in collaboration with the
private sector has continued to implement interventions to develop and expand
the national ICT infrastructure network, facilitate expansion of use and access of
ICT services across the country and link the country with neighboring countries
internationally.
40
Achievements
(i) Facilitated landing of SEACOM under sea Optical Fibre (OF) to link the
country with international ICT network – a number of source providers
have connected to the Fibre;
(ii) Completed first phase of optical Fibre network – Dar es Salaam and
border with Rwanda;
(iii) Facilitated increased and expanded use of mobile phones and mobile
phone services;
(iv) Implemented several interventions to increase access of ICT services in
rural areas including construction of telecentres and e-services at postal
offices in districts; and
(v) Initiated programme for geographical postal addressing system which will
facilitate e-based services.
Challenges
(i) The magnitude of resources required to cover the country with Optical
Fibre network;
(ii) Response and availability of private sector investors for last mile
connectivity of Optical Fibre; and
(iii) Huge resources and awareness input required to mobile participation of
local government and other stakeholders for graphical postal code
addressing system and tele-centres.
Science and Technology
74. The government has continued to implement various interventions geared
to increase the use of Science, Technology and Innovation (STI) in socio-
economic activities and develop the human resource capacity in STI.
41
Achievements
(i) Initiated major STI reform in the country construction and improvement
of poly technic and technology institutes including installation of super
computer at DIT and construction Nelson Mandela Africa Institute of
Science and Technology; and
(ii) Expanded enrolment for polytechnic qualifications and facilitated interest
for Science and Technology in Secondary Schools and Universities.
Challenges
(i) To bring awareness of Science, Technology and Innovation access the
population and in the different work places;
(ii) To fill the gap existing in the cadre with technical skills for STI
development in the country; and
(iii) Modernizing the STI infrastructure in R&D and Higher Learning
Institutions.
Cluster II: Improved Quality of Life and Social Wellbeing
75. The government in collaboration with stakeholders continued to
implement various programs and reforms across social sectors with the aim of
enhancing the quality of life and social wellbeing to its citizens. The social sectors
under this cluster include education, health and water. The achievements made
and challenges faced include the following:
Education
76. The focus was in implementing the major components of the Education
Sector Development Programme (ESDP). These are: Primary Education
Development Programme Phase II (PEDP II 2007-2011); Secondary Education
Development Programme (SEDP-2004-2009); Teacher Development and
Management Strategy (TDMS)-2007; Technical and Higher Education Sub Master
Plan 2003-2018; and Preparation of the second phase of SEDP.
42
Achievements:
(i) Increased enrolment of pre-primary schools pupils from 795,011(of which
438,025 are girls) in 2008 to 896,146 in 2009 (of which 450,279 are girls);
(ii) Increased enrolment of primary schools pupils from 8,410,094 (of which
4,148,263 are girls) in 2008 to 8,441,553 ( of which 4,192,789 are girls) in
2009;
(iii) Increased enrolment of form 1 students from 438,901 (252,116 boys and
186,785 girls) in 2008 to 524,784 (290,696 boys and 234,088 girls) in
2009 equal to an increase of 19.6 percent;
(iv) Enrolment in teachers‟ collages increased from 16,700 (of which 7,491 are
female) in 2008 to 21,709 (of which 9,300 are female) in 2009.
(v) Increased number of Government sponsored students from low-income
households from 174,946 in 2008 to 215,643 in 2009;
(vi) The number of girls accessing secondary education increased by 20
percent from 543,279 in 2008 to 653,457 in 2009 and the number of boys
too increased by 19.7 percent from 679,124 to 812,945 in 2009;
(vii) The number of student enrolled at higher learning institutions increased
from 82,508 in 2007/08 academic year to 95,525 in 2008/2009 academic
year. Out of these increased enrolment, 34 percent were females. The
increase in enrolment rate is partly attributable to expanded enrolment by
DODOMA University as well as increased infrastructure facilities in other
universities and colleges; and
(viii) The number of students accessing loans from the Higher Education
Student Loan Board (HESLB) increased from 55,687 in 2007/08 to 58,841
in 2008/2009 with the granted loans worth Tshs 112.5 billion and Tshs.
140.3 billion respectively.
43
Challenges
(i) Matching the increased enrolment with demand for teachers, and teaching
and learning facilities;
(ii) Improving the quality of education to enhance passing rate and
competitiveness for job market within the region;
(iii) Achieving equal deployment of human resources in underserved areas;
(iv) Meeting the educational needs of vulnerable children;
(v) Improving recovery rate of loans from HESLB beneficiaries; and
(vi) Attracting students to pursue fields of mathematics, science and
technology in secondary and tertiary education.
Health
77. Various interventions by Government and other actors continued to be
directed to improve the health sector, particularly in areas of health
infrastructure, control and treatment of diseases, by providing preventive
education to communities and medicines. Other efforts were geared towards the
control of malaria and infectious diseases such as tuberculosis and HIV and
AIDS.
78. Achievements: During the period under review the recorded
achievements in health sector include the following:
(i) Number of health facilities has increased from 4,984 in 2008 to 5,422 in
2009;
(ii) High technology equipment; Magnetic Resonance Imaging (MRI), new CT
Scan and equipment for Open Heart Surgery services has been installed at
Muhimbili National Hospital;
(iii) Enrollment of Pre service students in Health Training Institutions has
increased from 3,831 in 2008 to 4,147 in 2009;
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(iv) Employment of Human Resources for Health increased by 3,100 from
2008 to 2009;
(v) Vaccination services were provided as follows: 1,378,404 (88% of the
target) received Diptheria Pertusis Tetanus Hepatitis B (DPTHB);
1,321,429 (85%) received (DPTHB); and 1,368,700 (88%) received
measles vaccine;
(vi) A total of 2,879 service providers in the areas of safe child delivery, family
planning and reproductive health were trained in 2008/09 compared with
2,100 in 2007/08;
(vii) There has been significance decline in under five mortality rate from
112/1000 in 2004/05 to 91/1000 in 2007/08. Infant mortality rate declined
from 68 per 1000 live births in 2004/05 to 58 in 2007/08;
(viii) According to Tanzania HIV and Malaria Indicator Survey (THMIS) 2008,
HIV prevalence for ages 15-24 has decreased to 2.4 percent in 2007/08
from 3.5 percent in 2003/04;
(ix) Following the campaign on voluntary counseling and Testing, more than 6
million people were tested compared to 2 million before, and through
THMIS the prevalence of HIV infection has decreased from 7.7% to 5.7%
during the period under review, following the introduction of massive
preventive interventions;
(x) The number of pregnant women receiving ARV to prevent mother to child
transmission of HIV increased from 713,509 in December, 2007 to
958,103 by December, 2008;
(xi) Number of counseling centres increased from 515 in 2005/06 to 1,743 in
2008/09;
(xii) Number of patients on Anti-Retroviral Treatment increased from 145,000
in 2008 to 302,362 in 2009 which is over and above the target of 300,000
patients in need of the medicines;
(xiii) TB treatment success rate is 86% (recommended WHO target is 86%)
cure rate is 75%; and
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(xiv) Prevalence of Malaria has been decreased by 20% through use of Long
Lasting Insecticides Treated Nets that are distributed to all pregnant
women and under 5 children. Indoor residual spray, rapid test for
diagnosis and use of Artemisinin based Combination (ALU) in the
treatment of Malaria.
Challenges
(i) Scaling up of emergence obstetric and neonatal care services to all 578
Health Centre‟s;
(ii) Scale up of enrolment at Health Training Institutions from 4147 to the
planned annual target of 6450, in order to address 60% of Human
Resources existing gap within five years;
(iii) Improving referral system of medical cases especially transportation from
rural facilities to Hospitals at District and Regional Referral levels;
(iv) Ensuring the availability of adequate and good technology hospital
equipment, supplies including Medicine at all levels; and
(v) Improving services to the increasing number of vulnerable groups
including orphans, disabled and the elderly.
Water and Sanitation
79. During the year under review, the Government continued to implement
the Water Sector Development Program (WSDP).
Achievements:
(i) Increasing the overall water production for all urban water utilities to
202.34 million cubic metres in 2008/2009 compared to 197.8 million cubic
metres reported in 2007/2008;
(ii) Water supply coverage in urban areas increased from 79.9 percent in
2007/2008 to 84 percent in 2008/2009; which is equal to bringing service
coverage to additional 786,380 new beneficiaries in one year;
46
(iii) Proportion of the population with access to clean and safe water in rural
areas increased marginally from 57.1 percent in 2007/08 to 60.1 percent
in December 2009;
(iv) Construction of 2,470 water subprojects out of 2,936 planned for the
year;
(v) Coverage of sewerage facilities in urban centres increased from 17
percent in 2007/08 to 19 percent in 2008/09; and
(vi) Public sewer connection increased from 30,474 sewer customers in
2007/08 to 35,645 sewer customers in 2008/09.
Challenges
(i) Increasing access of clean and safe water supply coverage to majority of
the population;
(ii) Collaborating with various stakeholders to operationalise and strengthen
the new monitoring framework for accuracy of data and information;
(iii) Provision and maintenance of sewerage treatment facilities.
Natural Resources and Tourism
80. The Government has continued to implement various interventions to
ensure effective management of natural resources and also creating credible
tourist environment in the country.
Achievements:
(i) 30,566 patrol man days were conducted in and outside Game Reserves
resulting into arresting of 896 wildlife offenders and filing 462 cases in
Courts;
(ii) Printed and distributed 2000 copies of newsletter of First Edition of
Maliasili Newsletter for promotion of tourism industry, prepared and aired
47
Conservation Radio Programmes about awareness of wildlife conservation
to the Society especially on wildlife utilization; and
(iii) Conducted International Visitors' Exit Survey in four (4) major entry/exit
points at Tunduma and Kasumulo points, identifying areas for establishing
projects on cultural tourism in Lindi, Mtwara, Ruvuma and Iringa regions,
beach plots in Temeke District and Tourist attraction in Bagamoyo District.
Challenges
(i) Ensuring sustainable management of natural and cultural resources at all
levels;
(ii) Enhancing human capacity to effectively manage and develop natural and
cultural resources; and
(iii) Improving tourist and cultural infrastructure.
Cluster III: Governance and Accountability
81. Good governance and accountability of resources are essential
preconditions for sustainable development. The governance and accountability
focuses on the rule of law, accountability of leaders and public servants,
deepened democracy, political and social tolerance and sustainable peace,
political stability, national unit and social cohesion. During the period under
review the following achievements and challenges were registered.
82. Achievements:
(i) Physical verification of Assets and Liabilities for 373 Public Leaders was
conducted;
(ii) Improved capacity at regional and district prosecution offices throughout
the country by employing 204 State Attorneys;
(iii) 150 Officers Commanding Districts (OCDs) were trained in modern
investigation skills and other 140 officers were trained on Human Rights
observance and Good Governance;
48
(iv) The 2008 CAG report indicate improvements of financial management
and accountability as evidenced by increased unqualified certificates and
declined in qualified opinion;
(v) PCCB received and investigated 2,887 reported corruption related cases
and completed the investigation for 1,009 cases;
(vi) The Government has introduced 30 minutes for MPs direct questions to
the Prime Minister during the Parliamentary Session, from January–August
2009, the Prime Minister has answered 155 questions focusing on good
governance, rural development, poverty reduction, Union matters, social
and economic related issues and international relations; and
(vii) Free, fair and democratic Local Government election was conducted in
132 LGAs in October, 2009.
Challenges
(i) Enhance capacity for improving governance and accountability at all
levels;
(ii) Reducing the backlog of court cases at all levels;
(iii) Ensuring adherence to the rule of law and ethics; and
(iv) Need to further strengthened engagement of Non State Actors in
Government dialogue structure.
Millennium Development Goals
83. Tanzania subscribes to the Millennium Development Goals (MDGs) as a
compact that addresses an expanded vision of poverty reduction and pro-poor
growth to improve human development. Tracking of progress on MDGs has been
undertaken through Millennium Development Goals Reports. The recent report
revealed that Tanzania is on track in meeting most MDGs. However, additional
resources to bridge the financing gap will greatly help in consolidating
achievements in MDGs showing progress and addressing challenges in the few
MDGs where prospects for achievement are threatened.
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84. Successful stories have been observed in attaining targets of universal
primary education whereby Tanzania has been a role model in enrolment of
primary education pupils. In addition, women participation in various managerial
and decision making levels has significantly increased, with around 30 percent of
women parliamentarians. Furthermore, notable progress has been made in
environmental conservation.
85. Tanzania is determined to achieve the MDGs by the year 2015. However,
given her level of poverty, additional resources would be required to complement
existing efforts. A number of reforms that have been implemented in the public
sector have improved both resource utilization and accountability. Invariably
then, any additional resources will be effectively utilized in order to yield the
desired impact. Table 2.1 summarises the progress achieved so far.
Table 2.1: Progress in Millennium Development Goals
MDG 1990
(MDG baseline)
2007 2010 2015 (MDG Target) Actual Expected* Required*
Proportion of population below basic needs poverty line
39 33.4 25.7 23.4 19.5
Proportion of population below food poverty line
22 16.5 14.5 13.2 11
Under-5 Underweight (%) 28.8 21.9 18.7 17.3 14.4
Under-5 Stunted (%) 46.6 21.9 30.7 27.9 23.3
Primary school net enrolment rate 54.2 97.3 85.4 90.8 100
Under-five mortality rate (per 1,000 live births)
191 112 104.6 89.4 64
Infant mortality rate (per 1,000 live births)
115 68 62.6 53.4 38
Maternal Mortality Rate (per 100,000 live births)
529 578 259.7 212.2 133
Births attended by skilled health personnel (%)
43.9 62 75.5 80.8 90
Access to potable water :% of rural population
52 55.7 67 69.6 74
Access to potable water :% of urban population
68 83 78.9 80.8 84
Note: * Computed as % of passage time from 1990 to 2015 (2007 = 68%; 2010 = 80%)
Source: URT 2008: MDG Progress Report
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Cross Cutting Issues
General Elections
86. The General Elections will be held in October 2010. In preparation for the
elections, the following measures have continued to be undertaken:
(i) Updating the Permanent National Voter Register;
(ii) Review of the Legal Framework for the elections and translating the
electoral legislations from English to Kiswahili language;
(iii) Voter Education Programme and engagement with other stakeholders;
(iv) Initiating review of boundaries and demarcation of constituencies;
(v) Procurement of extra ballot boxes, seals and result forms;
(vi) Updating of ICT system for election purposes; and
(vii) Capacity building to the media and other key stakeholders.
87. Regions and LGAs are among key stakeholders to ensure smooth carrying
out the forthcoming General Election. LGAs are specifically directed to identify
ward boundaries and communicate with NEC and make such other preparations
as will contribute to successful General Elections.
HIV and AIDS
88. According to Tanzania HIV/AIDS and Malaria Indicator Survey 2008, the
HIV/AIDS situation estimate shows that there is slightly declining trend of HIV
and AIDS prevalence among the productive segment of the population. The rates
are higher among females with 6.8 percent as compared to 4.7 percent for
males. The findings also show that there is variations in HIV Prevalence among
regions, the highest prevalence regions are: Iringa (14. 7 percent), Dar es
Salaam (8.9 percent); Mbeya (7.9 percent), Shinyanga (7.6 percent), Mara (5.3
percent) and Pwani (5.3 percent). Regions with the lowest prevalence are
Kigoma, Manyara and Arusha.
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Achievements:
(i) Launching of the Second National Multi-Sectoral Strategic Framework on
HIV and AIDS 2008 -2012 in 2008;
(ii) Increasing number of people living with HIV under treatment from 69,250
in 2007 to 193,978 in 2008; and
(iii) Launching of the National Plan of Action for Most Vulnerable Children
(MVC) and the National Guidelines for Identification of Most Vulnerable
Children on 18th February, 2008.
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Challenges:
(i) Coordination among stakeholders involved in HIV and AIDS at district
level;
(ii) Increasing stigma and discrimination to people living with HIV and AIDS;
(iii) Managing the increasing number of HIV and AIDS orphans;
(iv) Promoting voluntary counselling and testing; and
(v) Sustaining increasing demand for care and treatment services, drugs,
nutrition and related services to people living with HIV and AIDS.
Gender
89. During the period under review, the government continued to implement
interventions addressing the major objective regarding gender in order to
achieve equality of human rights and peace. Focus was on the five broad based
critical areas namely:
(i) Enhancement of women‟s legal capacity to address human rights violation
including domestic violence and sexual abuse issues;
(ii) Economic empowerment of women to reduce poverty;
(iii) Women‟s political empowerment and encouraging them to participate
effectively in decision making;
(iv) Reducing gender imbalances by increasing access to higher education and
discipline specialization; and
(v) Improving collection and analyzing of gender disaggregated data.
Achievements:
(i) The establishment of Tanzania Women Bank with initial capital of Tshs.
2.9 billion;
(ii) Increased number of women who continue to access credits from
SACCOS and other micro-finance institutions;
(iii) Increased women enrolment into higher education from 30.7 percent
in 2007/08 to 34.2 percent in 2008/09;
(iv) Child Policy in place and enactment of the Child Act, 2009; and
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(v) Appointment of Seven (7) Women Judges out of 12 Judges.
Challenges
(i) Addressing gender imbalances at all levels to reach 50:50;
(ii) Mainstreaming gender issues in sector policies, strategies, plans and
budget at all levels;
(iii) Reaching Non SACCOS Women Members to access credits;
(iv) Availability of effective and sustainable law enforcing mechanism to
ensure full protection of human right of women; and
(v) Accessing information and technology by majority of women especially
those in the rural areas.
Environment
90. During the period under review the Government continued to implement
policies, strategies, rules and regulations aiming at sustainable use of
environment. Specific achievements include:
Achievements:
(i) The first report of the State of the Environment was issued and
disseminated to various stakeholders;
(ii) Environment Management Regulations were developed, operationalised
and distributed to various stakeholders;
(iii) Bio-safety Guidelines were prepared, disseminated and operationalised for
increasing understanding on the procedures for handling Genetically
Modified Organisms (GMO);
(iv) Guidelines for mainstreaming Environmental issues into Sectors and LGAs
have been prepared, for improving planning and management of
environment at sector and local level;
(v) Fourteen sector ministries and all LGAs established sector environmental
sections and coordinators
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(vi) A total of 150 refrigeration technicians and 110 environmental
coordinators were trained on good refrigeration practice and regulations
on Ozone Depleting Substances;
(vii) Awareness materials on Multilateral Environmental Agreements (MEAs)
were prepared and disseminated to stakeholders;
(viii) A National BIO-safety Committee was established and operationalised;
(ix) The Strategies on Urgent Actions on Land Degradation and Water
Catchments and Strategy on Conservation of Marine, Coastal environment,
Lakes, Rivers, and dams environment were developed and are being
implemented; and
(x) A national program on sustainable production and consumption was
prepared and it is in use for minimizing waste production and enhances
recycling various products.
Challenges
(i) Controlling increased land degradation, deforestation; bush fire and loss
of wildlife and habitats;
(ii) Controlling increased air and water pollution and aquatic systems;
(iii) Creating awareness to the public on the importance of environment
protection and conservation; and
(iv) Controlling disposal of plastic materials especially in urban areas.
Population and development
91. High population growth rate is a development challenge for Tanzania. The
Government is in the process of conducting the Population and Housing Census;
scheduled to take place in August 2012. As a step towards undertaking the
Census, the major task ahead is the demarcation of enumeration areas to be
carried out countrywide. In addition, the government continues to implement
various population related policies, programmes and projects, including the
National Population Policy and its plan of implementation.
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Achievements:
(i) Completion of demarcation of enumeration areas (EAs) in 4 regions (2
from Mainland and 2 from Zanzibar); and
(ii) Completion of the study on the interrelationships between population
growth and development.
Challenges
(i) Matching population growth rate with the provision of social services and
economic growth rate;
(ii) Scaling up demarcation of enumeration areas;
(iii) Accelerating current efforts to provide family planning related services;
and
(iv) Linking family planning with HIV prevention efforts including clear
strategies on dual protection.
Social Protection
92. Social protection is a mechanism to effectively address poverty reduction
and social exclusion as propounded by Vision 2025, MKUKUTA and sectoral
policies and strategies in response to commitments on poverty reduction,
vulnerability and improve interventions that are aimed at supporting their
livelihoods. It is also a response to meet international social and economic
development commitments such as the MDGs.
Achievements:
(i) In implementing of the National Action Plan on Care Services, Training
and protection of Vulnerable Children, a total of 611,150 vulnerable
children were identified in 81 Councils, of which 317,798 were boys and
293,352 were girls in 2008/09;
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(ii) A total of 561,823 vulnerable children were provided with basic services
including health, food, shelter, school needs, psychological and legal
services in 2008/09; and
(iii) Enactment of new laws: Social Security Regulator Authority Act 2008 with
its regulations and Guideline of 2009 and the Workers Compensation Act,
2008.
Challenges
(i) Increasing number of vulnerable groups due to economic and social
problems and the impact of HIV/AIDS;
(ii) Fragmentation and lack of coordination whereby each social security
schemes reports to a different Ministry with different operational rules and
procedures;
(iii) Inadequate of benefits paid in the sense of quantity, quality and
indexation whereas most benefits fall below the ILO minimum standards;
(iv) Reduced access to social services: cost sharing in the provision services
has reduces the capacity of people to access the services; and
(v) Good governance that would ensure smooth functioning and efficiency in
all social security schemes.
Employment and Economic Empowerment
93. From 2007, the government continued to implement the National
Employment Creation Program which was launched in 2006. The Program aimed
at creating over one million jobs by 2010. To support the implementation of the
program, the government approved the Youth Development Policy in 2007 and
the new Employment Policy in 2008.
Achievements:
(i) As of December, 2008, about 1,271,923 new jobs were created in
different sectors as follows: Government 85,571 jobs; government
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institutions 965 jobs and private sector 1,185,387 jobs. The private
sector leads in creation of employment by 93.2 percent;
(ii) The Government established Tanzania Employment Services Agency
(TaESA) in July, 2007, to provide employment services by linking job
seekers to employers both locally and internationally; and
(iii) The Government has also continued to implement the National
Economic Empowerment Policy in terms of provision of loans,
formation of cooperatives including youth and women economic
groups;
Challenges
(i) Mainstreaming employment and youth development issues in planning,
Budgeting and other development agenda at all levels;
(ii) Improving collection and analysis of employment disaggregated data;
(iii) Creating awareness to the public on the importance of the youth
employment at all levels;
(iv) Operationalization of district employment committees
(v) Promoting youth employment at all levels; and
(vi) Facilitation of Labour migration and its management to attract Tanzanian
diasporas remittances and their skills.
National Identity Project
94. National Identification aims at managing the provision of individual
identity information Register, information sharing and secure National ID
Register to Tanzanian citizens and eligible non-citizens. During the period under
review, the National Identification Authority has been established through G.N.
No. 122 of 2008.
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95. Achievements: During the period under review the CEO was appointed
and recruitment of key staff is on course. Milestones registered at different levels
of implementation include: establishment of technical infrastructure namely web
enabled customer service system; data collection system of birth, death and
marriage registration system; instituting ICT security and maintenance
standards; and establishing an interfacing among government major systems
such as passport, driving licence, visa, tax payer identification numbers and
procurement of contractor to implement a project is in progress.
Challenges
(i) Coordination and harmonization various identification and registration
processes in the country;
(ii) Timely completion of tendering process of National Identification System ;
and
(iii) Creating public Awareness on the Concept of National Identification
System.
Export Processing Zones (EPZ) and Special Economic Zone (SEZ)
96. Achievements: During the period under review, the following specific
achievements have been recorded:
(i) A total of 28 EPZ investments were registered of which 19 are operational,
6 are under construction;
(ii) Four EPZ industrial parks were licensed; including Millennium Business
Park in Dar es Salaam (23 Acres); Hifadhi EPZ in Dar es Salaam (20
Acres); Kisongo EPZ in Arusha (70 Acres) and Kamal Industrial Estate I
Bagamoyo (300 Acres);
(iii) The total capital invested is US$ 210 million, and the total value of
exported goods is US$ 120 million;
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(iv) Employment of 7,500 was created as direct labour and 20,000 as indirect
labour;
(v) Large areas for EPZ/SEZ development land for EPZ and SEZ has been
been acquired in Manyara, Kigoma and Mtwara;
(vi) Benjamin William Mkapa Special Economic Zone (BWM – SEZ) attracted a
total of 32 applications for industrial plots. Out of the 32 applications, 11
have met laid down eligibility criteria and have been allocated plots
covering a total area of 109,655m2.
Challenges
(i) Inadequate physical infrastructure or Industrial Parks;
(ii) Inadequate financial resources for land compensation; infrastructure
development and EPZA‟s operational activities;
(iii) Inconsistent supply of utilities;
(iv) Delays for importation of raw materials and capital goods due to
congestion at the Dar es Salaam port;
(v) Limited capacity of skilled labour force
(vi) Little public awareness of the EPZ scheme;
(vii) Delays of clearance of EPZ goods; issuing of work permits and issuing of
entitled incentives and tax refunds; and
(viii) Slow progress of SEZ scheme due to absent of SEZ Authority and
regulations.
Business and Property Formalization Programme
97. Achievements: During the period under review the Government has
continued with efforts of formalizing land ownership to enable land use for
business and economic purposes. Specific achievement include: a total of 12,795
farms were surveyed in the following districts council: Musoma Rural (1,636);
Serengeti (581); Makete (960); Njombe (811); Mpwapwa (1,277); Rufiji (2,465);
Nachingwea (1,628); Manyoni (1,160); Mvomero (1,347); and Wete (930).
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Challenges
(i) Enhancing capacity of the Local Government Authorities to sustainably
implement Business and Property Formalization Programme;
(ii) Speeding up mainstreaming of Program objectives and Action Plans i
Speeding up mainstreaming of Program objectives and Action Plans in the
sectoral ministries; and
(iii) Enhancing access to financial services in the rural areas
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CHAPTER THREE
SPECIFIC ISSUES FOR REGIONS AND LOCAL GOVERNMENT
Introduction
98. Regions and Local Government Authorities have specific roles and
responsibilities to perform for the purpose of bringing about development and
improving service delivery in their respective areas of jurisdiction. These two
levels of administration have specific objectives as summarized below.
99. Regions: As part of the Central Government, the Regions are
responsible for securing the maintenance of law and order and determining the
specific direction of efforts in implementing the policies of the Government
including attainment of national standards and quality assurance in the delivery
of public goods and services. The role of Regional Administration is to facilitate
and assist the local government authorities in the region in undertaking and
discharging their responsibilities by providing and securing the enabling
environment for them to successfully perform their duties and functions.
100. Local Government Authorities, on the other hand, are charged with the
following responsibilities:
(i) to maintain and facilitate the maintenance of peace, order and good
government within their areas of jurisdiction;
(ii) to promote the social and economic well-being of all the people within
their areas of jurisdiction; and
(iii) to further the social and economic development of their areas of
jurisdiction subject to the national policies and plans for rural and urban
development.
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101. This Chapter is meant to provide a review of the performance of Regions
and Local Government Authorities during the period under review. In doing so,
the achievements registered during the period and the challenges met by each
level of administration are summarized. The Chapter concludes also includes
instructions to Regions and LGAs to clearly state and submit their annual targets
in respect of the implementation of Kilimo Kwanza for the next medium term.
Regional administration
102. During the period under review, Regions continued to maintain peace,
order and tranquility as well as coordinating and backstopping LGAs to attain
social and economic development. Achievements during the period include:-
(i) Improving working environment through construction and rehabilitation of
17 Regional Administration blocks, 26 District Commissioners‟ offices as
well as 32 residences for RCs and DCs;
(ii) Facilitating improvement of health services through construction of
Regional Hospitals in Singida, Manyara and Mbeya regions, rehabilitation
of regional Hospitals of Arusha, Morogoro, Kilimanjaro, Shinyanga,
Kigoma, Rukwa, Tabora, Dodoma and Mwanza regions and expansion of
Tumbi Hospital at Kibaha Education Centre which serves also as Regional
Hospital for Coast Region;
(iii) Enhancing transparency and participation of stakeholders in the
development process at the local level by facilitating Regional Consultative
Committees (RCCs), District Consultative Committees (DCCs) and Inter
Council Forums meetings;
(iv) Providing technical advice and conduct quarterly monitoring and
evaluation on the implementation of activities in LGAs; and
(v) Coordinating the process of grassroots leaders‟ elections in 132 LGAs
which was conducted in October 2009.
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Local government
103. Following are achievements which were registered by Local Government
Authorities (LGAs) during the period under review:-
(i) 132 District Secondary Schools Education Officers and 132 District
Academic Officers were appointed and attended orientation courses for
their newly appointed posts;
(ii) All 264 District Education and Academic Officers were provided with
working tools;
(iii) Guidelines for supervision and implementation of secondary schools have
been prepared, issued and are in use;
(iv) Councils Plans were prepared using O & OD approach which have been
rolled in 105 LGAs;
(v) Tshs. 70.1 billion was allocated to LGAs for implementation of projects in
education, water, agriculture and health sectors. Some of the projects
which have been implemented include rehabilitation and construction of
secondary schools‟ classrooms, teachers‟ houses, administration blocks
and laboratories, health centres, dispensaries, irrigation projects and
formation of farmers‟ groups in 132 LGAs. This is in line with 2005 CCM
General Elections Manifesto;
(vi) Routine maintenance have been done for 10,901 kilometres, spot
improvement done to 2,045 kilometres and periodic maintenance
conducted to 536 kilometres;
(vii) Continued with interventions against HIV and AIDS pandemic including
improved health care, support and treatment for PLWHA, increased
number of people undergoing voluntary testing and counselling and
acquisition and distribution of testing kits;
(viii) Training on International Public Sector Accounting Standard (IPSAS) to all
Councils‟ Treasurers, Internal Auditors, Accountants dealing with final
accounts and 17 Internal Auditors from Regions has been conducted;
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(ix) Increased own source revenue collection from TShs. 61.4 billion in
2007/08 to TShs. 100.6 billion in 2008/09 which is equivalent to 92% of
the 2008/09 estimates. To a large extent this has increased contributions
of the LGAs in development projects and day to day operations of the
LGAs;
(x) Continued with construction of 32 offices of Members of Parliament, 12
new Council headquarters and 80 staff quarters which started in
2008/2009 financial year;
(xi) Conducted Grassroots Elections for Civic leaders in October 2009 for which
17 registered political parties participated whereupon 284,499 seats were
contested; and
(xii) Training of staff/officers from 9 LGAs on the implementation of the
National Strategy on Crime Prevention under the key functions of the
maintenance of peace, order and good governance.
Challenges Facing Regional Administration and Local Government
104. The following are the major challenges facing Regional Administration and
Local Government plans and budgets:-
(i) Inadequate number of qualified staff at RAs level to support LGAs;
(ii) Securing adequate number of primary and secondary school teachers and
health staff;
(iii) Meeting the requirements for infrastructure in primary and secondary
schools as well as in health facilities;
(iv) Lack of communication strategy between LGAs, PMORALG and Sector
Ministries;
(v) untimely and inaccurate reports submitted to higher authorities
(PMORALG, MoFEA and other sectoral Ministries);
(vi) Attracting and retaining qualified personnel in underserved areas;
(vii) Harmonizing and rationalizing funding modalities to LGAs;
(viii) Creating capacity to comply with the requirements of the Public
Procurement Act No 21 of 2004 and Regulations;
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(ix) Attracting qualified contractors in some areas particularly in road sector;
(x) Accessing timely foreign funds for implementation of development
projects in LGAs;
(xi) Instilling budgetary discipline among Council leaders and staff in order to
minimize reallocations; and
(xii) Mobilizing revenue from Councils‟ own sources.
Medium Term Focus for FY 2010/11 – 2012/13
Regional administration
105. For the past five years, major development projects undertaken at
regional level included mainly construction of offices and residences or
rehabilitation of the same. Experience has shown that most of these projects are
implemented at a longer period than the initial period. This is due to the fact that
new projects are established before completion of the ongoing ones. This has
resulted to thin-spreading of meager resources to many projects which impliedly
shows that there is lack of prioritization during the planning process. In this
regard, priority areas during the medium term plan will include the following:-
(i) Coordinating interventions aimed at successful implementation of “Kilimo
Kwanza” in the regions including establishment of agro-mechanization
centres and agro-processing small scale industries;
(ii) Completing ongoing projects especially Regional blocks, District
Commissioners Offices, Regional hospitals and District Commissioners
residences;
(iii) Developing proposals on Regional Integrated Development Programmes;
(iv) Facilitate preparation for 2010 General Elections; and
(v) Facilitate improvement and expansion of rural roads network.
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Local Government
106. During the Medium Term Plan and Budget, the principle of discretionary
allocation of resources to development projects will still prevail. LGAs are urged
to focus on few priority areas which have quick wins. In order to abide with
other National Policies, priority areas will also include:-
(i) Facilitating establishing small scale industries in the context of “Kilimo
Kwanza” including infrastructure for livestock development and
distribution of farm implements;
(ii) Improving and expanding Districts‟ roads network (Urban and Rural
LGAs);
(iii) Completing ongoing projects;
(iv) Constructing secondary school infrastructure eg. Hostels and laboratories,
coordinate secondary school education activities at LGAs level and
implement new curriculum;
(v) Preparation of land use plans which among other things, will contribute to
reduction of conflicts between livestock keepers and farmers;
(vi) Improvement of Dar es Salaam City and Dodoma Municipal infrastructures
such as ring roads, sewerage system, street lights and parking;
(vii) Management of Constituency Development Catalyst Fund (CDCF);
(viii) Rolling out of O&OD in the remaining 27 LGAs;
(ix) Rehabilitation of existing health facilities as part of implementing Primary
Health Services Development Program (PHSDP);
(x) Strengthening Monitoring and Evaluation at all levels;
(xi) Reviewing, evaluating and strengthening LGAs own sources of revenue;
and
(xii) Strengthening law and order through implementation of the national
strategy for crime prevention which was launched by the Government in
2008.
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Kilimo Kwanza
107. Regions and LGAs have a specific role in successful implementation of the
interventions under Kilimo Kwanza. The Government has, effective from
2009/10, provided resources with which agricultural inputs will be provided.
These efforts will be continued into the next medium term. LGAs are particularly
called upon to invoke the bottom-up participatory planning approach so that
production targets can be set for each Kitongoji, each Village and thus
consolidate the projected production for the entire area under the LGA‟s
jurisdiction. Each LGA should mobilize its residents so as to ensure that they
produce enough food for themselves as well as producing surplus food crops
and bumper non-food cash crops for sale. The RSs should consolidate those
targets into regional targets and submit them to PMO-RALG and MAFSC for
further consolidation into national targets. Those targets will then be used for
monitoring annual performance during the medium term. The plans and budgets
of Regions and LGAs for the year 2010/11 and thereafter should reflect how
individual Regions and LGAs are poised to make Kilimo Kwanza a success.
BEST Implementation at LGAs level-Doing Business
108. LGAs are supposed to play a crucial role in facilitating doing business in
their areas of jurisdiction. Hitherto, however, the LGAs have insisted on
unnecessary regulatory and administrative constraints which have only served to
frustrate the private sector in undertaking business ventures in the country.
109. Regions and LGAs are hereby called upon to address the cumbersome
procedures in the issuance of business licences and related permits which clearly
inhibit doing business thus failing to attract both local and foreign investments.
PMO-RALG and other stakeholders should seriously review the relevant laws and
regulations with a view to relieving Council Committees of the burden of
undertaking technical responsibilities such as scrutinizing and approving building
permits for which they are not competent so that such tasks are entirely left to
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the relevant technical staff who should be held fully responsible for their deeds
or misdeeds.
Planning and Budget Process for Local Government
Budget preparation and submission;
110. Budget preparation at Local Government Authorities will continue to be
guided by Opportunities and Obstacles to Development (O&OD) participatory
planning methodology. Through this methodology, communities will come up
with plans and budgets for their villages and Mitaa. Higher level local
government authorities will compile wards‟ plans and advice accordingly. Lower
Level Local Government Authorities (LLLGAs) plans have two components.
Component one comprises activities that can be financed by the communities
themselves and component two comprises activities that need assistance. The
later is used as inputs during the preparation of higher level local government
authorities‟ strategic plans and budget. LGAs will prepare MTEF document and
discuss their budget through statutory Committees. Regions through Inter
Council forums should become effective in terms of scrutinising LGAs plans and
budget so as to ensure compliance with National policies before Full Council
meetings. Regional budgets will be scrutinized to assess adherence to these
guidelines, alignment and inclusion of all necessary requirements by the team
comprising of staff from PMO-RALG, PO-PSM and MoFEA. Budget preparation will
be guided by institutional ceilings as no funds will be allocated outside ceiling
provided.
Budget Execution Stage
111. LGAs are obliged to prepare realistic action plans, procurement plans and
projected cash flow requirements for the financial year. The action plan should
include uncompleted activities and unutilized funds from the previous year
according to approved budget. Budget executions should commence with
outstanding balances carried forward from the previous financial year and
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proceed with own source revenues as well as intergovernmental transfers and
subventions allocated for the new financial year.
Budget Monitoring, Evaluation and Reporting
112. RAs and LGAs are encouraged to form joint teams for monitoring and
evaluation. Whenever RAs are conducting monitoring at LGAs, the joint team
should draw members from all sectors. This will also apply for LGAs when they
are conducting M&E at lower level local government authorities. Such practice
will help to cut down costs and also will enhance building common
understanding. RAs should monitor all funds disbursed to LGAs while LGAs
should monitor all funds disbursed to lower levels local government authorities.
Reports should be prepared quarterly, semi annual and annual as instructed in
the Medium Term Strategic Planning, Budgeting and Reporting Manual
(MTSPBM). LGAs are urged to prepare timely and quality reports which adhere to
format provided and submit them to the various levels of the Government for
decision making and actions.
113. Following the introduction of Milestone Assessment Framework (MAF),
RAs and LGAs are urged to carry out evaluation of their performance to assess
the level of achievement in terms of outcome and impact. They are required to
report on its budget outcomes and performance by using the standard formats
provided both in the Planning and Budgeting Guidelines Part Two (PBG – Part II)
as well as the MTSPBM. Annual Performance Reports and Three-Year Outcome
reports should be made available to stakeholders including the general public
within 90 days after completion of the particular financial year. This is intended
to enhance good governance through transparency, accountability and
ownership by key stakeholders.
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Main Functions of Council Organs
114. Councils‟ day to day operations are vested on Councilors and Executives.
Permanent standing Committees which are formed by Councilors will always
oversee execution of Council‟s plans and budget and reports will be tabled before
the Full Council. Council Management Team (CMT) which is formed by the
Director and Heads of Departments, continue to be an important organ in the
LGAs plans and budget preparation, execution and reporting process. It is this
team which forms the Council Planning and budgeting committee. This
Committee among other things performs the following:-
(i) To review plans and budget performance of the last and current financial
years for both recurrent and development budgets;
(ii) To interpret national policy in council‟s environment, giving clear guidance
on councils‟ priorities and supervising the preparation of the plan and
budget process;
(iii) To advise Councillors on realistic budgeting that matches resources
availability and expected outputs;
(iv) To draw up programme for budget preparation, scrutinisation and
rationalization;
(v) To compile and finalizing LGA‟s MTEF by ensuring that departmental
budgets‟ are consistent with council priorities and ceiling, and integrating
the revenue budget with both recurrent and development budgets;
(vi) To ensure that all revenues collectable under Section 6 of the Local
Government Finances Act (Cap 290), are collected and accounted for; and
(vii) To carry out the execution, performance monitoring and reporting on
Councils‟ plan and budget.
115. During the medium term, Regions and LGAs will receive financial
resources from the Treasury to facilitate implementation of priority activities for
Recurrent and Development budgets. The Government will continue to allocate
resources using the Strategic Budget Allocation System (SBAS) for Regions and
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OC and development funds will be allocated on formula basis for LGAs. The grant
allocation plus estimated revenue from own sources will constitute the resource
envelopes for LGAs. The use of formula in allocating grants to LGAs enhances
predictability, stability and transparency in LGAs budget allocations and
engenders more effective and accountable financial planning and budgeting.
Revenue from Own Sources
116. Following Government‟s commitment in providing improved social and
economic services, LGAs need to scale up revenue collection efforts and
effectively participate in co-funding of development projects that will receive
funding from government subventions. During 2009/10, the approved budget
for all LGAs‟ own source revenue was Tshs. 138.1 billion and the revenue
projection for 2010/11 is Tshs. 158.8 billion.
Table 3.1 depicts Council’s Own Revenues for the period 2006/07 – 2008/09-amount in Million Tshs
Year Number of Councils
Estimates Actual %
2006/07 122 63,385.0 61,411.1 97
2007/08 133 80,137.3 79,770.3 100
2008/09 133 109,258.0 100.659.0 92
GRAND TOTAL 252,780.3 241,840.4 96
Performance:
For the period July 2006/07 to 2008/09, actual collections from Council‟s own
sources amounted to Tshs 241,840.4 against the target of Tshs 252,780.3
reflecting performance rate of 96%.
117. In the process of setting revenue targets in the year 2010/11, LGAs
should seek to systematically review and evaluate actual and potential own
sources of revenues. The findings observed should serve as a baseline in
strengthening the sources, establishing a realistic future focus that will lead to
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maximum utilisation of Councils revenue base. All LGAs are urged to identify
more revenue sources within the closed list of revenue sources and enforce
bylaws that are in place for effective collection of the same, and if need be,
enact new by-laws.
Intergovernmental Fiscal Transfers
118. During the period under review, inter-governmental transfers have been
playing a critical role in the system of transfer of public finance from the Central
Government to LGAs. In the medium term 2010/11 - 2012/13, LGAs will continue
to receive funds direct from the Central Government, while Regions will receive
the release warrant and exchequer issue notification of the same for information,
coordination and accounting purposes. The Intergovernmental transfers will
therefore cover the recurrent block grants (PE and OC) and development
subventions (Local and Foreign Grants).
119. Following the implementation of D by D policy, a number of functions
have been devolved to LGAs and the respective budgets have been transferred
direct to relevant points of implementation. Likewise, higher level of LGAs are
obliged to transfer internally the funds allocated for implementation of activities
at lower levels (Wards, Villages/Mitaa and Vitongoji) to enable effective
governance and accountability at all levels. Notwithstanding of D by D policy,
Government subventions for implementation of activities and projects under
vertical programmes will continue to be channeled through respective MDAs
while efforts are made to finally make implementation of such activities and
projects more D by D compliant.
Recurrent Block Grants
120. During the medium term, LGAs will continue to receive recurrent block
grants for implementing planned local activities in all departments as will be
guided by resource envelope and as passed by the Full Council and finally
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approved by the Parliament. In this context, recurrent block grants will be
provided to LGAs in the form of Personal Emoluments (PE) and Other Charges
(OC). The PE budget will be allocated based on approved establishment while
OC budget will be determined by using formulae whose variables reflect service
delivery need indicators such as population, number of school aged children,
poverty, geographic size and other social-economic indicators. The table below
shows a summary of the recurrent block grant formulae that will continue to be
used for allocation of resources in the year 2010/11 - 2012/13.
Table 3.2: Formula for allocating Block Grants for PE and OC
No. Sector Formulae/Variable Applicable
1. Primary Education Number of school-aged children 100%
2. Secondary Education Number of enrolled students (day
andboarding) 100%
3. Health Services Total population: 70%
Number of poor residents: 10%
District Medical Vehicle route: 10%
Under-five mortality: 10%
4. Agriculture Extension Number of villages: 80%
Rural population: 10%
Rainfall index: 10%
5. Water Services Number of unserved rural residents: 90%
Equal shares: 10%
6. Local Roads Road Network length: 75%
Land area (cropped): 15%
Number of poor residents: 10%
7. General Purpose Grant Total Population: 50%
Total Number of rural residents: 30%
Fixed Lump Sum: 10%
Total Number of Villages: 10%
8. Personal Emoluments Number of existing employees in the payroll
Number of existing employees not in payroll
Number of employees to be recruited.
121. Councils are responsible for determining the allocation of resources of
each grant within the formula-based ceilings allocated to them, recognizing
expenditure commitments and the needs of each sector. As a result, all existing
and any new posts in the council‟s budget must be fully fundable within the LGA
budget constraints.
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122. LGAs should prepare the personal emoluments (PE) budget based on
identified actual strengths and manning level required to perform the functions
as set in the strategic plan, within the budgetary ceilings. Each LGA should
prepare the PE and OC budget, forming the recurrent budget which along with
the development budget section will complete the MTEF document to be
submitted to MoFEA for scrutinisation, consolidation and finally progressed for
approval by the Parliament.
123. In budgeting for existing commitments for PE, Councils should take
existing payroll figures including Employer‟s contribution to the respective
pension funds and other statutory contributions. The amounts to be released for
PE will be subject to the approved budget and monthly payroll printouts sent to
respective LGA.
124. Underserved areas: These are areas which do not attract qualified staff
due to factors such as absence of basic facilities including staff houses and other
infrastructure facilities, remoteness (geographical location and setting) culture
etc. This has resulted into low quality or inadequate services delivered by various
sectors to the communities in some parts of the country. To address this, during
financial year 2009/2010 the Government allocated funds for purchasing boats in
delta islands and islands, generators, solar panels, construction of hostels in
pastoral and nomadic areas etc. Meanwhile, efforts are being made to connect
hard to reach areas with the rest of the country to ensure accessibility
throughout the country. Ongoing development projects being implemented in
underserved areas are fully funded. During Medium term focus, the Government
will continue to fund other identified and economically viable projects in these
areas and ensure that they are completed in time, preferably within one financial
year. Meanwhile, Public Service pay and Incentive Policy which will include
attracting and retaining technical staff in LGAs employed will be developed by
the Government.
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125. Staff identified for transfer as part of the Council restructuring process,
should be budgeted for in the council in which they are currently employed,
unless their transfer has been agreed and the new council has accepted them.
Estimates of the costs of transfers should be noted in the council budget
documents and brought to the attention of MoFEA and PMORALG for financing as
appropriate.
Other Transfers (Subventions)
Allocation of Sectoral specific Block Grants;
126. Block Grant for Education: The purpose of the Education Block Grant is
for the effective administration and delivery of primary, secondary and adult
education at the council level, including school operating costs. The following
conditions will guide the use of the education block grant funds for primary and
secondary education during the medium term:-
(i) LGAs should abide by all standards and procedures in the delivery of
primary and secondary education as set forth by the MoEVT;
(ii) LGAs should budget a capitation grant for primary schools at an average
of Tshs. 10,000 per enrolled pupil per annum including those in special
schools; the budgeting for this should be done at school level and the
capitation fund should be used for text books, teaching and learning
materials, maintenance, minor repairs, furniture, and school
administration;
(iii) LGAs should budget a capitation grant for secondary schools at an
average of Tsh. 20,000.00 per enrolled student per annum; the budgeting
for this should be done at school level and the capitation fund should be
used for text books, teaching and learning materials, maintenance, minor
repairs, furniture, and school administration;
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(iv) LGAs should budget an average of Tsh. 1,500.00 per student per school
day for meals in boarding (registered primary and secondary) schools;
and
(v) LGAs should also ensure budgeting and effective collection of Tsh.
20,000.00 for each student enrolled in Day Secondary Schools and Tsh.
70,000.00 for each student enrolled in Boarding Secondary Schools as
part of Capitation fund from Council own sources through cost sharing
basis.
127. Block Grant Allocation for Health: The purpose of the Health Block
Grant is to provide funds for the operation and delivery of primary health care
services at council level, including district hospitals, health centres, and
dispensaries, as well as for local health programmes such as immunization and
health education.
128. Funds for medicines and medical supplies required for local health
facilities will be allocated to each LGA and the actual releases will go directly to
the Medical Stores Department (MSD). The MoHSW will continue with overall
responsibility of coordinating the quality and availability of medicines and
hospital supplies in line with implementation of the National Health Policy, 1997
as revised in 2007. As per CAG‟s Report for the year 2007/2008, each LGA is
required to maintain proper accounts for the medicines and hospital supplies
received from MSD and the balance of funds standing to its credit with MSD.
129. Local Government Authorities will be allocated the Health Block Grant in
line with the Comprehensive Council Health Plan Guidelines (CCHP) issued by
MoHSW The allocation will be of two types which are:-
(i) Allocation per cost centre such as DMOs‟ office, Council‟s and
Voluntary Agencies‟ Hospitals, Health Centres, Dispensaries and
Community interventions.
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(ii) Allocation by type of expenditure such as allowances, transport,
training and maintenance. The allocation guidance by cost centres and
type of expenditure should follow the arrangement set in the CCHP
guideline.
130. The following conditions must be followed by councils in the use of the
health block grant funds:-
(i) LGAs should set their own performance objectives and targets within the
context of the Guidelines for Preparation of Comprehensive Council Health
Plan, taking into account the interventions, conditions and priorities set in
each cost centre;
(ii) LGAs should only budget PE funds for employees in the Designated
District Hospitals (DDH) and Voluntary Agencies Hospitals (VAH) who are
recruited through LGAs‟ and MoHSW‟s arrangements. Employees working
under the terms of other employers than the Government will continue be
paid by those employers. The OC for DDHs, VAH and other Health
Facilities will be financed by the Government based on the priority areas
of support as approved by the respective LGAs in the CCHP.
(iii) The budget for medicines and hospital supplies will be purchased from
MSD under the curative sub vote (the cost centre for DMO‟s Office). All
funds for drugs and medical supplies will be deposited with MSD so as to
enable bulk purchases and distribution. LGAs will order from MSD depots
according to their requirements and within their budget allocation ceilings.
MSD is hereby instructed to maintain a separate account for each LGA
wherein deposits of funds are made and withdrawals in terms of value of
drugs requisitioned are maintained and share reports with LGAs on
quarterly basis. MoHSW and PMORALG will make arrangements for
ensuring that this is done.
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131. Block Grant for Agricultural and Livestock Development Services:
The purpose of the Agriculture Block Grant is to enable LGAs to administer and
deliver effective agricultural and livestock extension services and thus raising
productivity and ensuring food security within their areas of jurisdiction. LGAs
should allocate Agriculture Block Grant funds to cover the recurrent cost of
providing basic training and support to the farmers and for assistance in livestock
development. The following are sector specific conditions to guide the allocation
of the grant:-
(i) LGAs should allocate Agriculture Block Grant funds to the maximum of
20% for the administration of agricultural and livestock extension activities
at the council level;
(ii) LGAs should allocate at least 80% of Agriculture Block Grant for funding
agriculture and livestock extension activities at the Ward and Village
levels, in accordance with the provisions of the District Agriculture
Development Plans (DADPs);
(iii) LGAs should coordinate all stakeholders in determining the priorities for
implementation of Kilimo Kwanza initiatives as described in Chapter Six
(Medium Term Focus at Macro/National level) and ensure effective
implementation in their areas of jurisdiction.
132. Block Grant for Council Roads: The Road Block Grant is meant to
provide funding for the core maintenance of council roads as well as meeting the
costs of administering the councils Engineering Department. The amount availed
to LGAs is, expectedly not substantial because more funds are allocated through
Road Fund mainly for the same purpose. LGAs should use the Road Block Grant
funds to cover the cost of maintaining the existing local road network and not for
capital development purposes.
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133. Block Grant for Water: The purpose of the Water Block Grant is to
provide recurrent funding for local water activities, including the monitoring of
local access to potable water and implementation of new local water schemes for
underserved communities. Once development of such schemes is completed, the
actual operation and maintenance (O&M) of the schemes is to be handed over to
semi autonomous local water providers such as user groups, local water boards,
or incorporated water authorities. Councils should ensure that water users
establish funds for the operation and maintenance of water supply schemes from
user fees or community contributions, though the LGA may, depending on
availability of funds, provide support as additional funding from time to time.
134. The following instructions should be observed by each LGA in the
preparation of their plans and budgets for the use of Water Block Grant:-
(i) LGAs should abide by all standards in the monitoring and support of local
water delivery as set forth by the Ministry of Water and Irrigation.
(ii) LGAs should allocate the Water Block Grant funds to cover the recurrent
cost of monitoring access to potable water across the district and the
administrative expenses for implementing new water schemes for
underserved communities.
(iii) LGAs may allocate expenditure not exceeding 20% of the total grant for
supporting post-construction maintenance of water schemes in addition to
the maintenance funded from community resources.
(iv) LGAs may allocate expenditure not exceeding 60% to finance activities to
promote ownership of water schemes among communities and to support
their sustainability.
(v) Urban councils should use the Water Block Grant funds to improve water
access for underserved or underserved per-urban areas.
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135. The General Purpose Grant: The General Purpose Grant (GPG) is an
unconditional, equalizing grant whose purpose is to support council
administration. It enables LGAs to expand their revenue bases and provide some
additional local services, particularly outside the grant-aided sectors. GPG along
with local own source revenues are used to finance basic council administration
costs. Councils are allowed to use part of GPG funds for co-funding development
projects under the LGDG system. Otherwise, GPG is directed to such non grant
aided sectors including Administration, Planning, Finance and Accounts,
Community Development, Trade, Cooperatives, Natural Resources, Lands and
Cultural Development.
Other Recurrent Transfers (Subventions) to LGAs;
136. Health Sector Basket Fund (HSBF): HSBF resources are used to
supplement the OC funds provided under the Health Block Grant for the
operation and delivery of primary health care services at council level, including
district hospitals, health centres, and dispensaries, as well as local health
programmes such as immunization and health education. The same formula are
the one used for allocating the Health Block Grant is employed in allocating
financial resources from the HSBF.
137. Road Fund maintenance budget: The Road Fund resources are being
allocated between the Central Government and the Local Government on a 7:3
ratio. During the medium term, the formula described above for the Road Block
Grant will be applied in allocating the ceilings for the 30% share from the Roads
Fund. Each LGA will be allocated funds with specific ceilings for “Road Fund
Maintenance Budget” and transfer of road funds will be affected directly from the
Treasury to the respective LGAs.
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138. Likewise, there has been infrastructure problem in Dar es Salaam City
which causes close to intolerable high traffic jams, floods and wastage of time
and resources on the road. It is exceedingly difficult to keep the City clean and
has become insecure. To address these problems, Municipal Councils in Dar es
Salaam are called upon to allocate more funds.
139. HIV and AIDS Subventions: LGAs will continue to play a critical role in
addressing the HIV and AIDS pandemic in Tanzania. The National Multi-Sectoral
Framework (NMSF) recognizes that many activities can only be successfully
implemented at the local level, whether they are targeting prevention, care and
treatment or mitigating the impact of HIV and AIDS. As a result, the Government
has derived a mechanism to increase ownership and accountability at the LGA
level for the planning and implementation of HIV and AIDS interventions,
through the introduction of the “NMSF Grant” from TACAIDS to LGAs.
140. The NMSF Grant for HIV and AIDS for the medium term of 2010/11 –
2012/13 will be allocated based on the following formula: Population (70%), the
number of poor residents (10%); District Medical vehicle route (10%), and the
council‟s estimated HIV and AIDS prevalence rate (10%). LGAs are responsible
for budgeting resources to local prioritized targets and activities.
141. The following conditions are to be observed in using the NMSF Grant
funds for HIV and AIDS:-
(i) Each LGA should have a functioning Council Multi-Sectoral HIV and AIDS
Committee.
(ii) LGAs should have an existing plan and budget consistent with the
guidance from TACAIDS, PMO-RALG and the MoHSW.
(iii) LGAs should abide by all technical and professional regulations of MoHSW
and MLYD, including the delivery of Voluntary Testing and Counselling
services.
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(iv) LGAs should ensure that HIV and AIDS targets and activities are
developed and coded within their MTEFs as “Objective A” to enable
tracking of expenditure. TACAIDS has developed the “minimum package
of interventions” which encompasses key areas including prevention, care
and impact mitigation activities, as earmarked in the National Multi-
Sectoral Framework of 2008 – 2012;
(v) All activities developed under “Objective A” should be implemented and
reported accordingly by the Council Director assisted by the HIV and
AIDS Coordinator, whereby transparency, participation and accountability
must be observed through Multi-Sectoral Committees at all levels;
(vi) The allocation ranges given above are for the overall budget and therefore
funds should not be used for long term or costly training as well as any
assets whose unit cost exceeds the value of two million (Tshs.
2,000,000);
(vii) Purchase of medicines from other sources is only allowed when the
Council has evidence that MSD medicine items are out of stock at the
time of order. RMO and regional pharmacist should verify and approve
the procurement procedure.
(viii) Budgeted funds will be disbursed into a separate bank account for HIV
funds managed by the Council Directors;
(ix) Priority will be given to support programmes with a good performance
record of reaching the end user namely PLHIVs and their primary carers
within the household and community, including CBOs, NGOs, FBOs, with
special focus on organisations-led and composed of PLHIVs; and
(x) All LGAs are required to submit quarterly HIV and AIDS technical and
financial reports to PMO-RALG for consolidation.
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Anti-Corruption Strategy and Action Plan
142. LGAs are required to introduce systems of integrity; accountability and
transparency by institutionalizing Integrity Committees which are functional build
their capacity and also that of the community based organisations, service
deliverers and outlets for combating corruption. Activities related to anti-
corruption should be budgeted from own source and GPG allocation under
Objective B to enable tracking of expenditure.
Development Funds
143. Similar to the recurrent sectoral block grants, LGAs will also continue to
receive development transfers through the Local Government Development Grant
(LGDG) system. Through the LGDG System, discretionary Council Development
Grants (CDG) and Capacity Building Grants (CBG) as well as sector-specific
development grants for agriculture (ASDG), water (WSDG), health (HSDG) and
education (ESDG) will be provided.
The Local Government Development Grant (LGDG) System
144. The Government has been implementing a unified system known as the
Local Government Development Grant (LGDG) Government Capital Development
Grant (LGCDG). This LGDG System provides formula-based discretionary and
sector-specific development funding to LGAs. During the medium term the
Government will seek to harmonize sources of development funds to LGAs so as
to have the LGDG system as the main mechanism for channeling all development
funds to LGAs.
145. LGAs will be assessed in nine key areas as explained in the 2008
Assessment Manual in order to determine the performance based level of
funding to LGAs‟ development projects. The System seeks to promote
compliance with national policies and regulatory frameworks as well as creating
an incentive system that allows for adjustment of the annual grant allocation to
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each LGA depending on the level of achievements against the set of minimum
conditions and performance indicators.
146. The development transfers under the LGDG System adhere to the
following five common principles:-
(i) The allocations are based on an objective, equitable, efficient and
transparent formula;
(ii) The allocations are performance-based and subject to a common
performance assessment;
(iii) The rules of the LGDG system are universally applied and all councils that
qualify should receive formula based allocations;
(iv) There is only a single PMO-RALG managed approval and disbursement
process for all windows of the LGDG system, guided by a single LGDG
System Steering Committee.; and
(v) The LGDG system transfer resources, in combination with other recurrent
and development grants and own source revenues, are to be spent by
the LGAs on line with locally determined priorities as captured in the
council plans and budgets thus promoting local governance, autonomy,
accountability and ownership.
147. The LGDG will flow to LGAs through Council Development Grants (CDGs),
and the Capacity Building Grants (CBGs), as well as sector specific grants
integrated into the system. In 2010/11 the sector-specific grants will be for
sector specific windows for the Agriculture, Water, and Education and Health
sectors. During the medium term, it is expected that a separate sector window
for roads will also be established to facilitate the flow of development funding for
roads to the LGAs.
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Council Development Grants (CDG)
148. The Council Development Grant (CDG) is provided to enable the LGAs to
construct and rehabilitate infrastructure, according to locally-defined priorities
guided by a broad investment menu, with a view to empowering communities,
improving service delivery and reducing poverty. Those not meeting the
minimum conditions will only receive 25% of their CDG entitlements but under
strict supervision of PMO-RALG and the Regions during which time such councils
will improve performance so that allocations may improve in the following years.
149. As it was the case in the previous years, the CDG will be allocated based
on the following formula: 70% is distributed to LGAs in proportion to the size of
population, 10% is distributed to LGAs in proportion to the (capped) land area,
and 20% is distributed to LGAs in proportion to the estimated number of poor
residents in each council area.
150. All LGAs will be classified on an aggregate performance score with
minimum passing scores in each functional area. Each LGA will get a minimum
amount of CDG ranging from 25% to 100% of their entitlements depending on
the assessment performance. LGAs classified as “Very Good” performers will
receive 100% of the entitled allocation, those classified as “Good” will receive
80% while those classified as “Poor” will receive 50% of the entitled allocation.
LGAs which fail to meet the minimum conditions will receive 25% of the entitled
LGDG allocation, subject to strict oversight from PMO-RALG and Regions. The
oversight will be guided by compliance action plans that will be developed and
passed by respective LGAs so that they can finally qualify for receipt of CDG.
151. PMO-RALG and the Regions will identify the causes for non-compliance for
those LGAs which fail to meet the minimum conditions and take corrective and
disciplinary actions. Those LGAs will also prepare a “Compliance Action Plan for
LGDG” which identifies the problems, identifies the necessary remedial action to
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bring the LGA into compliance, and identifies a timeline of action with clear
milestones to enable the council to monitor progress towards attaining full
compliance to the minimum standards the following year. According to the
Assessment Manual the RS will monitor respective LGAs on a monthly basis while
such monitoring will be undertaken by PMO-RALG on quarterly basis.
Capacity Building Grants (CBG)
152. Through the LGDG System, a discretionary Capacity Building Grant (CBG)
is also to assist LGAs to improve their capacity and performance. All LGAs should
meet the following conditions in order to access CBG:-
(i) They should prepare and approve capacity building plans; and
(ii) They should have accounted for CBG funds issued to them in the previous
years.
153. Using CBG funds, LGAs will be able to pay for demand driven training
interventions and other capacity building activities such as technical assistance
study of other LGAs best practices, retooling etc. As set out in the LGDG System
Implementation and Operations Guide, a minimum of 40% of the CBG should be
utilized at Ward, Village and Mtaa levels in order to capture locally determined
priorities. LGAs that do not meet the LGDG Minimum Conditions will receive
100% CBG but with close supervision by PMO-RALG and the Regions based on
the agreed compliance action plans. By this arrangement such LGAs will be able
to improve their capacity sooner rather than later.
Utilization of LGDG
154. As it was the case in the past, during the medium term, LGDG funds will
continue to be used for a broad range of investments in infrastructure and
service provision within the mandates of the LGAs. The CDG is a non-sectoral
discretionary development transfer to LGAs for development expenditures to
enable implementation of new infrastructure or rehabilitation of existing stock.
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Utilization of the LGDG funds should be in strict observance of the following
guidelines:-
(i) LGAs should allocate and contribute 5% of the cost of the CDG funded
project and this percentage should come from GPG and own source
revenues;
(ii) By no means should CDG grant funds be used to fund routine recurrent
operations and maintenance activities, although a portion can be used to
provide equipment and supplies needed for newly completed
development projects in order to make them fully operational;
(iii) Costs of planning, appraisal, monitoring and supervision may be allocated
up to 15 to ensure strong planning and project implementation at the
local level;
(iv) The key poverty reduction areas of health, education, water and
sanitation, roads and agriculture should attract up to 80% of the CDG
funds;
(v) 50% of the value of projects that attract CDG funding should be identified
and implemented at the Villages or Mitaa level through the procedures set
out in the Planning and Budgeting Guidelines for Villages and Mitaa; and
(vi) Not more than 60% of CBG funds should be spent on investments at the
Higher Local Government Authorities (HLGAs) level.
Agriculture Sector Development Grant (ASDG)
155. Development activities under the Agriculture Sector Development
Programme (ASDG) at district level are to be implemented by each LGA, based
on a District Agricultural Development Plans (DADP) which is part of the Council
Strategic Plan. The Government will continue to provide development grant
(ASDP) funds for that purpose.
156. As it is to be expected the bulk of ASDP expenditures at LGA level are
funded through the following three types of fiscal grant transfers:-
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(i) District Agricultural Development Grant (DADG);
(ii) Agricultural Extension Block Grant (A-EBG);
(iii) Agricultural Capacity Building Grant (A-CBG); and
(iv) For the medium term, these grants will be directed at implementing the
national blueprint of Kilimo Kwanza.
157. Consistent with the LGDG System, these agriculture development grants
are allocated by formula and released to LGAs based on the LGDG performance
assessment results. As with the discretionary CDG grant, LGAs are assessed and
classified into performance categories which will determine the amount of the
Agriculture Development Grant to be received, which will range from 50% to
100% of the formula-based entitlement as per the LGDG Assessment Manual.
District Agricultural Development Grant (DADG)
158. LGAs will receive the DADG to fund local agricultural development
expenditures; each LGAs will be allocated DADG funds of either 50%, 80% or
100% depending on its LGDG performance assessment. As it will be the case
with CDG, any LGA not meeting the minimum conditions will receive 50% and be
but under strict close supervision from PMO-RALG and RS as per the 2008 LDGD
Assessment Manual. The supervision will enable the LGA to perform better and
qualify for receipt of full grant entitlement.
159. The DADG will support implementation of community priorities identified
in the DADPs on a cost-sharing basis, with beneficiaries contributing additional
labour and materials in varying proportions, depending on the nature of the
investment. All activities and investments will be identified in accordance with
local needs, as determined through local participatory planning and budget
processes, and in line with the LGDG system. This arrangement will enable local
priorities to be funded.
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160. Eligible investments qualifying for financing include: environmental
investments; public infrastructure, such as rural roads; small-scale irrigation
schemes; group or community investments of a small scale productive nature;
group or community investments in risk bearing (locally) innovative equipment.
Others include agricultural inputs (seeds, fertilizers and agro-chemicals), that
would ordinarily not be eligible for cost-sharing, unless they are part of
participatory technology development activities.
Agricultural Extension Block Grant (A-EBG)
161. It will provide funding for both public extension services, as a Government
contribution, and for Non State Actors. The A-EBG is expected to be a shot in the
arm for the development of the agricultural sector. Careful use of this grant
coupled with proper supervision of delivery of extension services will contribute
much to the success of the Kilimo Kwanza blueprint. The grant will be allocated
on formula basis and in line with the performance assessment and conditions as
outlined in the 2008 LGDG Assessment Manual.
Agricultural Capacity Building Grant (A-CBG)
162. The A-CBG is also a sub-component of the ASDG which provides financing
of LGAs capacity building in the context of Agricultural Development. The A-CBG
will be used to improve functional areas to meet the minimum conditions and to
improve on the performance criteria in subsequent years to access higher
resource transfers. Each LGA will receive a capacity building grant. LGAs which
do not meet the minimum conditions will receive 100% of their entitlement but
will be put under close supervision by PMO-RALG and RS in collaboration with
the Ministry of Agriculture, Food Security and Cooperatives.
163. The initial focal areas of the capacity building grant should be on
improving district agricultural planning, agricultural investment appraisal and
review, agricultural services reform, and enhancing stakeholder engagement.
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LGAs should develop a capacity building plan to systematically identify the
capacity building priorities to be funded through the CBG.
164. The allocation of DADG and A-EBG of the ASDP will be allocated according
to the same formula as the Agriculture Recurrent Block Grant: Number of
Villages - 80%; Rural Population - 10%; and Rainfall Index - 10%. The allocation
to be received by each LGA will depend on performance assessment whereby
“Very good” performers will receive 100%, “Good” performers will receive 80%,
and “poor” performers will receive 50% of the entitlement while “failed”
performers (those not meeting the minimum conditions) will receive 50% under
strict oversight by PMO-RALG and the RS.
Water Sector Development Grant (WSDG)
165. The Government has been implementing a Water Sector Development
Program (WSDP), which includes a component on National Water Supply and
Sanitation Program (NWSSP). The objective of the NWSSP is to strengthen
decentralized planning, project preparation, funding, implementation and
management through local governments as well as developing and implement
strategies for sanitation, hygiene promotion and communication.
166. The Water Sector Development Grant (WSDG) has been established as a
window of the LGDG system and this grant consists of a “Water Sector
Development Grant” (WSDG-CDG) and a “Capacity Building Grant” (NWSSP-
CBG).
167. The WSDG CDG is allocated based on a formula whose variables are the
total underserved population which attracts 70% of the grant pool and
technological options which attracts 30% of the grant pool. The release of the
Water Sector Development Grant (WSDG) funds will be determined by the level
of performance status. LGAs classified as “Very Good” will receive 100%. LGAs
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classified as “Good” will receive 80% while LGAs classified as “Poor” will receive
50%. LGAs which fail to meet the minimum conditions are classified as “Failed”
and will receive 50% but with close supervision from PMO-RALG and RS, in
collaboration with the Ministry of Water and Irrigation.
168. The WSDG CBG is allocated on an equal lump-sum basis. All LGAs will be
allocated 100% of the NWSSP-CBG. However, those councils not meeting the
minimum conditions will be subject to strict supervision from PMO-RALG and RS,
in collaboration with the Ministry of Water and Irrigation.
169. The WSDG CDG funds can be used for implementation of infrastructures
such as drilling of boreholes, construction of dams, installation of pumps,
construction of piped systems, and construction of demonstration latrines.
170. WSDG-CBG funds may be used in creating and strengthening District
Water Sanitation Teams (DWSTs) within LGAs, enabling them to prepare NWSS
Plans and appraise NWSS Projects proposed by communities. This will involve
rehabilitation and construction of offices, logistical support (vehicles,
motorcycles, computers, photocopiers and fax machines). Likewise the fund will
be used in ICT operations; monitoring of NWSS services delivery; building
community capacities to properly maintain and operate their facilities; and
promoting hygiene, sanitation, and HIV and AIDS mitigation and prevention.
Health Sector Development Grant (HSDG)
171. This grant which is a window within the LGDG system for providing
earmarked health-related development funds will be used for implementing the
Primary Health Services Development Programme (MMAM).
172. The HSDG funds will be allocated according to the same formula as the
Health Recurrent Block Grant, which accounts for 70% Population, 10% Number
of poor residents, 10% Council medical vehicle route, and 10% Under-five
mortality. The fund will be released to LGAs based on the LGDG performance
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assessment process. LGAs which are classified as “Very Good” will receive
100%, “Good” will receive 80% and “Poor” will receive 50%. Those LGAs not
meeting the minimum LGDG conditions will receive 50% but under strict
oversight by PMO-RALG and RS, in collaboration with the Ministry of Health and
Social Welfare.
Education Sector Development Grant (ESDG)
173. The Education Development Grant (ESDG) which is also a window within
the LGDG system is designed to support LGAs in improving the accessibility and
quality of primary, secondary and adult education. The ESDG resources are to be
used to fund the education development priorities as identified through a local
participatory planning approach. These include construction/rehabilitation of
primary basic education infrastructures such as classrooms, administration
buildings, school-related wash rooms/latrines, desks, chairs and other education-
specific development investments.
174. The allocation of the ESDG is also formula-based. The funds are allocated
70% based on the number of school-aged children in each LGA, 20% based on
the classroom shortage (the gap between the number of classrooms required
and the actual number of classrooms, as determined by MoEVT) and 10% based
on the level of poverty. While all LGAs are eligible to receive the ESDG funds, the
actual allocation and release, will depend on the level of performance to be
determined during the assessment exercise.
175. LGAs which, upon the assessment, are classified as “Very Good” will
receive 100%, “Good” will receive 80% and “Poor” will receive 50% of the
formula-based allocation. Those LGAs not meeting the minimum LGDG
conditions will receive 50% but will be subjected to strict oversight by PMO-RALG
and RS, in collaboration with the Ministry of Education and Vocational Training,
so that they can qualify to receive their full entitlements in the following year.
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Other Special Development Grants and Funds to Local Governments
176. Apart from the development transfers under the LGDG System, some
LGAs will receive a variety of other development funds that will be limited to
specific regions (area-based programmes), sectors and purposes. These
transfers cover the following among others:-
(i) Participatory Agriculture Development Empowerment Project (PADEP);
(ii) District Agriculture Sector Investment Project (DASIP);
(iii) Urban Development and Environmental Management (UDEM);
(iv) Participatory Forest Management (PFM);
(v) District Irrigation Development Fund (DIDF);
(vi) Sustainable Wetland Management (SWM);
(vii) Village Travel and Transport Programme (VTTP);
(viii) Local Government Transport Programme (LGTP);
(ix) Tanzania Social Action Fund (TASAF);and
(x) Child Survival through UNICEF Grant Support.
177. Clearly, each of the special development grants is earmarked for specific
purposes and allocated based on purpose-specific criteria. These development
funds should be allocated, planned and budgeted in accordance with the Local
Government Acts and relevant financial management regulations as well as the
specific conditions attached to each special development grant as determined by
the specific sector ministries, PMO-RALG and MOFEA. LGAs which receive these
special development grants should consult the specific requirements and
regulations and hold discussions with PMO-RALG and the various sector
ministries for guidance as required and appropriate. These additional funding
streams are meant to augment the development efforts being made with funding
from the major grants elucidated above.
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Harmonization of Development Grants
178. The numerous numbers of Development Grants and funding sources to
LGAs, with different allocation formulae and conditions of access are obviously
confusing to the extent of impinging on good governance and accountability.
They therefore call for an early harmonization. MOFEA will therefore lead PMO-
RALG and the relevant sector Ministries in this exercise so that each year of the
medium term can progressively witness harmonization of the various
development funding flows into the Local Government Development Grant
(LGDG) system. The plan is to harmonize and merge all the development grants
into the LGDG system by the year 2012/13.
Tanzania Strategic Cities Project (TSCP)
179. The main thrust of the TSCP is to improve the quality of and access to
urban services in seven Urban Local Government Authorities namely, Mwanza,
Arusha, Mbeya, Mtwara, Kigoma, Tanga and Dodoma. The project will be
implemented for five years from 2010/11 and has the following components:
(i) Core Urban Infrastructure and Services Component for which an
estimated USD 128.6 million will be used for construction of urban roads
and drainage systems, improving street lighting and managing liquid and
solid waste;
(ii) Institutional Strengthening Component for which an estimated USD 9.68
million will be used for various capacity building interventions for staff in
respective LGAs including training, retooling, coaching, on-job mentoring
and attachments; and
(iii) Implementation Support Component for which an estimated USD 11.72
million will be spent on enhancing capacity of PMO-RALG in project
management, monitoring, reporting, environmental and social safeguards
and audit systems, preparing future urban projects including a separate
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one for Dar Es Salaam city, and undertaking a study on municipal finance
and creditworthiness.
Overall Budgetary Issues and Guidance
180. Needless to say, during the medium term plan, all Regions and LGAs will,
just like the MDAs, be guided by the general instructions provided in Chapter
Nine (Institutional Responsibilities) of this document. They are however also
expected to observe the following specific instructions as appropriate:-
(i) In carrying out its functions, each LGA is required to adhere to the
principles of good governance which call for participation, transparency
and accountability. In this regard, communication of relevant information
to relevant stakeholders and submission of quality plans and budgets are
very important;
(ii) Each council is responsible for ensuring that provision for enhancing
capacities in planning and budget of Council, Ward and Village or Mtaa
level is made in its budget;
(iii) Each LGA should submit its approved annual plan and budget to PMO-
RALG and MOFEA through the respective Regional Secretariat for scrutiny,
and consolidation and inclusion in the draft national plan and budget to be
presented to the National Assembly;
(iv) Each LGA should capture all financial resources from own sources,
intergovernmental transfers (recurrent and development), subventions
and other development sources in the MTEF Document and that those
resources are geared towards financing the approved Council plans;
(v) All Councils are required to re-budget funds that remained unspent at the
end of the last financial year. This procedure should be done to ensure
that the unused funds are reported on, and that such funds form part and
parcel of the budget for the new financial year;
(vi) LGAs‟ Internal Audit Units should be provided with adequate recurrent
(OC) budget and strengthened in terms of facilities including transport so
that they can carry out their functions effectively and efficiently;
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(vii) LGAs should budget for expenses of relocating employees who are
expected to be transferred during the financial year. All transfers should
be limited to a maximum of 3% of the total number of employees per
annum; and
(viii) Each LGA should ensure that, first charge priority in the allocation of funds
include outstanding statutory debts owed to employees such as staff
salary arrears and payment of goods and services received from suppliers.
In this case, each LGA should not commit any expenditure where funds
are not available. In particular, LGAs are urged to strictly adhere to the
International Public Sector Accounting Standards (IPSAS) which require
recognition of debts as they occur. The final accounts should capture all
such debts which are, in the unlikely event, accumulated during the
financial year. So the question of ad hoc verification of staff claims and
other debts as it has been the case in the past should not occur in future.
The Government will continue to build the capacity for the relevant staff in
LGAs so as to step up compliance with IPSAS.
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CHAPTER FOUR
IMPLEMENTATION OF PUBLIC SECTOR REFORMS
Introduction
181. This chapter presents the performance and challenges facing core
governance reforms namely: Public Service Reform Programme (PSRP II), Local
Government Reform Programme (LGRP II), Legal Sector Reform Programme
(LSRP), Public Financial Management Reform Programme (PFMRP III), National
Anti-Corruption Strategy and Action Plan (NACSAP II), Business Environment
Strengthening for Tanzania Programme (BEST) and Second Generation of
Financial Sector Reform Programme for the period of 2009/10. The reviews
epitomize the basis for the medium term focus.
Public Service Reform Programme II
182. The PSRP II whose thrust is towards Performance Results and
Accountability was designed to create an efficient public service that will be
capable of delivering better services to the citizen and to enhance performance
and accountability across government.
183. Achievements: During the period under review, the following
achievements were registered:
(i) Finalization of two major interventions which are also important program
milestones for the year 2008/09. These include; Development of policy
making process and its Action Plan, and development of ethics operational
manual;
(ii) Integration of the PSRP II reform activities into 90 Government
institution‟s MTEF for 2009/10 namely; 21 regional Secretariat, 15
Independent Departments, 29 Executive Agencies and 25 Ministries;
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(iii) A total of 70 Institutions have signed MoU with POPSM for the
implementation of PSRP II demand driven interventions for 2009/10;
(iv) Public Service Pay and Incentive Policy has been prepared in line with the
recommendations of the Presidential Pay Commission ready for
government approval.
Pay Reform
184. Pay Reform was adopted as key component of the Public Service Reform
Program (PSRP) for the purpose of realizing more systematic and comprehensive
approach towards addressing the pay and incentive in the public service. This is
because pay reform is considered to be crucial to consolidating the capacity built
to sustain and improve performance in the improvement of public service
delivery. Thus, pay determines motivation and the level of skills the public
service can attract recruit and retain.
Achievements
185. The achievements registered in the implementation of pay reform include:
(i) Average pay has increased by 347.62% from Ths 70,710 in 1999 to
Tsh. 316,515 in 2009/10;
(ii) Pay reform was institutionalized and pay adjustments proposals
become an integral part during discussions of the MTEF;
(iii) Medium Term Pay policy was adopted for purpose of enhancing pay
levels for the qualified technical, professional and management cadres
of the public service;
(iv) Introduction of various measures aimed at improving the link between
pay and performance example Job Evaluation System; and
(v) Consolidation of allowance into basic salaries, and rationalization of
salary structures.
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Local Government Reform Programme II
186. The second phase of LGRP which will be known as the Local Government
Reform Programme II (Decentralization by Devolution), in short LGRP II (D by
D), started in July 2009 and it is planned for implementation for five years, to
June 2014. The overall goal of LGRP II (D by D) is accelerated and equitable
socio-economic development, public service delivery and poverty reduction
across the country. Specific reform activities are therefore line up to achieve
devolution of government role and functions, and to that end transform LGAs to
competent strategic leaders and coordinators of socio-economic development,
accountable and transparent service delivery and poverty reduction interventions
in their areas of jurisdiction. LGRP II (D by D) which was approved by the
government in June 2009, seeks to support the National Strategy for Growth and
Reduction of Poverty – MKUKUTA, the policy framework document that describes
the national strategy and action plans for poverty reduction.
187. Achievements:
(i) Increased awareness of Decentralization by Devolution policy across the
Government;
(ii) Increased people‟s participation in planning and implementation of social
economic development initiatives;
(iii) Improvement in local government financial management and
accountability as evidenced by increased clean certificates and decline in
number of qualified certificates and adverse certificates issued by the
Controller and Auditor General;
(iv) Improved Local Government Authorities own sources revenue collection
where in 2008/09 LGAs collected Tshs 100.6 billion as compared to
2007/08 where Tshs 61.0 billions was collected; and
(v) Increased number of LGAs using Opportunities and Obstacles to
Development (O & OD) planning methodology in planning process; and
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(vi) Enhanced funds flow predictability to LGAs which enables planning with
greater precision.
Legal Sector Reform Programme (LSRP)
188. The main thrust of the LSRP is to ensure timely and effective dispensation
of justice in the country. The Programme was recently reviewed and a number of
findings and recommendations were registered by stakeholders.
189. Achievements:
(i) Streamlined and strengthened Ministerial portfolio, prosecution and
investigation by separating prosecution and investigation as well as
restructuring MoCAJ for effective legal service delivery;
(ii) Improved capacity regional and district prosecution offices throughout the
country by employing 204 State Attorneys;
(iii) Improved access to justice for persons in remand homes and prisons by
facilitating transport for Prisoners, remedies to and from the courts
starting with DSM;
(iv) Established and strengthened legal aid network, comprising of key non-
state actors in the legal sector for justice dispensation;
(v) Human Rights observance by law enforcement agencies monitored by
NGOs ,and Commission for Human right ( CHRAGG );
(vi) Improved capacity of police to manage investigation and observance of
human right and good governance training;
(vii) Strengthened accountability, integrity, and transparency of public leaders
by undertaking physical verification of Assets and Liabilities for 373 Public
Leaders;
(viii) Improved quality of legal professionals by development of a harmonised
National Legal Training Curriculum;
(ix) Strengthened legal profession through offering practical legal training;
(x) LSRP has been fully mainstreamed and integrated in government process;
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(xi) LSRP Medium Term Strategy 2005/06 – 2007/08 was extended for a
further period of two years from 2009/10 – 2010/11 to cater for the
delays encountered during the initial years of implementation.
National Anti-Corruption Strategy and Action Plans (NACSAP II)
190. The overall objective of the NACSAP II is to weed out corruption,
particularly grand corruption through public awareness, deterrence,
investigations, prosecutions and judicial convictions.
191. Achievements:
(i) National Governance and Anti-Corruption survey draft results completed
and presented to stakeholders for discussion in September, 2009;
(ii) Enhancing governance and accountability by submitting grand and petty
corruption cases in Courts of Law for determination and judgements;
(iii) Widening the scope of NASCP II implementation by involving Civil society,
Private sectors, Religious based organizations, media, Parliamentarians
the fight against corruption;
(iv) Strengthened Capacity of Integrity Committees members from MDA‟s and
LGA‟s by training 300 members in NACSAP implementation;
(v) Draft Legislation of the Public Leadership Code of Ethics Act and Political
Parties Financing Act completed; and
(vi) The capacities of the key institutions (Watchdogs and Oversight) to
manage corruption cases and Anti-corruption strategies strengthened.
Public Financial Management Reform Programme (PFMRP)
192. The main thrust of the PFMRP is to ensure efficiency, effectiveness,
transparency, and accountability in the use of public financial resources.
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Achievements:
(i) Merging budget economic classification from the 1986 GFS version to the
2001 GFS version, in preparation for accrual accounting as well as
fostering compliance with IMF standards;
(ii) Expenditure monitoring and tracking Unit established under MoFEA for
ensuring transparency, accountability, and value for money as well as
upgrading the strategic budget allocation system (SBAS);
(iii) A unit under MoFEA responsible for central formulation of public
procurement policy, as well as development, coordination and proper
supervision of the procurement cadre was established to oversee
implementation and compliance of the Public Procurement Act;
(iv) Capacity building measures undertaken including training of staff in MDAs,
RAS, and sub-Treasuries in Bank reconciliation. Currently about; 95% of
Central Government transactions are automatically reconciled within
Epicor while the remaining transactions are dealt with through the
adjustment reconciliation module developed recently; and
(v) Strengthening capacity of financial management and control.
BEST Programme
193. Achievements: During the year under review the following were
achieved:
(i) Online database for Judiciary (Court of appeal) designed, installed and
judgments can be conveniently uploaded online to facilitate commercial
dispute resolution;
(ii) BEST Programme reviewed to accommodate recent Government initiatives
to facilitate doing business in the country;
(iii) Decentralisation of issuance of title deeds to zonal level; and
(iv) BEST activities have been mainstreamed to the MDAs, Regions, and LGAs
as appropriate.
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Second Generation Financial Sector Reform Programme
194. The Program, initiated in 2003, aims at broadening access to financial
services, while ensuring the soundness of the financial system. The program
constitutes a roadmap for implementation of reform measures in the financial
sector and other areas, which impact on the functioning of the financial sector.
195. Achievements: During the year under review the following were
achieved:
(i) Transformation of TIB into a Development Finance Institution (DFI)
/Development bank;
(ii) Enactment of the social security (Regulatory) Act, 2008;
(iii) Investment guidelines for pension funds have been drafted;
(iv) The Government has established Agriculture Window at TIB Bank;
(v) The Mortgage Financing (Special Provisions) Act was passed into law in
November 2008. Amended provisions include Land Act, The Land
Registration Act, The Magistrate Court Act, and The Civil Procedure
Act); and
(vi) The Unit Title Act was passed by the National Assembly in November
2008.
Reform Challenges
196. A number of strategic and operational challenges have been experienced
during the year under review. Some of the challenges are generic or specific to
implementation of reform agenda. Generic challenges relate to monitoring and
evaluation for results, realistic action plans and their endorsement by relevant
parties, financial management, budget and disbursements, as well as effective
and extended dialogue including review processes. Another challenge relates to
enhancing capacity and skills of procurement specialists to manage procurement
process. Specifically, the following were registered as broad generic challenges
for each reform programme:
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197. Public Service Reform Programme II (PSRP)
(i) Strengthening e-government implementation across MDAs, Regions
and LGAs;
(ii) Enhancing institutional capacity of MDAs to implement PSRP II;
(iii) Strengthening capacity of the Reform Coordination Unit to coordinate
cross cutting reforms;
(iv) Ensuring the use of client service charter in MDAs;
(v) Enhancing public service pay in tandem with expansion of Public
Service and Limited Resource Envelope (Wage Bill); and
(vi) Attracting and retaining competent staff in the public service especially
in underserved areas.
198. Pay Reform
i. Ensuring equal pay for equal value of work across the public service;
ii. Competitiveness of public service pay;
iii. Sustaining pay enhancement in an era of expanding public service
employment;
iv. Re–emergence of ad hoc and piece meal approaches to pay adjustments;
v. Increasing trend of allowances in the public service to offset low salaries;
and
vi. Mainstreaming Project Implementation Units (PIUs) into the Government
structure.
199. Local Government Reform Programme (LGRP)
i. Strengthening monitoring, evaluation and reporting at RS and LGA levels;
ii. Improving capacity of LGAs to undertake realistic revenue budget
projections;
iii. Creating conducive environment for underserved LGAs to attract and
retain qualified staff; and
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iv. Ensuring equitable distribution of resources and improving public service
delivery at lower Local Government levels.
200. Legal Sector Reform Programme (LSRP)
i. Coping with changing social culture of the people arising from
urbanization, expanding and intensifying interaction with other cultures;
ii. Aligning with new pluralistic democratic political environment coupled with
the movement towards participatory management of socio-economic
development;
iii. Accommodating the expanding and institutionally complex free market led
economy; and
iv. Adoption of the vast growing electronic commerce.
201. National Anti-Corruption Strategy and Action Plans (NACSAP II)
i. Funding for Anti- Corruption and governance activities at all levels of the
Government;
ii. Capacity of the Integrity committee‟s members in handling governance
issues;
iii. Developing clear modality of involving non state actors in the fight
against corruption, given the different levels of understanding and
responsibilities;
iv. Building up an ethical behaviour in poverty stricken society.
202. Public Financial Management Reform Programme (PFMRP)
i. Improving Public Financial Management in LGAs;
ii. Operationalisation of core IFMS modules relevant for effective
management of public resources;
iii. Enhancing cash flow forecasting and predictability of the budget;
iv. Improvement in public procurement processes;
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v. Instituting structured learning on PFM for capacity building in MDAs,
Regions and LGAs for outcome based management; and
vi. Sharpening the focus of PFMRP to strengthen dialogue on PFM issues.
203. BEST Programme
i. Modernisation of the business registry; and
ii. Addressing cumbersome administrative and legal procedures in doing
business.
204. Second Generation Financial Sector Reform Programme
i. Broadening financial inclusiveness,
ii. Promotion of a vibrant financial market,
iii. Conflicting laws on social security funds,
iv. Establishing viability of existing Social Security Funds, and
v. Operationalizing financial leasing Act.
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CHAPTER FIVE
THE PUBLIC ENTERPRISES
205. This Chapter presents an overview of management and performance of the
public enterprises, their contribution to Government revenue, achievements,
challenges, and the way forward.
206. The government owns various investments in different sectors. According to
the Treasury Registrar Statement of 30th June 2009 there are 225 public
institutions, whereby 164 institutions are owned by government per verse and 61
institutions by interests in terms of joint venture. The total value investments in
Public Enterprises has increased from Tshs. 5,281.90 billion as at 30th June, 2008 to
Tshs. 6,284.04 billion as at 30th June, 2009.
Management of Public Enterprises
207. Management of government enterprises is governed by different enactments.
These include; The Treasury Registrar Ordinance No. 35 of 1959 as amended; The
Public Corporations Act Cap 257 as amended; The Public Finance Act Cap 348 as
amended; The Public Service Act Cap. 298; and The Executive Agencies Act, Cap.
245. The Government‟s thrust is to ensure improved performance and sustainability
of the public enterprises and strengthening the monitoring and evaluation
mechanism and accountability.
208. The Government has been undertaking reforms in the management of public
enterprises with the aim of increasing revenue, productivity and reduction of
financial burden to the Government. As at 30th June 2009, 27 enterprises were
under reform process while 12 enterprises were under liquidation.
209. In the course of managing enterprises, some enterprises faced financial
constraints for the year under review and had to get government support amounting
to Tsh. 71.78 billion, where by TANESCO received a total of Tsh. 39.07 billion,
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RAHCO Tsh. 2.28 billion, ATCL Tsh. 18.24 billion and TRL Tsh. 12.19 billion. The
aforementioned institutions may call for more funding because of their ailing
financial position.
Contribution of Public Enterprises to the Government Coffers
210. The public enterprises contribute to the government coffers through payment
of dividends, corporate tax which is remitted direct to TRA, and other remittances
and levies in the case of commercial enterprises. A summary of revenue collection
for the last four years (2005/06 to 2008/09) is indicated as follows:-
Table 5.1: Revenue Collection from Public Institutions
Source: Annual Treasury Registrar Statements
211. The amount collected in respect of dividends, loan repayments and other
proceeds as at 30th June 2009 shows that the total collection of Government
revenue by the Treasury Registrar during the year 2008/09 was Tshs 84.12 billion
compared to Tshs 76.95 billion collected during 2007/08, being an increase of Tshs
7.17 billion. The increase in revenue realized in 2008/09 was due to the proceeds
from Initial Public Offering (IPO) of 16% of Government shares in NMB Plc. The
proceeds of 5% shares allocated to NMB employees will be realized in the financial
year 2009/10. Noted from the above table, is the drastic decrease in revenues from
Tshs. 60,696 billion in year 2005/06 to shs.26,054 billion in 2006/07. However, the
same increased to shs.76.951 in year 2007/08 attributed by the fact that,
remittances during year 2006/07 came from Loans Advances Realization Trust
(LART) alone, while in year 2007/08 more institutions remitted their surpluses. The
dividend also increased substantially due to BOT payment which included arrears
due in year 2006/07. Similarly more institutions also joined the list of dividend
ITEM 2005/06 2006/07 2007/08 2008/09
Dividends 12,208,498,674 13,389,709,985 57,147,501,891 31,323,253,591
Principal & Interest 12,178,605,210 12,664,740,770 11,503,625,043 6,795,002,070
Other Proceeds and Remittance
36,309,197,460 330,000 8,300,000,000 46,001,873,960
TOTAL 60,696,301,343 26,054,780,755 76,951,126,934 84,120,129,620
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payers such as E.A.Cables, Tanzania News Papers (TSN), and Tanzania Italian
Petroleum Refinery (TIPER).
212. The Government Institutions which have been established to regulate and
oversee certain activities or areas are empowered by their establishing legislations to
impose various levies, charges and fees and retain them. In view of this, the
Government resolved to tap such revenues from these institutions by empowering
the Minister responsible for Finance to access the surpluses generated through the
Finance Act, 2008. The Government has issued a circular which instructs these
institutions and agencies that operate commercially to contribute 10% of their
revenue to the consolidated fund. Therefore, it is anticipated that contribution to the
Government coffers will improve gradually.
213. Achievements: During the period under review, notable achievements have
been realized. These include:
(i) Increased productivity and improved performance of some enterprises such
as TCC, TBL, ZAIN, NMB, NBC, Aluminium Africa, Twiga Cement and Tanga
Cement;
(ii) Increased revenue flows to the public coffers through dividends, receipt of
taxes and privatization proceeds ;
(iii) Increased value of Government investments in public enterprises from Tshs
5.1 trillion in 2007/08 to Tshs. 6.4 trillion in year 2008/09;
(iv) Improved services delivery and quality products by good performing
enterprises;
(v) Use of improved modern technology to privatized public enterprises;
(vi) Empowerment of indigenous to acquire ownership in privatized enterprises;
(vii) Establishment of a new Public enterprise Management Services to enhance
and increased efficiency in scrutiny of public Institutions‟ organization
structure, schemes of service, and personal emoluments before and after
budget as a way to improve public finance management; and
(viii) Improved financial management accountability on public institutions; for
example, there is a reduction in an average lag period of submission of
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audited financial statements from four years to a year by comparing the
position as at 30th June 2006 and 30th June 2009.
Challenges
214. Despite the aforementioned achievements, the following challenges need to
be addressed:
(i) Reducing budgetary burden on the Government to economically non-viable
institutions;
(ii) Ensuring that public enterprises that have been diversified continue to meet
the intended objectives for which they were established;
(iii) Sustaining the public enterprises divestiture momentum in light of coming to
an end of the Project on Privatization and Private Sector Development which
supported the parastatals divestiture process;
(iv) Effective oversight of parastatals and Government Institutions;
(v) Conflicting legislations establishing and governing operations of public
institutions ;
(vi) Capitalization of the remaining public institutions and strategic joint ventures ;
(vii) Controlling the ever rising and competing levels of salaries and remunerative
allowances paid to staff and board members of public enterprises thus
becoming a lasting drain to public resources and unnecessary burden to the
taxpayer; and
(viii) Strengthening the internal management of public institutions including the
oversight role of Boards over Management.
Way Forward
215. In collaboration with CHC, the post privatization monitoring exercise will
continue to be undertaken and where necessary corrective measures will be
executed. The aim is at most to tap the benefits from the divestiture of the Public
enterprises.
216. To enhance mechanism for scrutinization of funds demand by parastatals in
terms of capital and debts settlements by ensuring that project viability is
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determined beforehand in line with the most priority areas outlined in these
guidelines. Also, control growth of contingent debts stock and arrears in contractual
debts in order to accrue the long term socio-economic benefits.
217. To enhance scrutinization mechanism of public institutions‟ organization
structure, schemes of service and salary structure to attain timely, accurate, and
rationalized pay structure to the public institutions. Further, early steps would be
taken by the Government to keep in check and harmonize the levels of salaries and
allowances paid to staff and board members of public enterprises having regard to
the performance of the economy.
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CHAPTER SIX
THE MEDIUM- TERM PUBLIC INVESTMENT PLAN
218. This chapter presents a summary of the Medium Term Public Investment Plan
(MPIP) 2010/11 – 2014/15, which the Government intends to set out economic
investment priorities needed to realize the medium term vision of unlocking
Tanzania‟s Growth Potentials – a Better Life for All through strategic investment in
physical infrastructure that will stimulate economic growth. Further to that, the Plan
seeks to guide public investments into strategic areas of intervention to achieve the
national development agenda as enunciated in the National Development Vision
2025. The primary focus of MPIP is on development of physical infrastructure, an
area which is known to have serious market failures. In view of this, prioritization
for the MPIP is directed towards improvement of transport and communication
infrastructure; energy and power supply; water harvesting infrastructure for
irrigation and “Kilimo Kwanza”; industrial parks and commercial areas development;
and making Tanzania a logistical hub for fuel distribution. Other focus areas include
use of natural resources to leverage the development of the physical infrastructure;
skills development; land-use planning as well as urban infrastructure development to
address current and future supply constraints of an expanding economy. These are
broad key priority areas extracted from the main MPIP Document for implementation
over the medium term.
Tanzania Development Path to realization of Vision 2025
219. Looking at the long term development picture as depicted by the Vision 2025,
the economy is still a long way to attain the key milestones. The Vision anticipated
that by the year 2025, the economy would grow to a middle income level status with
per capita income of US$ 2500. A quantitative and qualitative assessment of the
progress reached so far indicates that, GDP has registered a steady growth,
averaging 6.8 percent per annum over the past nine years.
220. The projections using Macro-economic Modeling (MACMOD) indicate two
growth scenarios for Tanzania‟s development path; comparing growth in per capita
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income “with” and “without” MPIP intervention. The “without”, that is business as
usual scenario, indicates that the per capita income would maximally grow to at
most US$ 870 by 2015. Whereas, the „with‟ MPIP interventions scenario, the per
capita income would grow- up, close to US$ 1,300 by 2015. The divergence would,
however, further widen as year 2025 is approached. It should be noted however
that the current per capita income is less than US$ 500. The figure below
exemplifies the two scenarios of per capita growth up to 2015.
Figure 6.1: Tanzania’s Envisaged Development Path, 2010/11- 2014/15
Per Capita Income With & Without MPIP Intervention
0
200
400
600
800
1000
1200
1400
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Years
US
Do
lla
rs
Per Capita in UD Dollars (With MPIP intervention)
Per Capita in UD Dollars (Without MPIP intervention)
Source: MoFEA
The Rationale for the MPIP
221. The MPIP has been formulated to address the inherent weaknesses of the
current practice for preparation and implementation of public investment plans. The
registered weaknesses include; absence of clear guidance for identification,
appraisal, selection, monitoring, reporting and performance accountability. As such,
identified projects and programmes are hardly commensurate with the priorities to
the realization of the country‟s development agenda as they are not centrally
determined. Projects and programmes are submitted to the central ministries only
as „fait accompli‟ for adoption and for seeking financing for their implementation
114
without subjecting them to any rigorous tests as to whether they meet the overall
objective criteria and consistency for attaining Vision 2025.
222. In particular, this Plan seeks to significantly remove infrastructural bottlenecks
so as to catalyse sustainable economic transformation and enhance the country‟s
international competitiveness. Thus MPIP aims to accomplish the following:-
(i) Bring about greater realignment between the various policies and
programmes;
(ii) Prioritise interventions that have strong synergies and complementarities;
(iii) Galvanise concerted efforts in order to optimise the allocation and sequencing
of public expenditure;
(iv) Provide pro-active indicators for private investors to take initiatives that will
enable them to realign their programmes with government development goals
and anticipated benefits; and
(v) Promote private sector growth by removing inherent costs which currently
make Tanzania a fragile and costly business destination and, therefore,
uncompetitive.
Objectives of the Plan
223. The overall development objective for the Medium - Term Public Investment
Plan is to accelerate broad-based economic growth, shift Tanzania from the current
production frontier to a higher level, and reduce income poverty through investment
in physical infrastructure. More specifically, the strategic objectives of the Plan over
the next five years , will be in the following investment priority areas:
(i) Rehabilitation of existing and construction of new transport and
communication infrastructure (railways, roads, ports, airports and ICT) to
make Tanzania a transportation hub and international trade gateway;
(ii) Generation, transmission and distribution of low cost energy to attract
efficiency seeking industrial and commercial investment capital;
(iii) Rehabilitation and development of new irrigation infrastructure to attain food
self sufficiency and make Tanzania a grain reserve and source of industrial
feedstock in the region;
115
(iv) Effective utilization of the country‟s mineral wealth and leverage its gain for
the development of infrastructure;
(v) Improvement of the current labour force to acquire the necessary skills for
technological and industrial revolution and thus be able to compete globally;
and
(vi) Carrying out land-use planning to anticipate potential investor requirements
as well as developing urban infrastructure to address current and future
supply constraints of an expanding economy.
Strategic Interventions for the Medium Term
224. In view of the above strategic and priority areas of interventions MPIP has
recommended a set of specific projects in each area, for the next five years.
Transport Network – Roads
225. The objective is to make Tanzania more competitive to the rest of the region
through strengthening and expanding road network and thus stimulating trade and
investment particularly looking at advantage of inter and intra regional trade and
integration of markets for effective demand and economies of scale. Proposed
projects for intervention during the next five years will be on the construction of the
following roads:
(i) Sumbawanga – Mpanda - Kanyani Road (497 KM);
(ii) Kanyani – Nyakanazi Road (265 KM);
(iii) Bagamoyo _Sadaan- Tanga Road (178KM);
(iv) Dodoma – Babati Road (263 KM);
(v) Manyoni - Itigi – Tabora- Nzega (365 KM);
(vi) Itoni – Mchuchuma (250 KM);and
(vii) Kigoma(Kidahwe)- Malagarasi-Kaliua-Urambo-Tabora (464km).
Transport Network - Railways
226. The current situation in the two lines necessitates major changes and requires
strategic investment to revamp the lines to normal capacity. Concerted efforts will be
undertaken to improve efficiency and eventually competitiveness of the two railway
116
lines, including providing optimal rolling stocks. More specifically, over the medium
term, MPIP will concentrate on:
(i) Upgrading the central railway line to standard gauge in conformity with
regional standard gauge;
(ii) Upgrading of sections along the Northern railway network;
(iii) Carrying out a feasibility study of the Arusha - Musoma railway line;
(iv) Construction of railway- linking the proposed Mwambani port;
(v) Improving the TAZARA Line: rehabilitation of bridges, culverts, tunnels;
(vi) Construction of the Isaka- Kigali railway line.
Transport Network – Ports
227. The primary goal is to strengthen and expand the existing ports and make
them more efficient. Focus will therefore be directed towards:-
(i) Conversion of berths number 13 and 14 to handle bulk carriers at the Dar
es Salaam Port;
(ii) Dredging of Dar Es Salaam Port entrance channel;
(iii) Establishment of Cargo Freight Stations/Dry Ports;
(iv) Development of deep berth at Mwambani, Tanga; along with the Arusha -
Musoma Railway;
(v) Mtwara Port upgrading;
(vi) Kigoma Port development; and
(vii) Mwanza Port Development.
Transport Network – Airports
228. The objective is to improve performance of the existing strategic airports by
expanding and upgrading the necessary facilities, in order to attract tourists,
stimulate trade and investment. Proposed intervention projects over the medium
term will be on the following:
(i) Dar Es Salaam: JK Nyerere International Airport: construction of a new
terminal (Terminal III);
(ii) Songwe International Airport: finalization of work;
117
(iii) Mwanza International Airport: extension of runway along with construction
of new terminal and revitalization of cargo handling equipment;
(iv) Kigoma Airport: rehabilitation and upgrading of pavements to bitumen
standards to cater for the operations of B737 Series or equivalent; and
(v) Tabora Airport: rehabilitation and upgrading of pavements to bitumen
standards and construction of new terminal building, including all
associated infrastructure.
Communication - ICT
229. The main thrust here is to improve and expand communication networks,
hence making Tanzania more competitive to the rest of the world. The medium term
strategic intervention will focus on the following:
(i) Development of reliable state of the art ICT infrastructure of adequate
capacity, high-speed and country- wide coverage; and
(ii) Increase the size and quality of the domestic ICT-skilled human resource
base, in line with emerging employment and investment opportunities.
Low Cost Energy and Power Supply
230. The main objective is to bolster trade and investment by providing quality and
reliable power which is also affordable for industries and commercial services. In the
medium term, efforts will be directed towards:
(i) Doubling power generation capacity to enhance power availability, reliability
and security; and
(ii) Enhancing Tanzania‟s international trade share through connecting the
National Grid with neighbouring countries; and
(iii) Ensuring Tanzania has the least cost power supply in the region so as to
attract efficiency seeking investments.
Utilization of Natural Resource to Leverage the Infrastructure
231. Maximization of benefits from the rich natural resources particularly minerals
by enhancing its share and ploughing- back the obtained benefits for the
118
development of the infrastructure required to anchor industrialization and the
country‟s competitiveness. Deliberate efforts will be made to enhance human
resources and institutional capacities to efficiently manage this vital sector and
attracting investment in value- adding activities. The medium term strategic
intervention will focus on the following:
(i) Completing exploration studies of currently known mineral deposits to enable
beneficial procurement and award of contracts for extraction of industrial
minerals; and
(ii) Promoting establishment of domestic mineral based value adding activities.
Industrial Transformation
232. Provision of basic facilities to selected industrial parks served with adequate
supportive infrastructure for efficient production and international competitiveness
by 2015. More specifically, focus will be on the following:
(i) Demarcate areas for development of industrial parks;
(ii) Provide off site supportive infrastructure for at least 10 industrial parks for
agro-processing, textile and apparels, meat and food packaging, assembly,
and lapidary; and
(iii) Effective promotion of the industrial parks to attract prospective investors
Fuel Distribution
233. The objective is leveraging Tanzania‟s strategic geographical location to
become the regional logistical hub for fuel distribution with the landlocked
neighbouring countries. Proposed set of intervention over the medium term will be
on the following:
(i) Provision of land parcel for the construction of 1100 km pipeline from Dar es
Salaam to Mwanza with an extension to Kigoma;
(ii) Establishment of an oil refinery facility at Kigamboni, Dar es Salaam;
(iii) Construction of critical tributaries for efficient oil distribution in the local
market; and
(iv) Establishment of a fund to enable the Tanzania Petroleum Development
Corporation to start bulky oil procurement.
119
Irrigation Infrastructure
234. The thrust is to fully utilise the irrigation potentials available to support
economic transformation and industrialisation, such as agro-processing industries
focusing on investing in the identified areas with high irrigation potential of 2.3
million hectares. These include: Kilombero Valley Irrigation Scheme; Segeni
Irrigation Scheme; Madibira II Smallholder Irrigation Scheme; Luiche as well as Lake
Tanganyika Irrigation Basin. The centrepiece of the Green Revolution through
“Kilimo Kwanza” is irrigation to make Tanzania the hub of food and grain reserves
and industrial feedstock in the region.
Skills Development
235. The objective is to redress skills challenges, focusing on improving skills
imparting techniques, as well as, establishing new and expanding intake capacities
for the present institutions along with upgrading their training competences. .
Proposed intervention over the medium term will be on the following:
(i) Doubling enrolment capacities in science and technology polytechnics and
vocational training colleges by improving facilities and strengthening
secondary schools for talented students;
(ii) Assessing and identifying most scarce skills needed by the domestic and global
market such as in IT, oil and mineral exploration and extraction, irrigation and
construction engineering; etc.; and thus supporting them through specialized
short and long courses domestically and abroad;
(iii) Improving and expanding infrastructure in research, science and technology
aimed at developing new ideas, products and services competitively. In this
context, activities will involve establishing science parks/centres and strategic
scientific laboratories and also rationalising existing research, science,
technology and innovation facilities; and
(iv) Establishing a special Fund for supporting new technological research
inventions across sectors in the country.
120
Land Use Planning and Urban Infrastructure Improvement
236. The main thrust is to enhance country‟s capability for land use management
and easing availability of planned and services plots for industrial and human
settlements. Set of proposed interventions over the medium term include;
(i) Preparing comprehensive national, district and village land use plans;
(ii) Enhancing the availability of surveyed plots for human settlements and
industrial/commercial parks ; and establishing a land bank; and
(iii) Preparing comprehensive plans to modernise and enhance management of
Dar Es Salaam, Mwanza, Mbeya, and Arusha cities with land reserves for
provision and expansion of basic infrastructure and encouraging satellite
towns.
MPIP Implementation Framework
237. A key distinguishing feature of MPIP is the adoption of the spatial
development corridors approach. The new paradigm of socio-economic development
through corridors is being ushered in Tanzania to maximize opportunity- based
planning. Experience from other countries shows that this approach helps in
realigning and rationalizing the implementation of priority projects taking into
consideration potentials obtaining in each development corridor.
238. To take advantage of the spatial development approach, the country has
been mapped into four distinct clusters of development corridors, namely East- West
Development Corridor Cluster; North- South Development Corridor Cluster; TAZARA
Development Corridor; and Complementary/Supportive Development Corridor
Cluster. In this context, projects and programmes with synergies and
complementarities located along the various corridors will be implemented
simultaneously; or sequenced in phases depending on the available resources
envelope. The objective is to get the maximum benefit out of the various projects
and programmes to avoid duplication of efforts and resources. The potentials in the
different development corridors and proposed projects for the MPIP is indicated in
Map 1 below:
121
#
KENYA
UGANDA
RWANDA
ZAMBIA
MALAWI
BURUNDI
MOZAMBIQUE
DEMOCRATIC
REP. OF CONGO
TANGA
LINDI
MBEYA
KILIMANJARO
MTWARA
KIBAHA
IRINGA
RUVUMA
TABORA
ARUSHA
MUSOMA
MWANZA
KAGERA
MANYARA
SINGIDA
UNGUJA
MOROGORO
ZANZIBAR
SHINYANGA
RUKWA
PEMBA
KIGOMA
DAR ES SALAAM
Lak
e Tang
any ika
La
ke N
y as
a
Lake Victoria
I N D
I A N
O C
E A
N
MAFIA
L. Rukwa
L. Eyasi
L. Manyara
1
2
3
2
1
3
4
1
2
3
4
Mbamba Bay
Nyakanazi
Lusahunga
Horohoro
Kasanga
Namanga
Isaka
Tunduma
Gre
at Ruaha R
iver
Rufiji River
Wmi R
iver
Ruvuma River
Mala
g al a
s i R
iver
Little R
uaha River
MPIP DEVELOPMENT CORRIDORS
Internat iona l Bounda.y
Water Body
Railway L ine.
Der Es Salaam - Tunduma
Tanga - Musoma
Mwanza - Mbeya
Mtwara - Kasanga
Horohoro - Mtwara
Namanga - Mbeya
Dar Es Salaam - K igoma
Kagera - Tunduma
Lake victoria circu it.
Sumbawanga - Tabora.
Isaka - Lusahunga.
Babati - S ingida - Tabora.
Major-rivers.
LEGEND
EAST - WEST CO RRIDORS
NORTH - SOUTH CORRIDORSCLUSTER CORRIDORS TAZARA CORRIDOR
1
2
3
1
2
3
4
2
1
4
3
Projects Selection Criteria
239. The implementation of MPIP projects in the various development corridors
will, to a large extent, depend on the project synergies and complementarities where
the greatest opportunities can be realized. Project inclusion in the government
budget is subjected to a thorough assessment of the project i.e. their feasibility,
estimated costs, potential impact and their sustainability.
The Treasury will play a pivotal role in scrutinizing all public investment proposals by
undertaking detailed economic analysis including due diligence to project locations
122
so as to justify investments using agreed objective criteria before committing
resources. The following are the main project selection criteria derived from the
current practice and other countries‟ experiences which will be used to justify public
investments:
(i) Projects must be identified from the prioritized MPIP corridor clusters;
(ii) All projects need to have specific milestones during the 5 years MPIP
implementation;
(iii) Each project must have a detailed economic analysis/feasibility study;
(iv) All projects ought to have at least 10 percent Economic Rate of Return (ERR);
(v) All projects have to emanate from national/sector strategies and master plans
approved by the Government; and
(vi) All projects must have Environment Impact Assessment (EIA).
240. MPIP is designed to be implemented within the existing institutional
framework to enable sector ministries, government agencies, local authorities,
development partners, contractors and consulting firms, civil society organizations,
and beneficiaries at large to participate effectively. The Ministry of Finance and
Economic Affairs (MoFEA) will be the overall coordinator in collaboration with the
President‟s Office, Planning Commission in the implementation of the MPIP. In order
to steer implementation of the MPIP as scheduled, a Steering Committee composed
of key MPIP permanent secretaries will be set up. The delivery of identified projects
will be managed by sector line ministries and implementing agencies, with their
respective responsibilities clearly delineated. They will also be responsible for setting
workable monitoring and evaluation systems for tracking outputs and outcomes of
MPIP.
Financing MPIP
241. A critical challenge to the implementation of MPIP is the mobilization of
adequate financial resources to scale-up investment envelop required in identified
strategic areas for the supply structure transformation and growth. In this particular
123
context, the total investment outlays for MPIP over the next five years is estimated
at shillings [23,802,222] million, of which shillings [6,199,132] million or [26.0]
percent, is to come from government sources per se, equivalent to shillings
[1,239,826] million per annum. This is essentially what is meant by public
investment plan so as to stimulate other players to come in line with the government
objectives and development priorities of the time. The remaining portion to the total
required financial resources has to come from other players in the economy, the bulk
of which to be contributed by the private sector, either through Private Sector
Financing Initiatives (PFIs) or Public Private Partnerships (PPPs).
124
CHAPTER SEVEN
MEDIUM TERM OBJECTIVES AND FOCUS
242. This chapter dwells on the assumptions underlying the macro economic
projections and policy targets for the medium term 2010/11-2012/13. As noted in
Chapter One, the Tanzania economy is still reeling from the negative impacts of the
global economic recession and the prolonged drought. In this regard, the emphasis
for the next Medium term period will be in line with the Vision 2025, MDGs,
MKUKUTA II, MPIP, Sector policies, and the CCM Election Manifesto of 2005. The
main focus will be on the few selected priority areas which will accelerate economic
growth and support the government thrust of KILIMO KWANZA with the view of
reducing poverty in the country.
Macroeconomic Assumptions and the Medium Term Outlook
Macroeconomic Assumptions
243. In the medium term (2010/11-2012/13) key assumptions underlying
macroeconomic projections and policy targets are as follows:
(i) The impact of the Global Economic Recession which affected the economy in
2009 will be contained;
(ii) Macroeconomic stability will be sustained and socio-economic development will
continue to improve;
(iii) The National priority areas as stipulated in this chapter and MPIP priority
projects will be implemented;
(iv) Realization of MKUKUTA II outcomes;
(v) There will be favourable weather condition
(vi) ASDP objectives will be attained;
(vii) Private sector will participate effectively in investment including in Kilimo
Kwanza;
(viii) Monetary policy framework will be consistent with macroeconomic objectives;
(ix) Domestic revenue collection efforts will be enhanced;
125
(x) Monitoring and Evaluation of effective use of public resources will be
strengthened; and
(xi) Political stability, peace and tranquillity will be maintained.
Sectoral Assumptions and Outlook
244. The Agricultural economic activity: In the medium term Agriculture
economic activity is expected to pick up to 4.7 percent mainly on the assumption
that world economy will recover, and government interventions on transforming
subsistence farming to commercial farming through emphasis on productivity and
tradability will be implemented. The proposed interventions under Kilimo Kwanza are
in the areas of rural roads and markets improvement, irrigation infrastructure, the
establishment of Agriculture Bank, community banks and the enhancing the window
for agricultural credits at TIB are expected to boost agriculture performance in the
foreseeable future. In addition, the momentum in the implementation of ASDP will
be increased.
245. Livestock: The growth for livestock sub sector is expected to decline by 2.5
percent in 2009 from 3.7 percent in 2008. The decline is driven by unfavourable
weather conditions, inadequate infrastructure, inadequate investment in the sub
sector, and inadequate capacity of farmers to apply modern livestock keeping
practices. The underlining assumptions in the medium term are that the
infrastructure for the existing livestock farmers will be improved.
246. Fishing: During the medium term the fishing activities are expected to pick
up to 4.6 percent by 2011 and maintain upward trend thereafter. This is due to the
Government's efforts to modernize technologies used in fishing activities,
implementation of supply-and demand enhancing sector policies, and curbing illegal
fishing practices. These efforts are expected to increase fish production, demand for
fish and fish products in both domestic and foreign markets in the medium term.
247. Industry and construction economic activities: The economic activities
are projected to maintain an annual average growth rate of 8.7 percent in the
medium term. Growth of the sector is expected to accrue from all of its sub-
126
activities. In particular, manufacturing sub activity is expected to be maintained
following Government interventions in energy, agriculture and infrastructure.
248. The construction sub activity is expected to grow by 6.3 percent in 2009
compared to 10.5 percent in 2008. The decline is due to slow down in construction
activities in anticipation of the impact of the GER. The sub-activity is expected to
maintain an annual growth of 10.6 percent in the medium term largely due to
increased infrastructure developments, including roads and bridges, water supply
projects, construction of commercial, residential and non-residential buildings.
249. The electricity and gas: The sub-activity is projected to grow at 3.0
percent in 2009 compared to the actual rate of 5.4 percent in 2008. In the medium
term, the growth is expected to sustain at an average rate of 5.3 percent. This
follows the concerted efforts by the government to implement measures aimed at
addressing the power crisis by installing additional gas-based to complement the
hydro-based power generation capacity, and also anticipation of generating a total
of 2,858 MW over the medium term.
250. The services economic activity is projected to grow at an average of 6.2
percent in the medium term. This will result from the increased export promotion
initiatives, establishment of new hotels, improvements and scaling-up of investments
in transport and communication infrastructures. The activity will also be bolstered by
expansion of education and health services, increased demand for financial
intermediation and sustained implementation of public service reforms.
Macroeconomic Projections and Policy Targets
Monetary Development
251. Monetary projections are set around the following key assumptions:
(i) Money velocity is projected to slow down in 2009/10 and maintain a gradual
path in the medium term following the implementation of the ongoing broad
based financial sector reforms;
127
(ii) The M2 multiplier is expected to slow down gradually reflecting the effect of
changes in the Statutory Minimum Reserve (SMR) which was made in January
2009;
(iii) Credit to private sector is expected to increase reflecting the impact of the
Government‟s „Rescue Plan‟, ongoing financial sector reforms (Credit
Reference System) and MKUKUTA II; and
(iv) The level of international reserves is expected to continue picking up in
2010/11 due to the increase in foreign inflows.
Inflation
252. Inflation rate is expected to slow down to below 10 percent in June 2010 and
decline further to a single digit by December 2010 on assumption that food supply
will stabilize, exchange rate will remain stable and prudent monetary and fiscal
policies will prevail.
253. The macroeconomic projections and policy targets for the period 2010/11 –
2012/13 are as follows:
(i) Attain a real GDP rate of 6.1 percent in 2010, 6.6 percent in 2011, 7.1 percent
2012 and 7.6 percent by 2013;
(ii) Holding inflation below 10 percent by end-June, 2010;
(iii) Domestic revenue collection is projected at 14.7 percent in 2010/11,14.8
percent in 2011/12 and 15.0 percent in 2012/13;
(iv) Maintaining annual growth rate of M3 and M2 at 23.9 percent each by end
June 2010;
(v) Maintain a market determined realistic exchange rate, with Bank of Tanzania‟s
interventions exclusively limited to smoothing wide fluctuation and /or liquidity
management purposes; and
(vi) Maintain adequate official foreign reserves sufficient to cover a minimum of
five months worth of imports of tradable goods and non-factor services.
128
Table 7.1: GDP Growth (Actual and Projection)
ACTUAL PROJECTIONS
ECONOMIC ACTIVITY 2005 2006 2007 2008 2009 2010 2011 2012 2013 Agriculture, Hunting and Forestry 4.32 3.81 4.02 4.55 2.72 3.96 4.56 5.34 5.69
Crops 4.38 4.04 4.50 5.10 2.89 3.95 4.64 5.58 5.87
Cash Crops -3.65 -2.90 8.23 6.91 3.76 1.39 6.54 8.95 9.19
Food Crops 5.58 4.99 4.03 4.86 2.77 4.30 4.39 5.13 5.41
Livestock 4.40 2.36 2.40 2.60 2.51 4.05 4.41 4.74 5.22
Hunting and Forestry 3.60 4.60 2.90 3.40 1.61 3.85 4.12 4.28 4.95
Fishing 6.00 5.00 4.47 5.00 2.97 4.56 4.62 4.54 4.94
Industry and construction 10.37 8.49 9.46 8.61 5.57 7.73 8.81 9.69 10.33
Mining and quarrying 16.14 15.59 10.72 2.50 2.01 3.97 8.38 10.85 11.44
Manufacturing 9.62 8.50 8.73 9.90 6.63 8.35 8.85 9.17 9.46
Electricity, gas 9.35 -1.85 10.90 5.40 2.99 5.64 7.71 9.38 11.23
Water supply 4.32 6.20 6.50 6.60 4.99 6.33 9.32 11.19 13.32
Construction 10.10 9.48 9.70 10.50 6.29 8.97 9.20 10.00 10.71
Services 8.00 7.85 8.15 8.54 5.97 6.51 6.67 6.81 7.18
Trade and repairs 6.66 9.50 9.80 10.00 6.80 7.44 7.46 7.25 7.48
Hotels and restaurants 5.65 4.32 4.43 4.50 1.88 6.17 6.56 7.07 8.06
Transport 6.69 5.26 6.50 6.90 5.22 7.39 7.34 7.64 8.22
Communications 18.76 19.23 20.10 20.50 13.52 14.10 13.80 12.60 12.57
Financial intermediation 10.78 11.39 10.21 11.88 7.43 8.07 7.81 7.74 8.07
Real estate and business services 7.52 7.27 7.00 7.10 4.92 5.99 6.24 6.30 6.62
Public administration 11.43 6.46 6.72 7.00 5.18 2.22 2.87 3.92 4.28
Education 4.00 5.00 5.50 6.90 5.30 6.78 6.31 5.94 6.30
Health 8.06 8.53 8.80 9.00 6.91 6.98 6.40 6.29 6.63
Other social and personal services 2.63 3.67 3.16 3.10 2.60 4.68 4.22 4.84 5.60 Gross value added before adjustments 7.41 6.82 7.26 7.46 5.01 6.12 6.62 7.10 7.55
less FISIM 11.75 14.89 15.30 11.00 7.58 6.23 7.14 7.07 7.59 Gross value added at current basic prices 7.37 6.73 7.17 7.41 4.97 6.12 6.61 7.10 7.55
add Taxes on products 7.41 6.82 6.90 7.75 5.66 6.12 6.61 7.10 7.55
GDP at market prices 7.37 6.74 7.15 7.44 5.02 6.12 6.61 7.10 7.55
129
Table 7.2: Shares to Overall GDP (Percentage)
SHARE OF GDP ACTUAL PROJECTIONS
ECONOMIC ACTIVITY 2005 2006 2007 2008 2009 2010 2011 2012 2013 Agriculture, Hunting and Forestry 27.6 26.2 25.8 25.7 25.0 23.9 23.0 22.1 21.3
Crops 20.5 19.2 19.0 19.0 18.5 17.7 17.0 16.5 16.0
Cash Crops 2.5 2.2 2.0 2.2 1.7 1.6 1.7 1.8 1.9
Food Crops 18.0 17.0 17.1 16.8 16.7 16.0 15.4 14.7 14.1
Livestock 5.0 4.8 4.7 4.7 4.7 4.5 4.3 4.1 3.9
Hunting and Forestry 2.2 2.2 2.1 2.0 1.9 1.8 1.7 1.6 1.5
Fishing 1.4 1.3 1.3 1.2 1.5 1.4 1.4 1.4 1.3
Industry and construction 20.8 20.8 21.2 21.0 20.8 21.3 21.8 22.5 23.2
Mining and quarrying 2.9 3.2 3.5 3.4 2.5 2.4 2.3 2.3 2.4
Manufacturing 7.9 7.8 7.8 7.8 9.2 9.6 10.1 10.6 11.0
Electricity, gas 1.7 1.5 1.6 1.7 2.0 2.0 2.0 2.0 2.1
Water supply 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Construction 7.8 7.8 7.8 7.7 6.7 6.8 6.9 7.1 7.3
Services 42.5 43.3 43.3 43.8 45.0 45.7 46.1 46.3 46.5
Trade and repairs 11.0 11.4 11.5 11.6 12.0 12.4 12.6 12.8 12.9
Hotels and restaurants 2.5 2.6 2.7 2.6 2.2 2.2 2.2 2.2 2.2
Transport 4.4 4.3 4.2 4.2 5.0 5.2 5.4 5.7 5.8
Communications 1.7 2.1 2.3 2.5 2.5 2.7 2.8 3.0 3.1
Financial intermediation 1.7 1.7 1.6 1.6 1.9 2.0 2.0 2.1 2.2
Real estate and business services 9.5 9.6 9.5 9.6 9.9 10.1 10.3 10.3 10.4
Public administration 8.0 8.0 7.9 8.2 7.8 7.4 7.0 6.7 6.3
Education 1.6 1.5 1.4 1.3 1.8 1.8 1.8 1.9 1.8
Health 1.5 1.5 1.6 1.5 1.4 1.4 1.3 1.3 1.2
Other social and personal services 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 Gross value added before adjustments 92.3 91.7 91.6 91.6 92.3 92.3 92.3 92.3 92.3
less FISIM -0.9 -0.9 -1.0 -1.0 -1.2 -1.2 -1.2 -1.2 -1.2
Gross value added at current basic prices 91.4 90.7 90.7 90.6 91.1 91.1 91.1 91.1 91.1
add Taxes on products 8.6 9.3 9.3 9.4 8.9 8.9 8.9 8.9 8.9
GDP at market prices 100 100 100 100 100 100 100 100 100
Medium term priority areas
254. During the medium term, the Government will focus on selected national
priority areas of high impact which will bring quick results and accelerate economic
growth. Basing on the country‟s main focus on transforming agriculture, the selected
priority areas are considered to have a direct linkage to KILIMO KWANZA. The
selected areas are Agriculture, Infrastructure and Communication, Energy,
Land management, and Manufacturing. Other areas will be funded according to
their priorities which are expected to have multiplier effect to the economy.
255. The criteria for selecting priorities for 2010/11- 2012/13 include areas which:
have multiplier effects to the economy such as value addition across a range of
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other sectors; provide opportunities on job creation like agriculture which employs
over 80 percent of the Tanzanians; increase productivity across economic agents;
widen tax base and generate more domestic revenues; attract foreign direct
investments; and sustaining macroeconomic gains.
Agriculture
Crops
Major areas of intervention during the medium term will be on the following:-
(i) Facilitating production of breeder seeds and improved seed multiplication;
(ii) Providing targeted subsidies on agricultural inputs including fertilizers to
farmers;
(iii) Strengthening control of crop outbreak pests and diseases;
(iv) Promoting mechanization technology in farming practices such as tractors,
power tillers and ox-drawn ploughs;
(v) Providing extension services by ensuring training and recruitment of extension
officers, and improving their working environment;
(vi) Strengthening agriculture research and training institutions;
(vii) Spearheading establishment of Agricultural Development Bank;
(viii) Strengthening sanitary and phyto-sanitary services;
(ix) Strengthening cooperative development through cooperative reform and
modernization program (CRMP);
(x) Promoting pre and post harvest management technology; and
(xi) Coordinating and monitoring food security situation in the country and
building the nation‟s capacity to store food through the National Food Reserve
Agency and community level storage facilities.
Livestock
Major areas of intervention during the medium term will be on the following:-
(i) Strengthening Livestock extension services and research on high yielding
animal breeds;
(ii) Providing targeted subsidies on livestock inputs;
(iii) Promoting investment in the livestock sector;
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(iv) Continuing with construction and rehabilitation of livestock infrastructure such
as dams, cattle dips, abattoirs and markets; and
(v) Improving access to artificial insemination services and animal breeds.
Fisheries
Major areas of intervention during the medium term will be on the following:-
(i) Preventing and combating illegal fishing and improving fish breeding
environment;
(ii) Improving fishing infrastructure including construction of fish receiving stations
and cold storage facilities;
(iii) Promote fish farming and strengthening aquaculture production and services
(iv) Improving collection, processing and dissemination of fisheries information;
and
(v) Promote investment in the fisheries sector.
Irrigation and water infrastructure
Major areas of intervention during the medium term will be on the following:-
(i) Develop three National irrigation schemes of Kisegese (7500 hectares) Chita
Mgonya (17,000 hectares) and Mpanga Ngalimila (31500 hectares) in
Kilombero;
(ii) Construction of irrigation infrastructure in Government Seed farms;
(iii) Rehabilitation and expansion of existing irrigation schemes;
(iv) Drilling boreholes for irrigation purposes;
(v) Construction of water reserve dams in strategically selected areas to be used
for irrigation during dry seasons;
(vi) Development of Kidunda and Farkwa Dams for improvement of Dar Es Salaam
and Dodoma Water Supply;
(vii) Development of Kimbiji and Mpera ground water for improvement of Dar Es
Salaam water supply;
(viii) Construction of water supply schemes in 10 villages in each district; and
(ix) Reviving and operationalizing non functioning irrigation schemes.
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Education
Government will continue to improve education service delivery through
implementation of National education programs. During the medium term, the focus
will be on the following areas:-
(i) Strengthening supervision and monitoring of PEDP and SEDP in councils;
(ii) Promoting information and communication technologies in schools;
(iii) Providing teaching and learning facilities at all levels;
(iv) Addressing issues of education service deliveries in under-served areas;
(v) Promoting sciences including petroleum and nuclear engineering and
Mathematic subjects; and
(vi) Mainstreaming sports development and related policies at schools, wards,
districts, regions and national levels in collaboration with various stakeholders.
Infrastructure and communication
This priority aims at developing and improving Tanzania‟s infrastructural networks in
order to make significant contribution in the economy by connecting the country
with the regional and international transport and communication networks. In order
to increasingly take advantage of the strategic geographical location of the country,
imperatively efforts will be undertaken to expand and improve the international as
well as strategic domestic networks. Major areas of intervention during the medium
term will be on the following:-
(i) Continued with ongoing implementation of signed construction contracts and
those under procurement process;
(ii) Rehabilitation and upgrading of trunk, Regional, Urban and Basic Access
Districts Roads;
(iii) To address problem of traffic congestion in Dar Es Salaam city; (Construction
of Ring roads, traffic management implementing DART, construction of two
flyovers in Dar Es Salaam);
(iv) Rehabilitation and upgrading of Central and TAZARA Railway lines;
(v) Construction of Inland Container Deports (ICDs);
(vi) Construction of new, Rehabilitation and upgrading of existing ports;
(vii) Construction, Rehabilitation, Upgrading and Expansion of Airports;
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(viii) Construction, expansion and equip meteorological weather stations; and
(ix) Development of reliable ICT infrastructure of adequate capacity high speed
and country wide coverage.
Land Management
Major areas of intervention during the medium term will be on the following:-
(i) Establishment of National Network Control Points to facilitate land surveying
and mapping;
(ii) Implementation of National Land Use Framework Plans to include preparation
of integrated District Land Use Framework Plans and other programmes;
(iii) Preparation of Urban Plans for managing urban growth challenges.
(iv) Streamline land laws and procedures; and
(v) Establishment of land information systems.
Energy
In the medium term, focus will be on the following areas:
(i) Construction of two power generation plants at Ubungo, Dar Es Salaam (100
MW) and Nyakato, Mwanza (60 MW);
(ii) Reinforcement of the North-West Grid (construction of the 400 kV
transmission line from Iringa to Shinyanga);
(iii) Implementation of Ruhudji Hydro-power project (358 MW);
(iv) Continue implementation of rural electrification projects through Rural Energy
Fund (REF);
(v) Generation of electric power (300MW) from natural gas at Mnazi Bay;
(vi) Implementation of Kiwira Coal Power project (200MW) and Kinyerezi Gas Fired
Power Plant which is expected to generate 240MW from Songo Songo natural
gas;
(vii) Speeding up implementation of Stieglers Gorge Hydro Power Project
(1,200MW) along Rufiji River Basin; and
(viii) Construction of Dar Es Salaam to Mwanza Oil Pipeline (1200km).
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Manufacturing
Major areas of intervention during the medium term will be on the following:-
(i) Promoting SMEs and supporting the expansion and deepening of value
addition through agro-processing; -Development of Industrial premises/shades
for SME promotion and Development of incubators sites;
(ii) Develop and transfer appropriate, user and environment friendly industrial
technologies including production of farm implements (CAMARTEC, TIRDO and
TEMDO);
(iii) Development of basic industry: – Sponge iron project, Mchuchuma Coal and
Liganga Iron Ore projects and soda ash project- by providing more support to
NDC; and
(iv) Continue with development of Export Processing Zones and SEZ.
Research and Development
Research and development is vital in the economy. Major areas of intervention
during the medium term will be on the following:-
(i) Enhance research in various sectors so as to promote technological innovation
which will increase productivity in production and business;
(ii) Put in place basic research facilities in various sectors;
(iii) Develop mechanism to finance research and development activities; and
(iv) Strengthen cooperation among local researchers and international researchers.
Medium Term Focus in Other Sectors
Health
256. The Government will continue to put more emphasis on the implementation
of Primary Health Service Development Program (PHSDP – MMAM) and other health
sector programs. The focus will be on the following:-
(i) Strengthening District and Social Welfare Services by having; appropriate
Public and Private Health Care facilities/treatment centres, qualified
personnel, High Tech equipments. Dispensary in all villages, Health centres at
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all wards, Hospital – (District, Regional Referral, Zonal Super Specialist),
Social Welfare services for orphans, the disabled and the elderly. Also
improving the environmental (Sanitation/Hygiene), nutrition and Health
Insurance coverage;
(ii) Enhance the quality and access to Maternal, Newborn and Child Health Care,
through provision of qualified health appropriate personnel, equipments;
emergency obstetrics care facilities and transport;
(iii) Improving Human Resources capacity at all levels by increasing enrolment,
recruitment, deployment and retention from dispensary to zonal Super
Specialist Hospital;
(iv) Constructions, rehabilitation and equipping health facilities with basic and
high Tech equipments of appropriate technology, Essential and Special
medicines at dispensary, Health centre, District, Regional Referral and Zonal
Super Specialist Hospital; and
(v) Strengthen Control of communicable diseases (Malaria, TB, HIV/AIDS),
Neglected Tropical Diseases (NTDs) and Epidemics and non-communicable
diseases (NCDs) such as Cancers, Surgical Emergencies, Renal, Cardiac and
Diabetes, by equipping the health system with appropriate services for
prevention, screening, diagnosis, treatment, rehabilitation and providing
appropriate skilled personnel high-Tech Equipments and Essential and special
medicines from Dispensary to Zonal Super Specialist Hospital.
Natural Resources and Tourism
257. In the medium term, the government will focus on the following areas
(i) Strengthening the protection and conservation of forest resources, catchments
areas and nature reserves through eviction of encroachers and strengthen
their boundaries;
(ii) Increasing natural and cultural resources areas under community and private
sector through Scaling up Participatory Forest Management (PFM) and Wildlife
Management Areas (WMA);
(iii) Strengthening cultural centre through improving cultural archives and
information centre;
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(iv) Implementing the Wildlife Conservation Act No.5 of 2009 through enforcing its
regulations on management, protection, conservation and utilization of wildlife
resources;
(v) Improving tourism services through training of tourist service providers, hotel
classification, improve cultural, beach and eco-tourism; and
(vi) Improving revenue collection efforts from natural, cultural and tourism
operations.
Governance and accountability
258. In the medium term, the government will focus on the following areas:-
(i) Maintaining peace, harmony and tranquillity during the General Election;
(ii) Instilling ethics and integrity in professional codes of conduct;
(iii) Strengthening the monitoring of public resources at all levels;
(iv) Enhancing public awareness on strategies to combat corruption;
(v) Strengthening community policing initiatives;
(vi) Improving working and living environment in law enforcers;
(vii) Strengthening anti corruption mechanisms at all levels; and
(viii) Continuing with construction and rehabilitation of court building.
Public Sector Reforms
259. In the medium term, the focus on core Reforms will be on:
(i) Mainstreaming Reform Programmes interventions into MDAs strategic and
operational plans, MTEF and Budgets;
(ii) Involve stakeholders in planning processes;
(iii) Strengthen Institutional M&E and produce timely reports based on results;
(iv) Strengthen coordination and capacity building to all reforms programmes
implementation.
260. Specifically, each reform will be focusing on the following areas:
Public Service Reform Programme II (PSRP)
(i) Manage and implement e-government wide infrastructure to cover the whole
Government;
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(ii) Roll out Human Capital Management Information Systems (HCMIS) for
effective management of human resource in MDAs and LGAs;
(iii) Enhance and strengthen accountability and integrity in the delivery of public
service across MDAs and LGAs;
(iv) Enhance Government capacity to manage policies and programmes by
establishing Public Service Leadership College; and
(v) Improve record management system and codes of good practices including
computerization of record systems across MDAs and LGAs.
Pay Reform
Getting pay reform back on track is crucial to the success and sustainability of the
improvement of public service delivery. In the medium term the government will
focus on the following;
(i) Enhance the capacity of the public service to attract, retain and adequately
motivate personnel with the requisite skills required; and
(ii) Rationalize and harmonize pay across the public service institutions that draw
compensation from Treasury; and
(iii) Fast track the establishment of the Public Services Remuneration Board.
Local Government Reform Programme II (LGRP)
(i) Build capacity at all levels of Local Government to improve leadership and
management in LGAs;
(ii) Review and amend relevant laws to make them D by D compliant;
(iii) Sensitize the public to demand on accountability for service delivering and
resource use;
(iv) Enhance accountability, monitoring and evaluation;
(v) Put in place infrastructure that will increasingly attract and retain qualified
staff in underserved areas; and
(vi) Review the formula based allocation of financial resources to LGAs
Legal Sector Reform Programme II (LSRP)
(i) Review and strengthen M & E framework; and
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(ii) Strengthen capacity of the LSRP institutions;
(iii) Construction of Court of Appeal, High Court centres Primary Courts and
Ministry of Constitutional affairs and Justice Headquarters; and
(iv) Construction of Law school of Tanzania.
National Anti-Corruption Strategy and Action Plans (NACSAP II
(i) Continue building capacity of Integrity Committees, oversight and watchdogs
institutions;
(ii) Continue preventing and combating corruption; and
(iii) Review NACSAP II.
Public Financial Management Reform Programme (PFMRP)
(i) Prepare and implement PFMRP Strategic Plan;
(ii) Continue implementation of PFM Action Plan; and
(iii) Enhance implementation of JAST Action plan and M & E framework.
BEST Programme
(i) Introduction of electronic business registry;
(ii) Harmonisation of sectoral regulatory licenses;
(iii) Revision of administrative and legal procedures in doing business; and
(iv) Implementing the Judiciary ICT strategy.
Second Generation Financial Sector Reform Programme
(i) Reviewing micro-finance policy,
(ii) Public Education Programs for Financial Markets,
(iii) Developing Securities and Payments infrastructure,
(iv) Develop Corporate & Municipal Bonds Market,
(v) Harmonisation of laws establishing various social security funds, and
(vi) Development of institutional framework for operationalization of the Financial
Leasing Act.
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Cross Cutting Issues
General Elections
261. To ensure smooth carrying out the forthcoming General Election slated for
October 2010, focus on preparatory interventions will be on the following areas:
(i) Updating the Permanent National Voter Register;
(ii) Review of the Legal Framework for the elections and translating the electoral
legislations from English to Kiswahili language;
(iii) Voter Education Programme and engagement with other stakeholders;
(iv) Initiating review of boundaries and demarcation of constituencies;
(v) Procurement of extra ballot boxes, seals and result forms;
(vi) Updating of ICT system for election purposes; and
(vii) Capacity building to the media and other key stakeholders.
Gender
262. In the medium term, the focus will be on the following:-
(i) Providing capacity building to Gender Focal Points and Sector Gender
Committees for expediting gender mainstreaming across sectors;
(ii) Continue with mainstreaming gender into policies, plans and strategies at all
levels;
(iii) Conducting sensitization on gender issues including pertinent issues such as
fight against gender violence and reducing women workload; and
(iv) Continue collecting and analyzing gender disaggregated data;
(v) Continue undertaking affirmative action to address gender imbalances in
Economic empowerment and in Social Political areas and accessing higher
education; and
(vi) Coordination of implementation of international and regional agreements on
the rights of women and children.
HIV and AIDS
263. During the medium term, the focus will be on the following:-
(i) Implement HIV and AIDS Prevention Strategy with a focus on the most at risk
populations;
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(ii) Introducing a mechanism which will improve national efforts to finance and
sustain national HIV and AIDS response i.e. Establish AIDS Trust Fund;
(iii) Disseminate, advocate and implement HIV and AIDS Gender strategy and its
action plan;
(iv) Implement system strengthening plan for reporting system (Tanzania Output
Monitoring System on HIV and AIDS -TOMSHA);
(v) Strengthen Regional coordination and supportive supervision; and
(vi) Strengthen participation of civil society organisations at all levels, especially
those led and composed of PLHIVs.
Environment
264. During the medium term, the focus will be on the following:-
(i) Improving the implementation of the Environmental Management Act, Cap
191 through regulations, environment impact assessment, strategic
environmental assessment, preparation of strategy on Urgent Actions for the
Conservation of Marine and Coastal Environment Lakes and Rivers Ecosystem
and Dams and report on the state of the environment; and
(ii) Improving the implementation of the Multilateral Environmental Agreements
(MEAs).
Social Protection
265. During the medium term, the focus will be on the following areas
(i) Enhancing the coordination of programmes addressing the needs of the most
vulnerable groups;
(ii) Ensuring access to education and health services to poor and most vulnerable
people (poor disabled, orphaned and most vulnerable children);
(iii) Ensuring due exemptions of treatment fees for patients over 60 years;
(iv) Enhance awareness among the implementing agents (both private and public
institutions); and
(v) Design indicators to monitor implementation of National Multisectoral Social
Protection Framework (NMSPF).
141
Employment and Economic Empowerment 266. The medium term focus will be on the following areas
(i) Continue to provide awareness on mainstreaming employment and youth
development issues into national policies, plans, and strategies at all levels;
(ii) Formulation and approval of Labour Migration Management Policy;
(iii) Promoting entrepreneurship skills development and self employment
especially among youth and women;
(iv) Promoting accessibility to and extending credit facilities for SMEs particularly
to youth and women;
(v) Finalization and operationalization of Employment Bill and establishment of
Employment Committees at all levels;
(vi) Improve employment performance indicators in Doing Business in Tanzania,
so as to improve business environment;
(vii) Implementation of empowerment activities and enhancing Mwananchi
Empowerment Fund;
(viii) Mainstreaming economic empowerment activities into LGAs plans;
(ix) Initiate negotiations with leadership of Pension Funds to use those funds to
guarantee pensioners to secure loans for investments; and
(x) Reinstate Compulsory National Service Training.
National Identification Project
267. During the medium term, the focus will be on the following (i) Recruiting staff;
(ii) Establishment of technical infrastructure namely web enabled customer
service system; data collection system of birth, death and marriage
registration system;
(iii) Instituting ICT security and maintenance standards;
(iv) Establishing an interfacing among government major systems such as
passport, driving licence, visa, tax payer identification numbers; and
(v) Sensitization of the public on the importance of the project
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National Population Census 2012
268. During the medium term, the focus will be on the following
(i) Continuing demarcation of Enumeration Areas and supervision areas in the
remaining 19 regions;
(ii) Preparations and undertaking of the pilot census, data processing and
analysis; and
(iii) Undertaking the 2012 census.
143
Regional integration
269. During the period 2010/11 to 2012/13, the Government will continue to
consolidate the regional integration initiatives under EAC, SADC, and EPA with
European Union. The objective is to open up more opportunities for gradual
integration of Tanzania into the global economy. More specifically the focus in the
plan period shall be the following:
(i) Prepare strategy for the implementation of EAC fully fledged Customs Union;
(ii) Completion of the establishment of the EAC Common Market which includes
finalizing negotiation on pending annexes, undergoing national ratification
process for the Common Market Protocol and approximation of domestic laws
to give legal force to the Common Market Protocol;
(iii) Development of sensitization/awareness program and national strategy for the
implementation of the EAC Common Market to ensure that Tanzanians benefit
from the opportunities brought by the Common Market;
(iv) Development of National Policy on Regional Integration and Strategy for EAC
Regional Integration to give a clear guidance to Tanzania‟s competitive
advantage, benefits and challenges in the EAC and other regional integration;
(v) Preparation of country position and start negotiation for the establishment of
EAC Monetary Union;
(vi) Finalize preparation for the implementation of a complete SADC Free Trade
Area by 2012 and start negotiations for the establishment of SADC Customs
union;
(vii) Support undertaking of the EAC manpower survey;
(viii) Conclusion of negotiation on Framework Economic Partnership Agreement with
the European Union and negotiate on comprehensive Economic Partnership
Agreement; and
(ix) Construction of the EAC Headquarters in Arusha.
144
Disaster Management
270. During the medium term, the focus will be on the following areas
(i) Prepare strategy for implementing Disaster Management Policy;
(ii) Continue to train stakeholders on the Disaster Management Policy and
sensitise the general public on disaster related issues;
(iii) Establish Regional and District disaster profiles;
(iv) Continue to develop disaster management registers; and
(v) Finalize amendment of the 1990 Disaster Legislation and set up an
Emergency Operation Centre (EOC).
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CHAPTER EIGHT
RESOURCE ENVELOPE AND EXPENDITURE FRAMEWORK
2010/11 – 2012/13
271. The medium term projections for resources and expenditure framework are
based on the assumptions that the government will continue to pursue prudent
macroeconomic policies and that there will be a rebound in domestic economic
activities benefiting from the projected recovery in the global economy. More efforts
will be directed towards increasing domestic revenue collections and mobilization of
external resources.
272. The projected revenue collection indicates a slight improvement owing to the
anticipated recovery in the global and domestic economies. Revenue to GDP ratio is
projected at 15.5 percent in 2010/11 and increase slightly to 16.1 percent by
2012/13. In the medium term, the government will continue to widen the tax base,
improve tax administration and enhance efficiency in the tax system.
273. The medium term government expenditure is projected in line with National
priorities. This will include the implementation of MKUKUTA II in which Kilimo
Kwanza is also mainstreamed. This recognizes the declining trend in overall resource
envelope and the need to refocus expenditure on few key priority areas. Thus, the
overall expenditure is projected at 29.1 percent of GDP, 28.1 percent and 26.8
percent in 2010/11, 2011/12 and 2012/13 respectively. The focus of expenditure will
be in key infrastructure projects and essential goods and services. The following are
broad categories and their projected expenditure for the period 2010/11 – 2012/13:
(i) Wages and salaries are projected at 6.0 percent of GDP consistent with the
need to expand public services, particularly social services;
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(ii) Local development expenditure is projected at 23 percent of total domestic
revenue collections in the F/Y 2010/11. Foreign development expenditure is
based on projected grants and loans from project and basket funds; and
(iii) Expenditure on goods and services will focus only on priority activities needed
to facilitate delivery of adequate public services.
274. Based on development partners‟ pledge, the grants are set at 5.8 percent of
GDP in 2010/11 and are projected to decline to 4.7 percent in 2012/13. The loans
are projected to decline from 4.6 percent in 2010/11 to around 3.1 percent of GDP
in 2012/13. The projected decline is attributed partly to: -
(i) Future committed resources by the WB amounting to USD 170 million for
GBS, USD 46 million for accelerated food security and USD 30 million for
TASAF were frontloaded in FY 2009/10;
(ii) 50% reduction of Canadian pledge; and
(iii) Delays in commitments by Netherlands and Switzerland pending the decision
from their respective Headquarters.
147
Tables 8.1: represent the medium term resources and expenditure
framework for 2010/11 – 2012/13.
2009/10 2009/10 2010/11 2011/12 2012/13
Budget Likely Outturn Ceilings Projections Projections
FINAL
I. TOTAL RESOURCES 9,513,685 9,290,495 10,476,112 11,132,722 12,001,678
Domestic revenue 5,096,016 4,841,216 5,472,102 6,292,917 7,205,390
LGAs Own Sources 138,052 138,052 158,800 166,740 175,077
Programme loan and grants 1,193,909 1,225,520 1,223,592 1,169,587 1,136,561
Project loans and grants 1,073,170 1,073,170 1,099,850 1,135,149 1,170,683
Basket Support Loans 290,076 290,076 297,288 306,829 316,434
Basket Support Grants 282,849 282,849 289,881 299,185 308,550
HIPC relief-Multilateral 0 0 0 0 0
MDRI (IMF) 130,635 130,635 0 0 0
MCC (MCA-T) 211,308 211,308 268,750 408,277 188,875
Non Bank Borrowing (Rollover) 576,476 576,476 756,036 561,000 604,955
Bank Borrowing 506,193 506,193 352,700 396,519 447,577
Adjustment to cash 0 0 0 0 0
Privatisation Funds 15,000 15,000 0 0 0
Sovereign/ State bond 0 0 557,115 396,519 447,577
Financing Gap 0 0 0 0 0
II. TOTAL EXPENDITURE 9,513,685 9,290,495 10,476,112 11,132,722 12,001,678
RECURRENT EXPENDITURE 6,688,254 6,465,063 7,256,155 7,536,475 8,118,070
CFS 1,523,024 1,523,024 1,554,899 1,433,448 1,558,871
Debt service 1,059,238 1,059,238 1,082,114 906,056 952,833
Interest 407,826 407,826 283,752 256,240 256,427
Amortization 651,412 651,412 798,361 649,816 696,406
Others 463,786 463,786 472,786 527,392 606,038
Recurrent Exp (excl. CFS) 5,165,230 4,942,039 5,701,256 6,103,027 6,559,199
o/w Salaries & wages 1,774,177 1,774,177 2,116,197 2,379,113 2,685,460
Designated Items 176,382 176,382 553,888 581,583 610,662
Parastatal PE 327,896 327,896 392,831 441,637 498,504
LGAs Own Sources 138,052 138,052 158,800 166,740 175,077
Contingency 166,000 166,000 0 0 0
Other Charges 2,582,722 2,359,531 2,479,539 2,533,955 2,589,495
DEVELOPMENT EXPENDITURE 2,825,431 2,825,431 3,219,957 3,596,248 3,883,608
Local 968,028 968,028 1,264,188 1,446,808 1,899,067
o/w MDRI
Foreign 1,857,403 1,857,403 1,955,769 2,149,440 1,984,541
o/w MCC (MCA-T) 211,308 211,308 268,750 408,277 188,875
Tsh. Million
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Table 8.2 medium term resources and expenditure framework for 2010/11
– 2012/13 (percent)
2009/10 2009/10 2010/11 2011/12 2012/13
Budget Likely Outturn Ceilings Projections Projections
I. TOTAL RESOURCES 30.6% 29.9% 29.7% 28.1% 26.8%
Domestic revenue 16.4% 15.6% 15.5% 15.9% 16.1%
LGAs Own Sources 0.4% 0.4% 0.5% 0.4% 0.4%
Programme loan and grants 3.8% 3.9% 3.5% 2.9% 2.5%
Project loans and grants 3.4% 3.4% 3.1% 2.9% 2.6%
Basket Support Loans 0.9% 0.9% 0.8% 0.8% 0.7%
Basket Support Grants 0.9% 0.9% 0.8% 0.8% 0.7%
HIPC relief-Multilateral 0.0% 0.0% 0.0% 0.0% 0.0%
MDRI (IMF) 0.4% 0.4% 0.0% 0.0% 0.0%
MCC (MCA-T) 0.7% 0.7% 0.8% 1.0% 0.4%
Non Bank Borrowing (Rollover) 1.9% 1.9% 2.1% 1.4% 1.4%
Bank Borrowing 1.6% 1.6% 1.0% 1.0% 1.0%
Adjustment to cash 0.0% 0.0% 0.0% 0.0% 0.0%
Privatisation Funds 0.0% 0.0% 0.0% 0.0% 0.0%
Sovereign/ State bond 0.0% 0.0% 1.6% 1.0% 1.0%
Financing Gap 0.0% 0.0% 0.0% 0.0% 0.0%
II. TOTAL EXPENDITURE 30.6% 29.9% 29.7% 28.1% 26.8%
RECURRENT EXPENDITURE 21.5% 20.8% 20.6% 19.0% 18.1%
CFS 4.9% 4.9% 4.4% 3.6% 3.5%
Debt service 3.4% 3.4% 3.1% 2.3% 2.1%
Interest 1.3% 1.3% 0.8% 0.6% 0.6%
Amortization 2.1% 2.1% 2.3% 1.6% 1.6%
Others 1.5% 1.5% 1.3% 1.3% 1.4%
Recurrent Exp (excl. CFS) 16.6% 15.9% 16.2% 15.4% 14.7%
o/w Salaries & wages 5.7% 5.7% 6.0% 6.0% 6.0%
Designated Items 0.6% 0.6% 1.6% 1.5% 1.4%
Parastatal PE 1.1% 1.1% 1.1% 1.1% 1.1%
LGAs Own Sources 0.4% 0.4% 0.5% 0.4% 0.4%
Contingency 0.5% 0.5% 0.0% 0.0% 0.0%
Other Charges 8.3% 7.6% 7.0% 6.4% 5.8%
DEVELOPMENT EXPENDITURE 9.1% 9.1% 9.1% 9.1% 8.7%
Local 3.1% 3.1% 3.6% 3.6% 4.2%
Foreign 6.0% 6.0% 5.5% 5.4% 4.4%
o/w MCC (MCA-T) 0.7% 0.7% 0.8% 1.0% 0.4%
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Revenue Policies and Initiatives
Domestic Revenue
275. The government will continue to undertake various reforms in order to
improve domestic revenue collection and efficiency in the tax system. To achieve the
set objectives, the Government will primarily focus on the following:
(i). Widening the tax base by improving the tax structure and other revenue
measures.
(ii). To continue improving tax administration by implementing the TRAs Third
Five-Year Corporate Plan.
(iii). Improving management and control of tax exemptions.
(iv). Based on the report of the study, undertake policy reform measures in
Non tax revenue collection.
276. The Government intends to explore other options of financing development
projects, including the issuance of state/ sovereign bonds.
Foreign Resources
277. The government continues to promote general budget support (GBS) as the
preferred aid delivery modality due to its comparative advantages over other
modalities, in terms of predictability and strengthening government ownership over
resources allocation across MDAs, Regions and LGAs. Further, GBS is fully
integrated in the National Budget, Public financial management and government
accountability systems. Although GBS is the government preferred modality
commitments for the past three years have remained constant and projection in the
medium term declining in absolute terms. Government will continue to advocate for
GBS in order to scale up funding on GBS as well as convincing Non GBS partners to
consider joining the GBS modality by continuing to implement the Joint Assistance
Strategy (JAST), Paris Declaration and the Accra Agenda for Action.
278. The predictability of Basket and Project modalities has demonstrated
challenges for the Government to strategically plan and effectively prioritize
development projects. This, coupled with lengthy donor procedures, assessments
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and capacity constraints, led to funding delays and affected project performance.
However, these funding modalities are expected to be aligned with national
priorities, strategies and programmes and rely on government structures for
implementation. Thus, MDAs, Regions and LGAs are encouraged to align their
budgets with the general budget support modality.
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CHAPTER NINE
PERFORMANCE MONITORING, EVALUATION AND REPORTING
279. Monitoring and evaluation as well as timely reporting provide invaluable
inputs to policy making and accountability in spending public resources. It is
important, therefore, to have an efficient and effective performance monitoring and
evaluation system of government plans and budgets at all levels. Likewise, an
appropriate performance reporting mechanism is necessary to provide regular flow
of information on the performance of government policies, programmes and
activities.
280. This chapter, therefore, reviews the performance of MDAs, Regions, and
LGAs in terms of outlining progress attained in performance monitoring, evaluation
and reporting during the period under review. The chapter also outlines challenges
encountered and the way forward. Thus, the use of various forms required for
performance monitoring, evaluation and reporting is emphasised.
Achievements
281. Over the period under review, the Government has been taking strategic
interventions to improve the performance of MDAs, Regions and LGAs for increased
accountability and transparency. The main emphasis has been on improving
planning and budgeting processes as well as putting in place a government
framework for Monitoring and Evaluation, and performance reporting.
282. During the period under review MDAs, Regions and LGAs responded
positively by putting in place an effective M&E system and performance reporting.
Achievements registered are as follows:
(i). Establishment and operationalization of Expenditure Tracking and
Performance Monitoring Section in the Ministry of Finance and Economic
Affairs;
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(ii). Establishment of M&E Sections under the Policy and Planning
Departments/Units within the government structure;
(iii). Formulation of performance indicators by each MDA, RS and LGA for
monitoring purposes;
(iv). Some MDAs developed outcome performance indicators in the planning and
reporting process;and
(v). Enabled 10 MDAs to prepare annual performance reports in line with the
Government new standardized formats.
Challenges
283. Despite the achievements registered during the period under review, the
following challenges were observed;
(i) Planning, budgeting, M&E and reporting remained weak in some MDAs,
Regions and LGAs;
(ii) Adherence to strategic plans in some MDAs, Regions and LGAs;
(iii) Availability of outcome performance indicators and baseline data in some
MDAs, Regions and LGAs;
(iv) Formulation of institutional objectives and targets;
(v) Consistency and linkages between institutional Strategic Plans and the MTEF;
and
(vi) Capacity to monitor implementation of plans, budgets, and preparation of
analytical reports.
The Way Forward
284. In the medium term, the Government will continue to address the challenges
faced during the year under review. Specifically, the government will, among others:
(i) Continue to build capacity for all MDAs, Regions and LGAs in preparation of
strategic plans, MTEF, and report writing;
(ii) Continue to strengthen M&E Sections/Units in MDAs, Regions and LGAs;
(iii) Continue to strengthen mechanisms for performance monitoring, evaluation
and reporting for national initiatives and programmes that are in the initial
stages; and
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(iv) Enable MDAs, Regions and LGAs to prepare and submit appropriate
performance reports to respective authorities as indicated in Budget Guideline
Part II.
Instructions on Performance Reporting
285. All institutions should prepare performance reports and submit timely to the
relevant Central Ministries (PO-PSM, PMO, PMO-RALG and MoFEA). Agencies are
required to submit such reports to their parent Ministries on time to enable
consolidation of the information into the main report MDAs and Regions are
reminded to submit Cumulative Quarterly Progress Reports by 15th of each
month following the end of a quarter. LGAs should submit reports by 30th of each
month following the end of a quarter.
286. MDAs, Regions and LGAs are required to prepare Annual Performance Reports
and Three Years Outcome Peformance Reports providing feedback on the
attainment of key results areas of their strategic plans. These reports should be
submitted to PO-PSM, PMO, PMO-RALG and MoFEA by 1st of October following
completion of each financial year. The Annual Performance Reports and Three Years
Outcome Performance Reports should be made available to the Parliament and
disseminated to the public via institution‟s web site, media or other appropriate fora
to enhance transparency and accountability. Detailed descriptions and structure of
all reports including their formats are outlined in the MTSPBM and Plan and Budget
Guideline Part II.
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CHAPTER TEN
INSTITUTIONAL RESPONSIBILITIES
287. The purpose of this chapter is to re-emphasize to all government institutions
of their roles and responsibilities in the preparations and executions of their plans
and budgets in the medium term with the view to achieve national priority
objectives. The chapter also intends to remind all Accounting Officers and the
institutions‟ Plan and Budget Committees of their roles and responsibilities. More
importantly, the chapter point out the need for each institution to abide to priority
areas listed under this chapter.
Roles of Accounting Officers in Planning, Budget Preparation and
Execution
288. Accounting Officers have the responsibility of overseeing the preparation of
institutional plans and budgets, as well as execution, monitoring and evaluation. It
has been observed that, there is a poor linkage between Strategic Plans and MTEF.
To address such weaknesses, Accounting Officers should ensure there is linkage
between the two documents and have the obligation of participating in person in the
whole process from the preparation to execution of plans and budgets of their
institutions. Specifically Accounting Officers have the following responsibilities:
(i). To continue strengthening Planning and Budgeting Committees at
institutional level to ensure that they are proactively engaged in the
planning and budgeting process, as well as in monitoring, evaluation and
performance reporting;
(ii). To provide clear guidance on policy priorities that should be reflected in
institutional plans and budgets;
(iii). To take all necessary steps to ensure all salary arrears accrued during
2009/10 FY are paid before 30th June, 2010;
(iv). To ensure all reforms that are implemented under their jurisdiriction are
financed and implemented as per set targets and in view of improving
business environment in the country;
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(v). To supervise and guide State Agencies in view of reducing their
dependence in the National Budget;
(vi). MDAs whose sectors are at LGA level should develop action plans and take
steps aimed at enhancing capacity of LGAs in the delivery of essential
services; and
(vii). Guided by application of formulae in the allocation of resources to LGAs,
compensatory development grants should be provided to underserved
LGAs.
Plan and Budget Committees
289. Plan and Budget Committee is composed of Accounting Officer and all heads
of Departments. The Committee is responsible for overseeing the planning and
budgeting processes, budget implementation, monitoring, evaluation and
performance reporting. As such the Committee is required to:
(i) Oversee formulations of institutional plans and budget including setting of
revenue and expenditure targets as well as allocation of resources;
(ii) Ensure that budget estimates are realistic and accurate and include all
foreseeable revenues and expenditures;
(iii) Ensure that all revenues collected and funds allocated are accounted for in
accordance with Public Finance Act of 2001 and its subsequent
amendments;
(iv) Collaborate with other MDAs who are implementing inter-sectoral
programmes to avoid duplication in resource allocation;
(v) Ensure Plan and Budget Guideline instruction are adhered to; and
(vi) Ensure performance reports are prepared on timely basis to feed internal
and external needs.
290. Institutions are required to come up with well formulated and focused plans
for the three years of MTEF. In that regard, MDAs, Regions and LGAs should be
guided by the following checklist:-
(iii) Adhere to existing National policies, the Medium Term Strategic Plan and
Budget Guideline Manual and institutional priorities;
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(iv) Ensure that the allocation of resources addresses Election Manifesto
(2005), MDGs, MKUKUTA II, KILIMO KWANZA as well as cross cutting
issues such as HIV and AIDS, core reforms, gender and environment;
(v) Ensure collaboration and coordination in order to remove duplication of
efforts and maximizing the benefits of synergies;
(vi) Ensure that priority activities are properly estimated and resources
allocated;
(vii) Ensure that milestones are well identified with cost indications in order to
get tangible outputs within the MTEF period;
(viii) Prioritize funding of projects (especially ongoing projects), activities and
items and adhere to set ceiling with regard to recurrent and development
estimates;
(ix) Ensure that there is clear demarcation between Recurrent and
Development Budget and between Ministry, Departments and Agencies so
as to avoid double funding for similar activities;
(x) Prepare and submit institutional MTEF document that includes revenue,
recurrent and development estimates;
(xi) Ensure that Budget submissions for 2010/11 – 2012/13 adhere to the
approved format; and the relevant forms included in Plan and Budget
Guidelines Part II are dully filled; and
(xii) Update Institutional MTEFs to accommodate subsequent changes after
budget scrutiny sessions. The revised institutional MTEFs should be
submitted to the Treasury as soon as the MDAs budget is approved by
Parliament.
Expenditure Control and Cost Reduction
291. Accounting Officers are requested to ensure that their institutions adhere to
the approved budget and maintain a high degree of financial discipline. In order to
free resources for financing KILIMO KWANZA initiatives and core activities of the
institution, in year 2010/2011 Accounting Officers are requested to continue reduce
allocation of resources to areas such as procurement of vehicles, seminars and
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workshops, employment allowances, and travel and government hospitality.
Consequently, Accounting Officers are required to do the following:
Procurement of Government Vehicles
292. In the next financial year, Accounting Officers will be allowed to procure
vehicles for their institutions but are urged to procure economic efficiency small 4WD
vehicles of not more than 2,800 cc for normal duties and 4,200 for field works. To
effect these measures, the Ministry of Infrastructure Development will prepare a
circular which defines types of vehicles to implement these measures for year
2010/2011. Procurement of the same will continue to be subject to the approval
from the Prime Minister‟s Office. Also Accounting Officers are required to continue
to cut down maintenance and running costs of vehicles.
Seminars and Workshops
293. In year 2010/2011 Accounting officers are required to budget not more than
50 percent of the amount budgeted in 2009/2010 for seminars and workshops.
Approvals for all seminars and workshops will be sought from the Prime Minister‟s
office. The use of public institution facilities should continue to be given priority
when conducting the approved seminars and workshops.
Travel Allowances
294. Accounting Officers are required to budget not more than three quarters of
2009/2010 budgeted amount for travel allowances. Spending of these allowances
should ensure that the Government get value for money for whatever expenditure
incurred in various travels whether being internal or external. In this respect,
Accounting Officers are urged to honour only those internal and foreign trips which
are of national interest and would result in more benefit to the Government,
including adherence to Government circulars and instructions as they may be issued
from time to time.
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Furniture
295. Accounting Officers should observe procurement of durable and quality
furniture and are urged to procure such furniture from local manufacturers.
Government standards on furniture and equipment and procedures for replacement
of the same should be applied and observed.
Government Procurement Systems and Management
296. Accounting Officers, for the purpose of realization of value for money in all
procurements are urged to adhere to the Public Procurement Act, 2004 and its
subsequent Regulations including ensuring that PMUs have the capacity to discharge
their duties and responsibilities. Similarly, the Public Procurement Regulatory
Authority (PPRA) should continue to oversee effective implementation of the Public
Procurement Legislations as may be amended from time to time.
National Priorities for the Medium Term
297. Accounting Officers should allocate adequate resources in line with national
and sectoral priorities falling under their sectors and in line with the allocated budget
ceiling. In particular, the key national priorities in the medium term are agriculture,
infrastructure, energy, Land management, and manufacturing as stipulated in
chapter seven.
Preparation of Personal Emolument Budget
298. Preparation of Personal Emoluments (PE) should adhere to guidelines issued
by President‟s Office-Public Service Management (PO-PSM) and Treasury Registrar‟s
(TR) guidelines to public institutions. Specifically, MDAs, Regions and LGAs are
therefore required to observe the following:
(i) PE budget for new employees, should be based on establishment approval
granted during PE discussions with PO-PSM;
(ii) PE budget for the existing employees should reflect staff specification and
payroll, as of March 2010;
(iii) PE budget should also include statutory commitments to social security funds
including PSPF, LAPF, NSSF, GEPF, NHIF and PPF as appropriate;
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(iv) Employers, for Government budget consolidation, should, adhere to PE
submission formats ( i.e. Forms No. 8A-8F and 9);
(v) Salary adjustments should be promptly effected to avoid accumulation of
salary arrears; and
(vi) Ensure that orientation is carried to all newly recruited public servants before
placement.
299. In addition, Public Institutions and Agencies should observe the following in
preparing their PE Budgets;
(i) Ensure that PE budgets are prepared in consultations with parent ministry;
(ii) PE budget (through Forms No. 8A-8F) should be submitted to the Treasury
Registrar for preliminary scrutiny before the final budget scrutinization
exercise;
(iii) Ensure that statutory contributions are budgeted for;
(iv) Ensure that the basis for preparation of PE budget is the approved salary
structures;
(v) In order to ensure effective wage bill control and monitoring, Public
Institutions/Agencies should submit payroll returns to the Treasury on
quarterly basis;
(vi) Employers are urged to ensure salary claims originating in the 2009/10
budget are paid before 2009/10; and
(vii) Starting from FY 2010/11 promotion and funding shall not be effected unless
MDAs, Regions and LGAs have demonstrated that OPRAS is in use and has
resulted into such promotions.
Preparation of Revenue Estimates
300. During the 2010/11-2012/13 plan and budget preparations, MDAs, Regions
and LGAs should observe the following:-
(i) Ensure that tax and non-tax revenue current sources and potentials are
explored, strategies for collection are well articulated and realistic projections
are submitted to the Treasury;
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(ii) Ensure that local Government own source revenues is incorporated in the
budget submission to Treasury; and
(iii) Ensure effective accountability in revenue collection from own sources.
Accumulation of debts and stock of arrears
301. Institutions have been accruing debt from employee‟s statutory allowances
and suppliers, including leave travel, moving expenses, salaries, utilities (water,
electricity, and telephone charges). In this regard, MDAs, Regions and LGAs are
required to:
(i) Ensure that basic office supplies, employees statutory requirements and
utilities are well estimated and fully funded within the set ceiling;
(ii) Ensure that project implementation is contracted out in phases. MDAs,
Regions and LGAs should ensure that funds are available before engaging a
consultant/contractor;
(iii) Ensure that accrued debts are considered as first charge within the given
resource ceiling;
(iv) Minimize government guarantees practises to curtail Government
expenditure;
(v) Submit all unpaid salary arrears/Claims using current format that the
employer has failed to pay/settle during 2008/09 FY;and
(vi) To set up teams at employer and national lead that will make follow up of
compliance to the Chief Secretary‟s Circular No 1 of 2009 regarding
management of salary arrears.
Institutional MTEF Submission
302. A well articulated Strategic Plan will eventually assist an institution to attain its
Vision, Mission, Objectives and targets in an effective and efficient manner. Hence
institutions are reminded to ensure that they have good SPs and MTEF in place. It is
the duty of top leadership of the institutions to ensure that preparation of MTEF is
well coordinated and linked to the SP. In addition, MTEF should be owned by the
respective institutions before submission to MOFEA.
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Implementation of Institutional Plans and Budgets:
303. It is the role of the Accounting Officer and the Institutional Budget Committee
to coordinate plans and budgets preparation and their implementation. Prior and
during implementation of budget MDAs, Regions and LGAs should undertake the
following:
(i) Prepare action plan and cash flow plan for implementation of planned
interventions for revenue, recurrent and development budgets according to
the format provided in the PBG Part II;
(ii) Take measures that will ensure there is fully utilization of remitted funds
including commencement of procurement processes earlier to avoid unspent
balances at the end of the financial year. Unspent balances should be
remitted to Treasury as early as possible so that are spent in other activities;
(iii) Ensure that revenue collected is acknowledged and remitted to the
Consolidated Fund;
(iv) Conduct monitoring and evaluation on the implementation of the institutional
Strategic Plan and MTEF based Budget;
(v) Ensure that budget is executed as planned, avoid budget deviation resulting
from reallocating funds to activities that are not really contingent and avoid
applying for funds outside the budgeted amounts;
(vi) Prepare and submit physical and financial performance reports as per PBG
Part II requirements;
(vii) Ensure proper management of resources at institutional level and address
weaknesses as pointed out in the Controller and Auditor General‟s (CAGs)
reports;
(viii) Conduct regular inspections on payrolls to ascertain its integrity and accuracy
by identifying employees who are supposed to be removed from payroll for
various reasons;
(ix) Return to the Treasury all unclaimed salaries on monthly basis through
depositing the same into the designated revenue bank accounts; and
(x) Ensure that unclaimed salaries are not used to fund non-salary expenses.
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304. Regional Plan and Budget Committees are supposed to offer technical advice
on the preparation of plan and budget at the LGAs levels. Also, for smoother
implementation of D by D policy, MDAs and Regions are required to do the
following:-
(i) Continue to devolve resources to LGA in the year 2010/11 for functions and
activities yet to be devolved;
(ii) Finalize amendment of the sector specific laws and regulations that are in
conflict with the implementation of D by D policy; and
(iii) To strengthen monitoring and evaluation as well as improving information
sharing for effective implementation of development goals by LGAs.
NACSAP Interventions
305. Introduction of the second generic objective for effective implementation of
NACSAP II is aimed at ensuring and enabling MDA‟s, Regions and LGA‟s to execute
the government policy of preventing and combating corruption. In particular, MDA‟s,
Regions and LGA‟s should undertake the following activities.
(i) To strengthen capacity of the Integrity Committees in respective institutions;
(ii) MDAs and LGAs to budget for Anti-Corruption activities;
(iii) To monitor, evaluate and review the institutional Anti-Corruption action plans
where appropriate; and
(iv) Strengthening reporting mechanism to ensure timely preparation and
submission of quarterly NACSAP implementation report to Chief Secretary.
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FORM FOR BUDGET SUBMISSION, EXECUTION AND PERFORMAMNCE REPORTING
Introduction
Part II of the guidelines for preparation of Plan and Budget constitute standard forms that enables Ministries, Independent Departments and Agencies (MDAs), Regional Secretariats (RSs) and Local Government Authorities (LGAs) to prepare, execute and monitor their budgets effectively and efficiently. These forms have been designed in a participatory way that encompasses various needs and formats as compiled by the Harmonization Team. The detail information on the use and submission processes for each form is documented in the Medium Term Strategic Planning and Budgeting Manual (MTSPBM). In this regards, Part II of the guidelines for preparation of Plan and Budget provides the following forms into 4 categories namely: Submission; Operational Planning; Performance Reporting; and Internally Used Form. 1. Forms used for budget submission During the budget preparation, MDAs, RSs and LGAs are obliged to submit their MTEF budgets in adherence to the standard format shown at the end of this guideline (i.e. MTEF Presentation Format). Each institution should provide accurate and up to date information in order to reflect the true situation to all stakeholders. Likewise, the following forms should be filled properly and submitted in the MTEF document: (i) Form No. 1: Summary of Annual and Forward Budget Estimates (Revenue,
Recurrent And Development) (ii) Form No. 2: Recurrent Expenditure Forward Budget (Summary Of Personal
Emoluments and Other Charges at Vote Level) (iii) Form 3a (R): 3 Year MTEF Target Value Form (Recurrent Expenditure) (iv) Form 3a (D): 3 Year MTEF Target Value Form (Development Expenditure) (v) Form 3b: Activity Costing Sheet (vi) Form 3c: Recurrent Expenditure Summary of Draft Estimates (vii) Form 4: Domestic Revenue Forward Budget (viii) Form 5: Domestic Revenue (Details Of Draft Annual Estimates) (ix) Form 6: Development Expenditure Details Of Annual And Forward Budget (x) Form 7b: Institutional Results Framework (xi) Form 8a: Summary of Personal Emoluments Estimates at Vote Level (xii) Form 8b: Summary of Personal Emoluments Estimates at Sub-vote Level (xiii) Form 8c: Item I - Summary of Existing Employees on Payroll (xiv) Form 8d: Item II - Summary of Existing Employees Not on Payroll (xv) Form 8e: Item III - Summary of New Employees to be Recruited (xvi) Form 9: Schedule Of Personal Emoluments( Establishment And Strength) (xvii) Form 10a: Project Profile Data Form
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(xviii) Form 10b: Summary of Project Forward Budget Estimates Vote (All Sources) 2. Forms used for operational planning Based on the budget process, MDAs, RSs and LGAs have been preparing various forms in order to monitor the institutional trends for inflows, outflows and execution implementation of planned activities. The forms include cash flow and action plan which are aligned in the current years‟ targets set by respective institution. In this regards, the following forms should be filled properly and submitted to MoFEA before 15th July in order to be used during the allocation and release of: (i) Form 11A (R): Current year MTEF Target Value Form (Recurrent Expenditure) (ii) form 11A (D) current year MTEF target value form (development expenditure) (iii) Form 11B (R): Annual Cash Flow Plan for the Recurrent Budget (iv) Form 11B (D): Annual Cash Flow Plan for the Development Budget (v) Form 14B (R): Annual Action Plan for the Recurrent Budget (vi) Form 14B (D): Annual Action Plan for the Development Budget 3. Forms used in performance reporting All MDAs, LGAs and RSs have been reporting on their performance in compliance with statutory requirements. In order to improve the scope and quality of the reports and to better link reports to Strategic Plans and the MKUKUTA, Government institutions are obliged to report, in more detail, on their performance against plans. In the process of reporting results, the Monitoring and Evaluation (M&E) techniques will be needed to collect, manage, analyse, and interpret data. This will include the definition of key performance indicators, collection of indicator data, and the undertaking of analytical or evaluative studies. In addition, performance reporting will go beyond sheets and forms by requiring Government institutions to prepare more analytical reports. In this context therefore, Government institutions are required to submit the following performance reports: (i) Quarterly Reports on cumulative targets and expenditures, against the
annual plan and budget (ii) Annual Performance Reports on targets and outcome monitoring, against
the annual plan and budget (iii) A 3-Year Outcome Evaluation Report against medium term Strategic Plan
objectives and outcomes
Quarterly Progress Reports The Quarterly Progress Report is intended to provide an overview of implementation progress on a cumulative basis against an institution‟s set targets and budget. The report also provides information on the implementation of a sub-set of high profile or priority interventions.
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At mid-year, reports should also focus on budget variations and justifications for adjustments. The main body of this report should not exceed five pages. The following three quarterly reports will be produced:
Quarter 1 Progress Report, summarizing implementation during Quarter 1 Mid Year Progress Report, summarizing cumulative implementation (Quarter 1 +
Quarter 2) together with a focus on budget variations Quarter 3 Progress Report, summarizing cumulative implementation (Quarter 1
+ Quarter 2 + Quarter 3)
In terms of submission and dissemination, Quarterly reports do not have to be submitted to Parliamentary Committees or disseminated to the public. MDAs and RSs should submit their reports by the 15th of each month following the end of a given quarter, while LGAs should submit their reports by the 30th of each month following the end of a given quarter.
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STRUCTURE OF THE QUARTERLY REPORT
I. Title/cover page II. Table of contents
III. Main body
Introduction Overview of Implementation of Milestones/Priority Interventions: This Section of the quarterly report describes progress in implementing
milestones, which are developed during the planning process. To collect information on the implementation of milestones the officer responsible for preparing the report should informally interview implementers (verbally), rather than distribute a form or sheet for them to fill out.
Issues and Constraints: During the process of monitoring milestones and targets, issues and
constraints should typically be identified. Issues arising may concern, delays in implementation, reduced scope or quality of outputs, constraints in terms of resource availability, etc. The identification of issues to be reported is, however, a subjective matter and there will be a need to prioritise which issues affected the achievement of the set milestones and targets within the specified period.
Remedial Actions IV. ** Summary of budget variations and their justification (for Quarter II only) V. Annex and Tables
Annex 1: Form 12A: Cumulative Quarterly MTEF Target Monitoring Form Annex 2: Form 12B: Quarterly Cumulative Milestone (Priority) Form Annex 3: Form 13A: Quarterly Cumulative Financial Overview Form Annex 4: Form 13B: Quarterly Cumulative Financial Detailed Form
Key: ** included during the mid-year progress report only
The Annual Performance Report The Annual Performance Report is intended to provide a detailed description of an institution‟s main achievements in terms of the targets reached and the progress realized in improving its service delivery. The report should also address performance on revenues and expenditures as well as Human Resources status. Responsibility for the preparation and accuracy of the report lies with the Accounting Officer for each MDA, RS, and LGA. The report should be prepared and submitted to PO-PSM, PMO, PMO-RALG (for LGAs and RSs) and MoFEA by the 1st October following the completion of each financial year. It should also be made available to other stakeholders, including the the Parliamentary Committees and members of the public (on the institution‟s web site or through other relevant media). It is expected that, the main body of this report will be between 20 and 40 pages. The structure of the Annual Performance Report should be as shown here under:
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Structure of an Annual Performance Report
TITLE/COVER PAGE TABLE OF CONTENTS PREFACE 1. Statement by the Minister/RC/Council Chairperson 2. Statement by the Accounting Officer. 3. Executive Summary MAIN BODY 1. Part 1: Introduction. This should include the following:
Section 1.1 (Introduction): a short description of the purpose of the report, the approach adopted, and the methods used.
Section 1.2 (structure) Describe the layout and structure of the remainder of the document. 2. Part II: Overall Performance
Section 2.1 (Progress towards reaching outcomes): Provides highlights of performance, in words and in a summary indicator table format. Makes reference to a more detailed annex. This should explicitly make reference to progress in meeting MDG, MKUKUTA goals and targets, or ruling party commitments.
Section 2.2 Progress in improving service delivery (quality, efficiency, timeliness, or satisfaction); discuss what changes have occurred within the organisation to improve the services it provides to its clients. For example, if passports are delivered more quickly, if cost savings have been generated for the taxpayer, etc.
Section 2.3 (Evaluation and Reviews): Summarizes (very briefly) the results of studies that will be used to prepare the 3-Year Outcome report, and the general progress in terms of evaluation results.
Section 2.4 Milestones or Priority Interventions: a discussion of interventions that were considered to be critical to achieve overall objectives or ensure effective implementation of the plan.
Section 2.5 (Issues): Highlight problems or issues, carefully identifying targets at risk or targets which were not met. This may be brief with more details explained in Part III. Describe the actions taken by management to address these problems.
3. Part III: Achievement of Annual Targets. This chapter should be presented on a sub-vote by sub-vote basis. It should provide the written details about each target and what happened during implementation. MKUKUTA, the Performance Assessment Framework (PAF), and Ruling Party targets should be clearly identified. The chapter may also document details about key activities (especially those not implemented) and overview expenditure data on a particular target.
4. Part IV: Financial Performance. This chapter should provide overall aggregate expenditure data compared to budgets as well as revenue collection trends (where applicable). Expenditure information should be derived from the Integrated Financial Management Systems (IFMS) for those who are already using the system.
5. Part V: HR Review. Summarises staffing levels, vacancies, and other key issues including the balance between PE and OC.
ANNEX and TABLES Annex 1: Form 12A: Cumulative Quarterly MTEF Target Monitoring Form Annex 2: Form 12B: Quarterly Cumulative Milestone (Priority) Form Annex 3: Form 12C: Outcome Indicator Monitoring Form Annex 4: Form 13A: Quarterly Cumulative Financial Overview Form Annex 5: Form 13B: Quarterly Cumulative Financial Detailed Form
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Three Year Outcome Report The outcome report should be prepared at the end of the Strategic Planning cycle. It should focus on assessing the degree to which the institution is meeting its planned objectives or outcomes documented in the Strategic Plan. The report should summarize the findings of the main evaluations, analytical studies, and reviews undertaken during the period. For each objective the report should describe what the expected achievements were, how they were measured, and what the main findings or results of the assessments were. These assessments should be linked to all national frameworks including MDGs, MKUKUTA and Ruling party Manifesto. The report should be submitted to PO-PSM, PMO, PMO-RALG (for LGAs and RSs) and MoFEA, by the 1st October following the completion of the Strategic Planning cycle. As was the case with the Annual Performance Report, the 3-Year Outcome Report should be made available to stakeholders, including appropriate Parliamentary Committees and members of the public (on the institution‟s web site or through other relevant media). The structure of the 3-Year Outcome Report is provided below.
Structure of a Three Year Outcome Performance Report
TITLE/COVER PAGE TABLE OF CONTENTS PREFACE
1. Statement by the Minister/RC/Council Chairperson 2. Statement by the Accounting Officer. 3. Executive Summary
MAIN BODY
1. Part 1: Introduction. This should include the following: o Section 1.1 Introduction; who is preparing the report, the period it covers, the purpose
of the report, the approach adopted, and the methods used. o Section 1.2 Restatement of the objectives/outcomes from the SP and how they were
derived (MKUKUTA linkages, etc). o Section 1.3 A short description of the approach adopted and broad methods used. o Section 1.4 Limitations, including limitations on the availability of information,
(especially baseline data), problems of attribution, etc. o Section 1.5 The layout and structure of the remainder of the report.
2. Part II: Assessment of progress in meeting each objective: (each objective should constitute a chapter.) Within each chapter there should be the following sections:
EVALUATION OF OBJECTIVE A o Section 2.1 Introduction: Review the objective/outcome and why it is important (i.e. its
context). o Section 2.2 Methods: Methods Used to collect data and draw conclusions. This may
include: Performance against specific indicators for the objective Surveys of clients satisfaction with the services (quality, timeliness, etc)
provided by the MDA/RS/LGA/other institutions. Compliance with standards, rules and regulations
170
Structure of a Three Year Outcome Performance Report
Results of other relevant evaluations, studies or surveys (secondary data) prepared by others
Other methods, where relevant o Section 2.3 Data and Main Findings
Discuss the data, the results to be inferred from the data and the main conclusions
Are there reasons why objectives may not have been met? o Section 2.4 Summary: summarise results and focus on the issue of improvement: are
things getting better? REPEAT EVALUATIONS FOR OBJECTIVES, B, C, D, etc.
LIST OF ANNEX: Annex 1: Form 12C: Outcome Indicator Monitoring Form Annex 2: Bibliography Annex 3: Other Supporting Data
171
Budget Submission Forms
FORM 1: SUMMARY OF ANNUAL AND FORWARD BUDGET ESTIMATES REVENUE, RECURRENT AND DEVELOPMENT EXPENDITURE ('000 TSHS)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
Description
Actual
Budget
Y0-2
Approved Budget
Estimates
Y0-1
Annual Budget
Estimates
Y0
Forward Budget
Estimates
Y0+1
Forward Budget
Estimates
Y0+2
1 2 3 4 5 6
1. Total Domestic Revenues
Recurrent Expenditure PE
OC
2. Total Recurrent Expenditure
Development Expenditure Govt. Funds
Foreign Funds
Other Funds
3. Total Development Expenditure
TOTAL EXPENDITURE
Note: Total Expenditure = Total Recurrent Expenditure + Total Development Expenditure
Note: Item 1: In the case of LGAs Total Domestic Revenue mean own revenues.
Y0-2 = 2 Preceding years (2 years back) Y0+1 = Forward Budget (Next year)
Y0-1 = Previous year (last Financial Year) Y0+2 = Forward Budget (next 2 years)
Y0 = Current Financial Year
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FORM 2: RECURRENT EXPENDITURE FORWARD BUDGET (SUMMARY OF PERSONAL EMOLUMENTS AND OTHER CHARGES AT VOTE LEVEL)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
All values in 000 Tshs.
Description
Actual
Budget
Y0-2
Approved
Budget Estimates
Y0-1
Annual
Budget Estimates
Y0
Forward Budget
Estimates
Y0+1
Forward Budget
Estimates
Y0+2
1 2 3 4 5 6
1. Total Personal Emolument
Other Charges
Vote proper O.C
Internal
Subvention
PE
OC
External Subventions
2. Total Other Charges
GRAND TOTAL PE + OC
Note: Grand Total is equal to Total Personal Emolument + Total Other Charges
173
PBF 5.1 (a)
FORM 3A (R): 3 YEAR MTEF TARGET VALUE FORM (RECURRENT EXPENDITURE)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD: QUARTER PROJECTED RESULTS COVERING THE PERIOD FROM FINANCIAL YEAR ………. TO F/Y ……
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
OBJECTIVE CODE AND NAME:
CODES AND LINKAGES CUMULATIVE MEASURES BY YEAR
Target Code M P R Target Description (3 year) Units of Measure Y0 Y+1 Y+2
1 2 3 4 5 6 7 8 9
Notes
Each row on this form describes a single target (output). Descriptions of each column are as follows:
Column 1 Target Code is the Segment 2 code at the target level, for example “A03C”
Columns 2 to 4 (M, P, R)” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the target is an MKUKUTA target), P = PAF Matrix (if it is a PAF
target); R = Ruling Party Manifesto. This will help link the MTEF target to other coordinating plans
Columns 5 and 6. Target Description: All targets should be converted to the end point of the current 3 year MTEF period (i.e. three years in advance); for example or if the target is
“build 500 kilometres of road by 30 June 2009” the units of measure are “Kilometers of road built.”
Columns 7 to 9: Cumulative Measures by year: is the expected CUMULATIVE level of the target at the end of the upcoming 3 financial years. For example if the target is to build 500
kilometers of road the Y0 value may be 150, the Y+1 value may be 400 and the Y+2 value may be 500.
174
PBF 5.1 (b)
FORM 3A (D): 3 YEAR MTEF TARGET VALUE FORM (DEVELOPMENT EXPENDITURE)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD: QUARTER PROJECTED RESULTS COVERING THE PERIOD FROM FINANCIAL YEAR ………. TO FY ……
PROJECT CODE AND NAME:
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
OBJECTIVE CODE AND NAME:
Notes
Each row on this form describes a single target (output). Descriptions of each column are as follows:
Column 1. Target Code is the Segment 2 code at the target level, for example “A03C”
Columns 2 to 4: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the target is an MKUKUTA target), P = PAF Matrix (if it is a PAF
target); R = Ruling Party Manifesto. This will help link the MTEF target to other coordinating plans
Columns 5 and 6. Target Description: All targets should be converted to the end point of the current 3 year MTEF period (i.e. three years in advance); for example or if the target is
“build 500 kilometres of road by 30 June 2009” the units of measure are “kilometres of road built.”
Columns 7 to 9: Cumulative Measures by year: is the expected CUMULATIVE level of the target at the end of the upcoming 3 financial years. For example if the target is to build 500
kilometres of road the Y0 value may be 150, the Y+1 value may be 400 and the Y+2 value may be 500.
CODES AND LINKAGES CUMULATIVE MEASURES BY YEAR
Target Code M P R Target Description (3 year) Units of Measure Y0 Y+1 Y+2
1 2 3 4 5 6 7 8 9
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FORM 3B: ACTIVITY COSTING SHEET
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
OBJECTIVE NO: ………… OBJECTIVE DESCRIPTION:………………………………………………………
TARGET CODE: ………… TARGET DESCRIPTION:………………………………………………………………
NSGRP
Other Tick (√)
Segment 2
Performance
Budget Code
Segment 4
(GFS Code)
Required Inputs
Annual Budget
Estimates
Y0
Forward Budget
Estimates
Y0+1
Forward Budget
Estimates
Y0+2
Segment 4
Description
(GFS Code
Description)
Unit of
Measure
Unit cost
of Inputs
No of
Units Estimates
No of
Units Estimates
No of
Units Estimates
1 2 3 4 5 6 7 8 9 10 11
Total TShs…………………….
Notes Column 1: Segment 2 includes objective, target, target type and activity
Column 7 equals column 5 X column 6
Column 9 equals column 5 X column 8
Column 11 equals column 5 X column 10
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FORM 3C: RECURRENT EXPENDITURE SUMMARY OF DRAFT ESTIMATES
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
Segment 4
(GFS Code)
Segment 4
Description (GFS
Code Description)
Actual Budget
Y0-2
Approved Budget
Estimates
Y0-1
Annual Budget
Estimates
Y0
Forward Budget
Estimates
Y0+1
Forward Budget
Estimates
Y0+2
(1) (2) (3) (4) (5) (6) (7)
Notes Columns 5, 6 and 7 is a Summary of Form No. 3(a) Activity Costing Sheet)
177
FORM 4: DOMESTIC REVENUE FORWARD BUDGET
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
Segment 4
(GFS Code) Description
Actual Collection
Y0-2
Approved Estimates
Y0-1
Draft Estimates
Y0
Forward Budget
Y0+1
Forward Budget
Y0+2
(1) (2) (3) (4) (5) (6) (7)
Total of Sub-Vote
TOTAL OF
VOTE
Notes:
Y0 = Current Financial Year Y0+1 = Forward Budget (Next year)
Y0-1 = Previous financial year (last Financial Year) Y0+2 = Forward Budget (next 2 years)
Y0-2 = 2 Previous years (2 years back)
178
FORM 5: DOMESTIC REVENUE
DETAILS OF DRAFT ANNUAL ESTIMATES
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………..
Segment 4
(GFS Code) Description
Actual
Collection
Y0-2
Actual
Collection up to
Feb. Y0-1
Projections
March to June,
Y0-1
Likely Out-
turn July to
June Y0-1
Approved
Estimates
Y0-1
Draft
Estimates
Y0
(1) (2) (3) (4) (5) (6) (7) (8)
TOTAL OF SUB-VOTE
TOTAL OF PROGRAMME
Notes:
Y0 = Current Financial Year Y0+1 = Forward Budget (Next year)
Y0-1 = Previous financial year (last Financial Year) Y0+2 = Forward Budget (next 2 years)
Y0-2 = 2 Previous years (2 years back)
179
FORM 6: DEVELOPMENT EXPENDITURE DETAILS OF ANNUAL AND FORWARD BUDGET
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME …………………………………………………………………..
PROJECT CODE: ………………. PROJECT NAME : …………………………………………………
OBJECTIVE NO: ………… OBJECTIVE DESCRIPTION:………………………………………………………
TARGET CODE: ………… TARGET DESCRIPTION:………………………………………………………………
NSGRP
Other Tick (√)
(Segment 2)
Performance
Budget Codes
Activities
Description
Segment 4
(GFS Code)
Segment 4
(GFS Code
Description
Annual Budget
Estimates Y0
Forward Budget Estimates
Y0+1 Forward Budget Estimates Y0+2
Government Funds Government Funds Government Funds
Local Foreign L/G C/D Donor
Total
Govt.
Fund Local Foreign
Total
Govt.
Fund Local
Foreign
Total Govt
Fund
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
Total of Target
Total of Project
TOTAL OF SUB-VOTE
Notes
1. Total Target is Sum of all activities under a Target
2. Total Project is Sum of all targets under a Project
3. Total Sub-Vote is Sum of all Projects under the Sub-Vote
4. Total Govt. Fund = Local fund + Foreign fund
5. L/G = Loan/Grant
6. C/D = Cash/Direct to project
180
PBF 4.2
FORM 7B: INSTITUTIONAL RESULTS FRAMEWORK
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD: PROJECTED RESULTS COVERING THE PERIOD FROM FINANCIAL YEAR ………. TO FINANCIAL YEAR ……
Objective Code
and Description
Indicator Name and
description
BASELINE
INDICATOR TARGET
VALUES (AS PER SP) CLASSIFICATIONS
Source of Data / Means of
verification Baseline
Date
Baseline
Indicator
Value Y0 Y+1 Y+2 MDG M P R
1 2 3 4 5 6 7 8 9 10 11 12
Notes
Each row on this form describes a single performance indicator. Indicators are used to measure progress towards meeting objectives; they are performance
measures. Descriptions of each column are as follows: Column 1. Objective Code and Description: the objective (in words) and its code, being measured by the indicator, for example: “B. Increase Access to Education”
Column 2. Indicator Name and Description: this is in two parts. The indicators name should be in italics while its description (how the indicator is calculated) should be listed below it
in a bullet or in parenthesis, for example: Annual Salary Arrears as a percentage of total annual salaries
This indicator takes the sum of the arrears paid from January to December and divides it by the total salaries paid over the same period. The indicator is an inexact measure
of the quality of salary administration since arrears arise due to delays in entering changes due to recruitment, promotion or transfer; the more time efficient these processes,
the less arrears will arise. However, arrears payment tends to be "lumpy" with payments being made according to the availability of funds. This reduces the validity of the
indicator as an efficiency measure. The derivation of targets assumed arrear rates for 2005/06 would be cut in half.
Column 3. Baseline date: describes the most recent date, prior to the current planning phase that the indicator was collected.
Column 4. Baseline indicator value is the value of the indicator, on the most recent date prior to the current planning phase. If indicator values (and their date) is not known place a dash.
Columns 5 to 7: Indicator targets: the expected or projected annual future value of the indicator at the end of the first, second, and third year of implementation, as found in the Strategic
Plan. (Y0 = the end of the current financial year being planned, (Y+1) = the next financial year, and Y+2 is the next two years
Column 8 to 11: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the indicator is an MKUKUTA indicator), P = PAF Matrix; R = Ruling
Party Manifesto. This will help link the indicator to other coordinating plans
Column 12. The source is where the indicator is collected (its data source) while means of verification is the supporting evidence that the indicator may have
181
FORM 8A: SUMMARY OF PERSONAL EMOLUMENTS ESTIMATES AT VOTE LEVEL
(MINISTRY/REGION/DISTRICT/URBAN COUNCILS)
VOTE: ………… VOTE NAME …………………………………………………………………..
Item
Number of
Employees
Basic
Salary
Annual
Increment Promotion
Total
Salary
NSSF
10%
LAPF
15%
Pension
Fund 15%
Health
Insurance 3%
Total
Deductions
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
I
II
III
Grand Total
Notes
(Summary Items I, II, and III)
Item 1 = Existing Employees On Payroll
Item 2 = Existing Employees Not On Payroll
Item 3 = New Employees To Be Recruited Y0
Column 6 Gives Total Sum of Columns 3 to 5
Column 11 Gives Total Sum of Columns 7 to 10
182
FORM 8B: SUMMARY OF PERSONAL EMOLUMENTS ESTIMATES AT SUBVOTE LEVEL
(MINISTRY/REGION/DISTRICT/URBAN COUNCILS)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
Sub Vote Item
Number of
Employees
Basic
Salary
Annual
Increment Promotion
Total P.E
NSSF 10% LAPF (15%)
Pension
Fund 15%
Health
Insurance
3%
Total
Deductions
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
ITEM I
ITEM II
ITEM III
Sub Total
ITEM I
ITEM II
ITEM III
Sub Total
Grand Total
Notes
(Summary Items I, II, and III) For each sub-vote, sum the employees and Personal emoluments for item 1, item 2, and item 3
Item I = Existing Employees On Payroll
Item II = Existing Employees Not On Payroll
Item III = New Employees To Be Recruited Y0
Column 7 Gives the total sum of Columns 4 to 6
Column 12 Gives the total sum of Columns 8 to 11
183
FORM 8C: ITEM 1 - SUMMARY OF EXISTING EMPLOYEES ON PAYROLL
VOTE: ………… VOTE NAME ……………………………………………………………………………..
Sub-vote
Number of
Employees
Basic
Salary
Annual
Increment Promotion Total P.E
NSSF
10% LAPF
15%
Pension
Fund 15%
Health
Insurance 3%
Total
Deductions
(1) (2) (3) (4) (6) (7) (8) (9) (10) (11) (12)
TOTAL
Notes
Column 7 – Gives the Total Sum of Columns 3 to 6
Column 12 – Gives the Total Sum of Columns 8 to 11
184
FORM 8D: ITEM II - SUMMARY OF EXISTING EMPLOYEES NOT ON PAYROLL
VOTE: ………… VOTE NAME ……………………………………………………………………………..
Notes
Column 9 – Gives the Total Sum of Columns 3 to 6
Column 12 – Gives the Total Sum of Columns 8 to 11
Sub-vote
Number of
Employees
Basic
Salary
Annual
Increment
Promotion
Total P.E
NSSF 10%
LAPF
15%
Pension
Fund 15%
Health
Insurance 3%
Total
Deductions
(1) (2) (3) (4) (6) (7) (8) (9) (10) (11 ) (12)
TOTAL
185
FORM 8E: ITEM III - SUMMARY OF NEW EMPLOYEES TO BE RECRUITED
VOTE: ………… VOTE NAME ……………………………………………………………………………..
Sub-vote
Number of
Employees Basic Salary
Total P.E
NSSF 10% LAPF 15%
Pension Fund
15%
Health
Insurance 3%
Total
Deductions
(1) (2) (3) (4) (5) (6) (7) (8) (9)
TOTAL
Notes
Column 4 – Gives the Total Sum equals to Column 3
Column 9 – Gives the Total Sum of Columns5 to 8
186
FORM. 8F: LIST OF EMPLOYEES TO BE DELETED FROM THE PAYROLL
VOTE:......................... VOTE DESCRIPTION (Parastatal/MDA/RS/LGA)..................................................
S/No NAME OF
EMPLOYEES CHECK
NUMBER DESIGNATION SALARY SCALE
BASIC SALARY
REASON FOR DELETION
REQUIRED DATE OF DELETION
(1) (2) (3) (4) (5) (6) (7) (8)
1
2
3
.
.
.
.
.
.
.
.
.
.
.
.
187
FORM 9: SCHEDULE OF PERSONAL EMOLUMENTS (ESTABLISHMENT AND STRENGTH)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB
VOTE Description
Salary
Scale
Tshs.
ESTABLISHMENT Actual
Strength at
Present
Variation
+ Over
- Under Y0-2 Y0-1 Y0 Y0+1 Y0+2
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Y0-2 = 2 Preceding years (2 years back) Y0+1 = Forward Budget (Next year)
Y0-1 = Previous year (last Financial Year) Y0+2 = Forward Budget (next 2 years)
Y0 = Current Financial Year
188
FORM 10A: PROJECT PROFILE DATA FORM
A1. Vote Name: ____________________________ Vote Code: ___________
A2 Sub vote Name __________________________ Code /__/__/__/__/__/
A3. Project item Number: ___/___/___/___/___/___/
A4. Date this form was completed ___/___/___/___/___/___/___/
(Day/Month/Year)
A5. Project Name __________________________________
A6. Vote Name __________________________ Code /___/___/
A7. Is this project recurrent in nature?
Yes ….. 1 No …… 2
A8. Implementation Status of Project:
Not started …………………………….. 1
On schedule …………………………… 2
Ahead of schedule …………………….. 3
Behind schedule ………………………. 4
Complete but facility not in use ………. 5
Completed and facility in use ………… 6
(STOP HERE IF YOU HAVE ENTERED CODE 5 OR 6 IN BOX)
A9. Does this Project have feasibility study or project document?
Feasibility study ………..1
Project document ………..2
No Document ……………3
A10. Feasibility study Number of Project __________________
A11. Project document Number _____________________
A12. Project Description( describe major components/activities)
A13. MKUKUTA Cluster and cluster strategy closely related to this project Cluster:
Cluster strategy: ……………………………..
MKUKUTA Cluster: prepare box to
choose………………………………….
MKUKUTA Cluster Strategy
……………………………
A14. Project coverage:
National wide (beneficiaries of project in entire
Country, or in more than one region) ………………….1
Regional (beneficiaries of project in one Region) ……..2
District (beneficiaries of project in one District) ………3
189
A15. Geographic Location of Project.
(a) Nation wide …………………………
(b) Region Name _________________
(c) District Name _________________
(d) LGA
A16. Type of Implementing (Executing) Agency:
Ministry ………1 Parastatal …… …5
Region …….....2 LGA ………….6
Donor …………3 Agency ………..4
A17. Principal Implementing Agency Name ________ Code /__/__/__/
A18. Other Agencies /Collaborators providing critical inputs to project
Implementation: ……….,…………..,………..,……..,
A19. Planned Starting date (Month & Year) /__/__/__/__/
A20. Actual Starting Date (Month & Year) /__/__/__/__/
A21. Planned Completion Date (Month & year) /__/__/__/__/
A22. Latest revised completion Date (Month & Year) /__/__/__/
A23 Status of project funding in Development budget
Adequate Funds included to cover remaining costs
Inadequate Funds to cover remaining costs
Adequate Funds outside Government budget exist to cover remaining cost.
SECTION C: PROJECT FINANCE (EXTERNAL ONLY)
(Please complete this section if project is financed (or to be financed)
from external financial sources?
B1 Total Number of Donors for this Project /__/
B2 The Project Funded through Basket funding
Yes
No
190
[ONE FORM SHOULD BE COMPLETED FOR EACH DONOR
PROJECT, IF THE PROJECT RECEIVES FUNDS FROM MORE
THAN ONE DONOR AGENCY]
DONOR
B3. Donor 1 Name ______________________________________
B4. Donor 1 Code /___/___/___/
B5. Total Donor Commitments (Tshs.) _______________________
B6. Type of Currency in Agreement ____________
B7. Total Donor Commitment in currency of agreement ____________
B8. Date of Agreement (Month/Year) /__/__/__/__/
B9 Funding Terms
Grant …1
Loan ……2
B10 Amount of Grant (Tshs.): ________________________________
B11 Amount of Loan (Tshs.): _________________________________
B12. Type of Disbursement:
Direct ………..1
Cash ………….2
191
FORM 10B: SUMMARY OF PROJECT FORWARD BUDGET ESTIMATES AT VOTe LEVEL (ALL SOURCES)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
DEVELOPMENT EXPENDITURE (in „000 Tshs)
Approved
Budget estimate
Yo-1
Annual Estimate
Yo
Forward Budget
Estimates
Yo+1
Forward Budget
Estimates
Yo+2
1 2 3 4 5
A: Government Funds: - Local
- Foreign
B: Other Sources - Special Funds
- Own Funds
- Bank Loans
- Others
TOTAL BUDGET ESTIMATES
192
Operational Planning Forms
PBF 5.2 (a)
FORM 11A (R): CURRENT YEAR MTEF TARGET VALUE FORM (RECURRENT EXPENDITURE)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD COVERED: FINANCIAL YEAR ……………
SUB-VOTE CODE: ………… SUB-VOTE NAME ……………………………………………………………………………
OBJECTIVE CODE AND DESCRIPTION: ………………………………………………………………………………………………….
CODES AND LINKAGES TARGET IN WORDS QUARTERLY TARGETS FOR THE CURRENT YEAR
Target Code M P R Target Description (3 year) Target Description for the Current Year Units of Measure Q1 Q2 Q3 Q4
1 2 3 4 5 6 7 8 9 10 11
Notes
Each row on this form describes a single target (output). Descriptions of each column are as follows:
Column 1. Target Code is the Segment 2 code at the target level, for example “A03C”
Columns 2 to 4: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the target is an MKUKUTA target), P = PAF Matrix (if it is a PAF
target); R = Ruling Party Manifesto. This will help link the MTEF target to other coordinating plans
Column 5. Target Description (3 year): The target (in words) describing the final state at the end point of the current 3 year MTEF period (i.e. three years in advance); for example “build
500 kilometres of road by 30 June 2011”
Column 6. Target Description (current year): The target (in words) describing the final state at the end point of the current year; for example “build 150 kilometres of road by 30 June
2009”
Column 7. Units of measure: how the level of the target would be measured, for example “number of kilometres.”
Columns 8 to 11: Cumulative Measures for each quarter: is the expected CUMULATIVE level of the target at the end of each quarter in the upcoming financial year. For example if
the target is to build 150 kilometres of road by 30 June 2009” the quarterly cumulates may be 0, 25, 75, 150.
193
PBF 5.2 (b)
FORM 11A (D) CURRENT YEAR MTEF TARGET VALUE FORM (DEVELOPMENT EXPENDITURE)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD COVERED: FINANCIAL YEAR ……………
PROJECT CODE AND NAME:
SUB-VOTE CODE AND NAME:
OBJECTIVE CODE AND DESCRIPTION:
Notes
Each row on this form describes a single target (output). Descriptions of each column are as follows:
Column 1. Target Code is the Segment 2 code at the target level, for example “A03C”
Columns 2 to 4: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the target is an MKUKUTA target), P = PAF Matrix (if it is a PAF
target); R = Ruling Party Manifesto. This will help link the MTEF target to other coordinating plans
Column 5. Target Description (3 year): The target (in words) describing the final state at the end point of the current 3 year MTEF period (i.e. three years in advance); for example “build
500 kilometres of road by 30 June 2011”
Column 6. Target Description (current year): The target (in words) describing the final state at the end point of the current year; for example “build 150 kilometres of road by 30 June
2009”
Column 7. Units of measure: how the level of the target would be measured, for example “number of kilometres.”
Columns 8 to 11: Cumulative Measures for each quarter: is the expected CUMULATIVE level of the target at the end of each quarter in the upcoming financial year. For example if
the target is to build 150 kilometres of road by 30 June 2009” the quarterly cumulates may be 0, 25, 75, 150.
CODES AND LINKAGES TARGET IN WORDS QUARTERLY TARGETS FOR THE CURRENT YEAR
Target Code M P R Target Description (3 year) Target Description for the Current Year Units of Measure Q1 Q2 Q3 Q4
1 2 3 4 5 6 7 8 9 10 11
194
PBF 6.2 (a)
FORM 11B (R): ANNUAL CASH FLOW PLAN FOR RECURRENT BUDGET (FOR MDAs, REGIONS & COUNCILS)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME …………………………………………………………………..
PROJECT CODE: ………………. PROJECT NAME : …………………………………………………
OBJECTIVE No: ………… OBJECTIVE DESCRIPTION:………………………………………………………
TARGET CODE: ………… TARGET DESCRIPTION:………………………………………………………………
NSGRP
Other Tick (√)
Activity
Code Activity Description Source of Financing
Approved
Annual Budget
Planned Quarterly Expenditures (Projected Cash Flow)
Quarter I Quarter II Quarter III Quarter IV
1 2 3 4 5 6 7 8
Government
Own Funds
Total
Government
Own Funds
Total
Notes Each row is a single activity under a target. This row is broken into 3 parts describing the cash flow for Government Financing (subvention or recurrent funding) and own funds. Descriptions of
each column are as follows:
Column 1. Activity Code: Segment 2 code for the activity, for example: A02C03
Column 2. Activity Description: the activity description in words, for example “Train 100 people in results management by 30 June 2007”
Column 4. Approved Annual Budget: the total budget (in Tanzanian Shillings) for the current financial year. This is divided into 2 sources of funds: Government and Own Funds. Own
funds apply only to LGAs and Executive Agencies and may include revenues collected and contributions from citizens or communities.
Columns 5 to 8. Quarter I, II, III, and IV: the projected cash flow (in Tanzanian Shillings), for each quarter, divided into 2 sources of funds: Government and Own Funds.
195
PBF 6.2 (b)
FORM 11B (D): ANNUAL CASH FLOW PLAN FOR DEVELOPMENT BUDGET (FOR MDAs, REGIONS & COUNCILS)
VOTE: ………… VOTE NAME ……………………………………………………………………………..
SUB-VOTE CODE: ………… SUB-VOTE NAME …………………………………………………………………..
PROJECT CODE: ………………. PROJECT NAME : …………………………………………………
OBJECTIVE No: ………… OBJECTIVE DESCRIPTION:………………………………………………………
TARGET CODE: ………… TARGET DESCRIPTION:………………………………………………………………
NSGRP
Other Tick (√)
Activity
Code Activity Description
Source of
Financing
Approved
Annual Budget
Planned Quarterly Expenditures (Projected Cash Flow)
Quarter I Quarter II Quarter III Quarter IV
1 2 3 4 5 6 7 8
Foreign
Local
Own Funds
Total
Foreign
Local
Own Funds
Total
Notes Each row is a single activity under a target. This row is broken into 3 parts describing the cash flow for Government Financing (subvention or recurrent funding) and own funds. Descriptions of
each column are as follows:
Column 1. Activity Code: Segment 2 code for the activity, for example: A02C03
Column 2. Activity Description: the activity description in words, for example “Train 100 people in results management by 30 June 2007”
Column 4. Approved Annual Budget: the total budget (in Tanzanian Shillings) for the current financial year. This is divided into 2 sources of funds: Government and Own Funds. Own
funds apply only to LGAs and Executive Agencies and may include revenues collected and contributions from citizens or communities.
Columns 5 to 8. Quarter I, II, III, and IV: the projected cash flow (in Tanzanian Shillings), for each quarter, divided into 2 sources of funds: Government and Own Funds.
196
PBF 6.1(a)
FORM 14B (R): ANNUAL ACTION PLAN FOR RECURRENT BUDGET FOR THE FY ………. …..
VOTE NO: ……………………. VOTE NAME: ……………………………..
SUB-VOTE CODE: …………….. SUB-VOTE NAME: …………………….....
Objective
Code and
Description
Target
Code and
Description MK
UK
UT
A
Tar
get
Man
ifes
to
Tar
get
Activity Code
and
Description
Pla
nned
Sta
rt D
ate
Pla
nned
Fin
ish D
ate
Appro
ved
Budget
Work
Day
s
to b
e sp
ent
on t
he
Act
ivit
y
Time Frame
Respon-
sible
Person
J
A
S
O
N
D
J
F
M
A
M
J
1 2 3 4 5 6 7 8 9 10 11
Notes
Each row of this form describes a single activity. The form should only be used internally.
Column 1: the Objective Code (A, B, C, etc) as well as the objective‟s description, for example: “A. Improve Access to markets.” Part of the Segment 2
code.
Column 2: the Target Code (A01C or B02S etc) as well its description, for example: “A01D. Construct 25 Kilometres of road by June 2008.” Column 3:
place a check mark (√) if the target is an MKUKUTA Target. If it is non-MKUKUTA leave this column blank
Column 4: place a check mark (√) if the target is in the ruling party manifesto. If it is not leave this column blank
Column 5: the Activity Code (A01C03 or B02S01 etc) as well as the activity‟s description, for example: “A01D05. Train 100 people in Results
Management by June 2008.” Part of the Segment 2 code.
Column 6: the date at which the activity should start. The start of an activity should include its procurement, where applicable.
Column 7: the date at which the activity should be completed.
Column 8: the approved budget of the target or activity. The target‟s budget is the sum of the budgets for all activities under it
Column 9: the expected work days on the activity. Some activities may have long durations in which implementation is sporadic. For example an
activity “supervision of procurement” may take place over a 3 month period, but may only involve 2 work days per month.
Column 10: a Gantt chart representation of the implementation of the activity, from its planned start to its planned finish. This may involve putting X‟s in
each column, filling the column (i.e. shading it) or any other graphical representation
Column 11: the person responsible (accountable) for the completion of the activity. This should be listed as a position, such as “Assistant Director for
Fisheries Development.”
197
PBF 6.1(b)
FORM 14B (D): ANNUAL ACTION PLAN FOR THE DEVELOPMENT BUDGET FOR THE FY ………. ……..
VOTE NO: ……………………. VOTE NAME: ……………………………..
SUB-VOTE NO: …………….. SUB-VOTE NAME: ……………………..
PROJECT CODE ……………. PROJECT NAME …………….
Objective
Code and
Description
Target
Code and
Description MK
UK
UT
A
Tar
get
Man
ifes
to
Tar
get
Activity Code
and
Description
Pla
nned
Sta
rt D
ate
Pla
nned
Fin
ish D
ate
Appro
ved
Budget
Work
Day
s
to b
e sp
ent
on t
he
Act
ivit
y
Time Frame
Respon-
sible
Person
J
A
S
O
N
D
J
F
M
A
M
J
1 2 3 4 5 6 7 8 9 10 11
Notes
Each row of this form describes a single activity. The form should only be used internally.
Column 1: the Objective Code (A, B, C, etc) as well as description, for example: “A. Improve Access to markets.” Part of the Segment 2 code.
Column 2: the Target Code (A01C or B02S etc) as well its description, for example: “A01D. Construct 25 Kilometres of road by June 2008.” Column 3:
place a check mark (√) if the target is an MKUKUTA Target. If it is non-MKUKUTA leave this column blank
Column 4: place a check mark (√) if the target is in the ruling party manifesto. If it is not leave this column blank
Column 5: the Activity Code (A01C03 or B02S01 etc) as well as the activity‟s description
Column 6: the date at which the activity should start. The start of an activity should include its procurement, where applicable.
Column 7: the date at which the activity should be completed.
Column 8: the approved budget of the target or activity. The target‟s budget is the sum of the budgets for all activities under it
Column 9: the expected work days on the activity. Some activities may have long durations in which implementation is sporadic. For example an
activity “supervision of procurement” may take place over a 3 month period, but may only involve 2 work days per month.
Column 10: a Gantt chart representation of the implementation of the activity, from its planned start to its planned finish. This may involve putting X‟s in
each column, filling the column (i.e. shading it) or any other graphical representation
Column 11: the person responsible (accountable) for the completion of the activity. This should be listed as a position, such as “Assistant Director for
Fisheries Development.”
198
Performance Reporting Forms MEF 7.1
FORm 12A: CUMULATIVE QUARTERLY MTEF TARGET MONITORING FORM
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD COVERED: QUARTER ENDING ……………………………... IN THE FINANCIAL YEAR …………………………
BUDGET COVERAGE: (DEVELOPMENT OR RECURRENT)………………………………………………………..……………
PROJECT CODE AND NAME: ……………………………………………………………………………………………..…
SUB-VOTE CODE AND NAME:…………………………………………………………………………………………..…..
OBJECTIVE CODE AND NAME: ……………………………………………………………………………..………………
Notes Each row is a single target. Descriptions of each column are as follows:
Column 1. Target Code is the Segment 2 code at the target level, for example “A03C”
Column 2 to 4: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the target is an MKUKUTA target), P = PAF Matrix (if it is a PAF target);
R = Ruling Party Manifesto. This will help link the MTEF target to other coordinating plans
Column 5. Annual Physical Target Description (current year): The target (in words) describing the final state at the end point of the current year; for example “build 150 kilometres of
road by 30 June 2009”
Column 6: this is the cumulative total as of the current quarter, for example “60 kilometres were constructed by 30 March 2009.”
Column 7 Estimated % complete: if the target is quantitative divide the Actual Value by the Planned Value, for example 60 kms built / 150 km planned = 40%
Columns 8-10 (Assessment): Check or tick one of the columns “on track,” “at risk” or „unknown”
Columns 11-12: Cumulative Actual Expenditure as of Quarter XXX: this is the actual expenditure (not the disbursed or the released amount) while the Cumulative Budget is the
amount that was expected to be spent (according to the cash flow plan) by quarter XXX.Column 13: % spent: the actual expenditure to date divided by the budgeted expenditure for the
financial year
CODES AND
LINKAGES
ANNUAL
PHYSICAL
TARGET
CUMULATIVE STATUS ON MEETING THE
PHYSICAL TARGET EXPENDITURE STATUS
REMARKS ON
IMPLEMENTATION
Target
Code
M P R Target Description Actual Progress
Estimated %
Completed On
tra
ck
A
t
Ris
k
Un
kn
ow
n
Cumulative
Budget
Cumulative
Actual
Expenditure % Spent
1 2 3 4 5 6 7 8 9 10 11 12 13 14
199
MEF 7.2
FORM 12B: QUARTERLY CUMULATIVE MILESTONE (PRIORITY) MONITORING FORM
VOTE: ………… VOTE NAME …………………………………………………..
PERIOD COVERED: QUARTER ENDING …………….. IN THE FY ……………………
Planned Key Priority
Interventions or
milestones
Current Implementation
Status
Assessment
Comments
On tr
ack
At
Ris
k
Off
-tra
ck
1 2 3 4 5 6
Notes Each row is a single milestone. Descriptions of each column are as follows:
Column 1: Institution’s Key Priority intervention or milestone. Should be selected from the Institution‟s MTEF
Column 2 Brief implementation on the status for each priority area
Columns 3, 4, & 5 General Assessment of key priority areas. Tick one only.
Column 6 Comment: describe possible reasons for variation (if not on track) as well as remedial actions planned or
implemented for each priority area
200
MEF 7.3
FORM 12C: OUTCOME INDICATOR MONITORING FORM
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD: RESULTS AS OF THE END OF FINANCIAL YEAR …………………………
Objective
and Code
Indicator
Name and
description
BASELINE
INDICATOR
TARGET VALUES
(AS PER SP)
ACTUAL
INDICATOR
VALUES CLASSIFICATIONS
Source of Data /
Means of
verification
Base-
line
Date
Baseline
Indicator
Value Y0 Y+1 Y+2 Y0 Y+1 Y+2 MDG M P R Comment
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Notes
Each row on this form describes a single performance indicator. Indicators are used to measure progress towards meeting objectives; they are performance
measures. Descriptions of each column are as follows:
Column 1. Objective Code and Description: the objective (in words) and its code, being measured by the indicator, for example: “B. Increase Access to Education”
Column 2. Indicator Name and Description: this is in two parts. The indicators name should be in italics while its description (how the indicator is calculated) should be listed below it in a
bullet or in parenthesis, for example:
Annual Salary Arrears as a percentage of total annual salaries
This indicator takes the sum of the arrears paid from January to December and divides it by the total salaries paid over the same period. It is an inexact measure of the quality of salary
administration since arrears arise due to delays in tracking recruitment, promotion or transfer; the more time efficient these processes, the less arrears will arise.
Column 3. Baseline date: describes the most recent date, prior to the current planning phase that the indicator was collected.
Column 4. Baseline indicator value is the value of the indicator, on the most recent date prior to the current planning phase.
Columns 5 to 7: Indicator targets: the expected or projected annual future value of the indicator at the end of the first, second, and third year of implementation, as found in the Strategic Plan.
(Y0 = the end of the current financial year being planned, (Y+1) = the next financial year, and Y+2 is the next two years
Columns 8 to 10: Actual Indicator values: the actual or realised value of the indicator at the end of the first, second, and third year of implementation, as found in the Strategic Plan. (Y0 = the
end of the current financial year being planned, (Y+1) = the next financial year, and Y+2 is the next two years
Column 11 to 14: M, P, R” Place a check mark (tick or X) in the columns M, P, R as follows: M = MKUKUTA (if the indicator is an MKUKUTA indicator), P = PAF Matrix; R = Ruling Party
Manifesto. This will help link the indicator to other coordinating plans
Column 15. The source is where the indicator is collected (its data source) while means of verification is the supporting evidence that the indicator may have
Column 16 Comment: any comment describing implementation
201
MEF 7.4 (a)
FORM 13A: QUARTERLY CUMULATIVE FINANCIAL OVERVIEW FORM
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD: CUMULATIVE RESULTS FOR THE QUARTER ENDING …………….. IN THE FINANCIAL YEAR ……………
ITEM / COMPOSITION
BUDGET ACTUAL REVENUE/RELEASED ACTUAL EXPENDITURE
Amount in
TShs.
(Millions)
% of Total
Budget
Amount in
TShs.
(Millions)
Amount Received as a
% of the Budget
Amount
(4 ÷ 2)
Amount in
TShs
(Millions)
Actual % of the
Budget Amount
(6 ÷ 2)
Actual %
of amount
released
(6 ÷ 4)
1 2 3 4 5 6 7 8
EXPENDITURE BY BUDGET
CATEGORY
P.E 1000 500 400 40 80
O.C
Development Local Funds
Development Foreign Funds
Total 100
EXPENDITURE BY MKUKUTA
CATEGORY (Excludes PE)
MKUKUTA
NON-MKUKUTA
Total 100
EXPENDITURE BY MKUKUTA
CLUSTERS (Excludes PE)
Cluster 1
Cluster 2
Cluster 3
Total 100 100
Notes
This report should be printed from the Integrated Financial Management System (IFMS)
202
MEF 7.4 (b)
FORM 13B: QUARTERLY CUMULATIVE FINANCIAL DETAILED FORM
VOTE CODE AND NAME: ……………………………..
PERIOD: CUMULATIVE RESULTS FOR THE QUARTER ENDING …… IN THE FY…..
Notes
This report should be printed from the Integrated Financial Management System (IFMS)
ITEM / COMPOSITION
BUDGET ACTUAL REVENUE/
RELEASED
ACTUAL EXPENDITURE
Amount
in TShs.
(Million
s)
% of
Total
Amount
in TShs
(Million
s)
Amount
Released as a
% of the
Budget
Amount (4 ÷
2)
Amount in
TShs
(Millions)
Actual
Value as a
% of the
Budget
Amount
(6 ÷ 2)
Actual %
of
amount
released
(6 ÷ 4)
1 2 3 4 5 6 7 8
EXPENDITURE BY SUB-
VOTE (Recurrent Only)
Sub-Vote 1001
Sub-Vote 1002
ETC
Total 100%
EXPENDITURE BY SUB-
VOTE BY PROJECT
(Development funds only)
Sub-Vote 1
Project 1
Project 2
Sub-Vote 2
Project 1
Project 2
Total 100%
REVENUES (NON-TAX)
COLLECTION
Revenues Collected
Revenues Retained
SOURCE OF FUNDING
(LGAs and Agencies
ONLY)
Subvention
Own Sources N/A N/A
Total 100%
203
Internal Forms PBF 4.1
FORM 14A: SUMMARY OF THE STRATEGIC PLAN
VOTE: ………… VOTE NAME ……………………………………………………………………………..
PERIOD COVERED: FROM FINANCIAL YEAR ………. TO THE FINANCIAL YEAR ……
Mission
………………………………………………………………………………………………
Vision
…………………………………………………………………………………………….
Core Values
…………………………………………………………………………………………………
Objective Strategy Sub-Vote Target
Notes
This form should be attached as an annex to the strategic plan (as per the manual). It lists all elements of the strategic plan. Each row is a target
204
MTEF Presentation Format (For Y0 to Y0+2) Overview and Policy Statements
Executive Summary
Statement of the Chairperson
Statement by Council Director
Chapter 1: Environmental Scan
1.1. Stakeholder analysis and Profile
1.1.1. Names of key stakeholders
1.1.2. Needs/expectations of stakeholders
1.2. SWOT analysis
1.2.1. Strength and Weaknesses
1.2.2. Opportunities and Threats
1.3. Key Issues
Chapter 2: Reviewed Institutional Perspectives
2.1 Vision of the Council
2.2 Mission Statement
2.3 Objectives
2.4 Policies and Strategies.
Chapter 3: Budget Performance Review
3.1 Performance - Y0-2
3.1.1* Annual Approved Revenue Vs Actual
3.1.2 Annual Approved Expenditure Vs Actual
3.1.3 Planned targets Vs Achievements
3.1.4 Problems Experienced and Future Strategies
3.2 Mid Year Review – Y0-1
3.2.1* Annual Approved Revenue Vs Actual
3.2.2 Annual Expenditure Vs Actual
3.2.3 MTEF targets Vs Actual achievement
3.2.4 Problems/Limitations to effective implementation
Chapter 4: Estimates for MTEF (Y0 - Y0+2)
4.1 Summary of Annual and Forward Budget Estimate Rec. & Dev. (Form 1)
4.2 Recurrent Expenditure Forward Budget (Form 2)
4.3 3 Year MTEF Target Value Form (Form 3A (R)
4.4 3 Year MTEF Target Value Form (Form 3A (D)
4.5 Activity Costing Sheet (Form 3B)
4.6 Recurrent Expenditure Summary of Draft Estimates (Form 3C)
4.7 Domestic Revenue Forward Budget (Form 4)
4.8 Domestic Revenue (Form 5)
4.9 Development Expenditure Detail of Annual and Forward Budget (Form 6)
4.10 Results Framework (form 7)
4.11 Summary of Personal Emoluments Estimates per Vote (Form 8A)
4.12 Summary of Personal Emoluments Estimates per Sub Vote (Form 8B)
4.13 Item I – Summary of Existing Employees on Payroll (Form 8C)
4.14 Item II – Summary of Existing Employees Not on Payroll (Form 8D)
4.15 Item III – Summary of New Employees to be Recruited (Form 8E)
4.16 Schedule of Personal Emoluments Establishment and Strength (Form 9)
4.17 Project Profile Data Form (Form 10A)
4.18 Summary of Project Forward Budget Estimates All Sources (Form 10B)
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