2010年-世界发展银行全球_United_Republic_of_Tanzania_-_Public_Expenditure_and_Financial__Accountability_Review_2009_127页_2mb

Summary of the United Republic of Tanzania Public Expenditure and Financial Accountability Review 2009

Core Content

The Public Expenditure and Financial Accountability Review (PEFAR) 2009 was a collaborative effort by the Macro and Public Financial Management (PFM) Groups of the Tanzania Public Expenditure Review (PER) Working Group, including the World Bank, IMF, DFID, JICA, and other development partners. The review aimed to support the budget process and evaluate public expenditure and financial management practices in Tanzania.

Main Findings and Recommendations

1. Macroeconomic and Budget Outlook

• Tanzania's growth rate has been robust, averaging between 5 and 7% annually over the last decade.
• The global financial crisis caused a slowdown in growth to 5-6% in 2009 and 2010, but a return to 7-8% growth is expected by 2011 and 2012, contingent on global recovery and Tanzania's investment climate.
• Inflation reached double digits in 2008-09 but is projected to decline to single digits by mid-2010.
• The government effectively managed the crisis by securing additional resources from the IMF and implementing a targeted rescue package focusing on agriculture, mining, and tourism.
• The government should continue to implement prudent fiscal policies to maintain low inflation and fiscal deficit.

2. Budget Allocation - 2009/10

• The Planning and Budget Guidelines (PBGs) provide limited strategic guidance to spending agencies, particularly in the Medium Term Expenditure Framework (MTEF).
• The MKUKUTA (Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania) policy remains a top priority, with around 70% of the total budget allocated to it.
• The key sectors (education, health, water, agriculture, roads, and energy) received about 60% of the budget, but expenditure composition in these sectors requires further attention.
• Roads saw a significant drop in development budget allocation, leading to underfunding of around US$ 130 million, despite increased allocations for rural roads and MCC components.
• Infrastructure maintenance has not been adequately addressed in the budget, especially in education and health, where allocations are less than 1% of sector budgets, despite significant investment.
• The wage bill accounts for 33% of the total budget, equivalent to 9.3% of GDP, with allowances making up 18% of the wage bill.
• The new Medium Term Pay Policy (MTPP III) should aim to maintain fiscal sustainability and prioritize public investment by keeping wage bill-to-GDP ratio in check.

3. Budget/Actual Expenditure Consistency - 2008/09

• The recurrent budget deviation index for MDAs declined to 13.1% in 2008/09, but this was due to reallocations for salary arrears.
• Only 52% of the development budget was spent in 2008/09, with LGAs performing even worse.
• Delays in fund releases and limited capacity to execute capital-intensive projects are major causes of low execution rates.
• The government should strengthen the MTEF to improve predictability of resources and ensure timely budget execution.

4. Public Financial Management (PFM) Assessment

• National Audit Office (NAO) reports highlighted serious shortcomings in the current PFM system, particularly in procurement compliance.
• Central government entities had procurement irregularities totaling over Tsh 6.6 billion, while local government compliance was at 45%.
• 13% of procurement activities were awarded without competitive bidding.
• Weak internal controls led to undocumented expenditures (over Tsh 17 billion for MDAs and Tsh 5 billion for LGAs).
• Poor asset management and inadequate documentation of financial transactions jeopardize cash management and resource accountability.
• The government and development partners need to strengthen PFM systems, especially in payroll, non-salary expenditure, and procurement.
• The World Bank and DFID supported the PEFAR capacity building program, which is crucial for improving planning and budgeting in Tanzania.

5. Sector-Specific Issues

• Education: Secondary education receives 11% of education spending, while higher education accounts for 24%, despite being a priority. Capitation grants remain underfunded.
• Health: Budgetary allocations continue to decline in per capita terms and as a percentage of GDP. Maternal and child health programs remain underfunded.
• Water: The budget composition needs more attention to ensure effective resource use.
• Agriculture: The impact of the global crisis was significant, and strategic planning is needed to align with MKUKUTA objectives.
• Energy and Roads: Both sectors experienced declines in capital investment, with roads facing severe underfunding.

Key Recommendations

• Strengthen the MTEF to ensure strategic planning and predictable resource allocation.
• Improve procurement compliance and controls across all levels of government.
• Develop a new MTPP III to align wage bill and allowances with fiscal sustainability and public investment priorities.
• Enhance the capacity of MDAs and LGAs to prepare and execute capital-intensive projects.
• Improve the economic and functional classification of government spending to better assess growth and equity.
• Ensure proper documentation and audit trails for all financial transactions to improve accountability and transparency.
• Address the backlog in infrastructure maintenance to ensure sustainable development.
• Improve the implementation of D by D policy by ensuring formula-based allocation to reduce inequality in district-level resource distribution.

Conclusion

The PEFAR 2009 review highlights the need for improved public financial management, strategic budget planning, and enhanced accountability in Tanzania. While the government has made progress in decentralization, domestic revenue mobilization, and response to the global crisis, systemic weaknesses in budget execution, procurement, and resource allocation persist. Addressing these issues is essential to achieving growth and poverty reduction goals outlined in MKUKUTA and MTEF.