Tanzania has carried out an annualPublic Expenditure Review (PER) process since 1997/98 withinterrelated twin objectives of supporting the budgetprocess as well as undertaking an external review of fiscaldevelopments. The Public Expenditure and FinancialAccountability Review (PEFAR) aims to integrating twodiagnostic exercises to facilitate a comprehensiveassessment of Public Financial Management (PFM). This reportpresents the findings of the external review of fiscaldevelopments. The overall purpose of the PEFAR is to provideGovernment of Tanzania (GoT) and development partners with acomprehensive, integrated and candid assessment ofTanzania's key fiduciary risks as reflected inGoT's resource allocation, resource management andcontrol, resource utilization and accountability processes,and to make recommendations for improving the PFM framework,institutional performance and capacity building.