This Public Expenditure Review (PER) forFY00, provided support to the Government of Tanzania in thepreparation of its budget, and Medium Term ExpenditureFramework (MTEF), and performed as well an externalevaluation of the country's budget performance. Thereport contains two volumes, the Main Report (v. I) firstdescribes the main features of the PER process, to thenpresent the main findings emerging from a review of fiscalperformance, and public expenditure management in Tanzania.A discussion of systemic fiscal issues, critical toenhancing the effectiveness of public expenditure follows,to reach a series of updated sectoral expenditure reviews,prioritizing on education, health, water, agriculture,works, land and justice. Volume II, presents theGovernment's MTEF for FY-01/03, in which themacroeconomic context is described, providing a crosssectoral MTEF within the priority sectors. In addition, adetailed discussion of the public sector reform program ispresented, including discussions on the HIV/AIDS epidemic,identified as a key challenge to development efforts,requiring a multi-sectoral approach to contain its spread.Despite progress in consolidating the budget process, andmacroeconomic policy, the transitional status of thecountry's economy, makes macroeconomic managementparticularly difficult. The report suggests rethinking theMTEF's contingency plans, within a flexible frameworkto further improve the linkages between prioritization, andthe budgetary process.
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