United Republic of Tanzania Public Expenditure Review FY03 : Managing Public Expenditures for Poverty Reduction - Report on Fiscal Developments and Public Expenditure Management Issues

World Bank

Washington, DC

关键词: ACCOUNT;    ACCOUNTABILITY;    ACCOUNTING;    ACCOUNTS;    AGGREGATE FISCAL DISCIPLINE;   

RP-ID  :  26807

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In line with the Poverty ReductionStrategy (PRS) context, this external evaluation looks atbudgetary developments, primarily through the lens of thePRS, thus with important implications for the PublicExpenditure Review (PER) process, which has evolved into theprincipal analytic instrument to support the translation ofPRS objectives and strategies, into budgets. Overall fiscalpolicy remained very conservative in FY02, and FY03.Tanzania continues to use a cash budget system that strictlyconstrains spending, and commitment levels to short termavailability of cash. While the system was clearly useful,improvements in budget and aid management put the continueduse of a cash budget system into question; thus it isadvisable to revisit options for relaxing the stringency ofthe cash budget. Nevertheless, the revenue to gross domesticproduct (GDP) ratio, fell marginally to 12.1 percent inFY02, but is projected to reach 12.5 percent in FY03,therefore, with respect to new tax policy measures, it willbe important to pay attention to the impact of such measureson poverty and growth. However, given that foreignassistance increased in FY02 to 5.9 percent of GDP, and isprojected to increase to 7.9 percent in FY03, there is theneed to pursue policies that would support Tanzania'sinternational competitiveness, and minimize the potential"Dutch disease" effects of aid. Upon review of themicro-aspects of development assistance, it would be usefulto improve the scope of the information, and in turn, theMinistry of Finance ( MoF) should routinely obtain thisinformation, so as to incorporate/synchronize it withcurrent aid flow data bases. Further recommendations addressfunctional allocation of resources and distribution,requirements concerning auditing, and reporting standards,and, the inclusion of participatory monitoring andevaluation, as an important feedback mechanism into the PER process.