ECONOMIC AND FISCAL GOVERNANCE PROGRAMME - EFGP RESULTS FUNDING

The Tanzanian public administration lack in capacity, the domestic revenue mobilisation is low in international comparison and the budget process exhibits a number of weaknesses including large discrepancies between approved budgets and execution. This has negative effects on service delivery, public investments and the possibility to implement priorities as decided through the democratic process. The lack of a credible budget process undermines transparency, participation and accountability.The Economic and Fiscal Governance Programme (EFGP) will address the above development constraint by focusing on the domestic resource mobilisation, the credibility of the budget and the implementation of the budget. The main results the support more specifically aims to contribute to are better compliance to procurement regulations and that the budget becomes more credible with execution getting closer to budget with regard to: aggregate expenditures, domestic tax revenue, non-tax revenue and, central government transfer to districts. Incentives for change will be created by linking additional budget resources to progress in these areas. This makes up the contribution's main component and more than 98 percent of the total contribution budget. It should be noted that this is a new modality in a complex setting where the intervention logic cannot be fully analysed which bring a high level of uncertainty to the outcome. To this, a smaller component with complementary technical support is added to assist in the development of laws, regulations, systems and capacity associated with the contribution's overarching objective. The intention is to be able to respond with technical support to special needs in a timely manner. It will be more flexible and be able to more quickly respond to identified needs than what is the case with the technical support currently being provided through Public Financial Management Reform Programme and the Public Expenditure Review Basket Fund for which the decision processes often takes a long time. An example of a potentially strategic activity which could be financed by the complementary technical support component is an exchange between the Tanzania Parliament's Budget Committee and its Swedish equivalent with the purpose to learn from how Sweden managed to the break the cycles of overcommitted budgets for which there were not sufficient funding.In the long term, the intervention will strengthen Tanzania's capacity to pursue its strategies for development and poverty reduction.