PUBLIC EXPENDITURE REVIEW

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PUBLIC EXPENDITURE REVIEW

• RAPID BUDGET ANALYSIS 2009
• Presentation for the
• PPP/PER Annual Consultative Meeting
• 20/11/2009
• Joint work of DPs

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Presentation Outline
Macro-fiscal framework Budegt Allocation Impact/
equity
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(No Transcript)
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• Global crisis
• The FY09/10 budget was developed in the
  relatively difficult circumstances of a major
  international crisis that led to a growth
  slowdown in Tanzania.
• The rescue package
• The Government responded adequately to the crisis
  by identifying a narrowly-targeted and time-bound
  rescue package, while acting to counteract the
  macroeconomic effect of the slowdown by modestly
  expanding budgeted public expenditures.
• Improve the reliability of the fiscal framework
• More prudent and grounded forecasting of revenue
• More robust estimaters of Budget Support
• DPs need to avoid last minutes changes or
  additonal conditions.

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Ensure better balance between current consumption
and capital investment
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Ensure better balance between current consumption
and capital investment
2009/10 Overall budget by Economic Nature of
Spending
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Prioritize additional resources towards MKUKUTA
MKUKUTA cluster allocations as of total
expenditure (including LGA transfers and MDA
wages)
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Continue to increase allocations to key sectors
while paying attention to sector expenditure
composition and quality of expenditures
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Control proliferation of allowances in MKUKUTA
Sectors
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Pay attention to infrastructure maintenance in
health and education budgets
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D by D policy Continue the implementation to
reach the 25 objective of LGA transfers by 2010
Overall share of LGA spending Increase from 21
in 2008/09 to 23 in 2009/10
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Key messages on budget allocation

• MKUKUTA Prioritize MKUKUTA allocations in line
  with increase in total expenditure, while paying
  attention to quality of expenditures
• Capital v.s Current Increase allocations for
  capital investment, in line with MKUKUTA
  objectives for growth
• Allowances Control proliferation of allowances
  in MKUKUTA Sectors
• Sectors Continue to increase allocations to key
  sectors while paying attention to sectors
  expenditure composition and quality of
  expenditures
• Maintenance policy Increase the share of
  infrastructure maintenance in health and
  education budgets.
• D by D policy Continue to strengthen the
  implementation to reach the 25 objective of LGA
  transfers.

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Improve execution of the budget, especially
development budget
MDAs development budget, release and expenditure
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Address inequity issue among districts
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Key messages on Impact/Results

• Improve budget execution, especially development
  budget, through
• Improving capacity to plan and execute large
  capital investment projects in key sectors
• Continuing to improve cash flow and procurement
  plans in key sectors
• Implementing and monitoring improved cash flow
  and procurement plans
• Improve quality of aid submissions and
  predictability by DPs
• Address inequity issue among districts
• Fast track and implement proposed national
  incentive scheme
• Allocate equalization grant to underserved LGAs
• Allocate PE according to formula/desired
  postings.

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• ASANTE SANA