ll. Findings of the CRM
Predictability of government economic policy
555.
Since independence, Tanzania’s development agenda was driven by the quest for economic growth and
development and addressing the scourge of poverty. These goals were pursued through a succession of longand medium-term development plans. With economic liberalisation, focus shifted to more short-term, needsbased programmes developed within the framework of support from Bretton Woods Institutions. The planning
process became ad hoc, leading to a loss of focus over the long-term strategic direction. Some planning process
weaknesses were overlapping jurisdictions, especially at the institutional level, and unsuitable planning tools for
effective government planning. Recognising these weaknesses, in 1994 government began developing a long
term vision (Vision 2025) which was launched in 1999. Vision 2025 aims at achieving economic transformation
and development, leading to middle income status by 202590.
556.
In February 2008, the President issued a Notice on the assignment of Ministerial Responsibilities (Instruments)
vide Government Notice No. 20. This led to transfering the planning function from the Ministry of Planning and
Economic Empowerment (now merged with the Ministry of Finance to form a new Ministry of Finance and
Economic Affairs) to a new Planning Commission, under the Office of the President. The Planning Commission is
a network of professionals with confirmed expertise and competence, responsible for monitoring, analysing and
advising on major and long-term sectoral policies and socio-economic developmental issues, with a focus on
policy-makers’ needs on current policy issues. Given the Planning Commission’s highly important functions, the
CRM believes that its capacity should best be strengthened for it to effectively carry out its mandate.
557.
Over the years, efforts were made to put in place effective procedures for developing the medium-term fiscal
framework against which the budget is prepared91. Since the late 1990s, relatively conservative revenue forecasts
and increased predictability in budget support financing flows contributed to a realistic budget framework.
Forecasting accuracy consequently improved. Government has recently taken active steps to improve the
Medium Term Expenditure Framework (MTEF) by upgrading macroeconomic modeling and strategic budget
allocation tools, among others.
558.
While Tanzania has preserved fiscal discipline and stability relatively well, a number of challenges will need to
be addressed to maintain credibility. The main weaknesses of the current PFM system include weak linkages
between national development plans and annual budgeting through MTEF; weak linkages between spending
activities in development projects and the recurrent cost of their operations; lack of a fully operational integrated
procurement management information system; lack of consolidated fiscal oversight as well as inadequate
oversight of LGAs and PEs.
Oversight and control measures
559.
To address some of the afore-mentioned weaknesses, Government strengthened budget oversight functions by
the enactments of Public Audit Act No.11 of 2008, which empowered and enhanced the operational independence
of the Controller and Auditor General (CAG), and Parliamentary Accounts Committee functions. The CAG is
protected by law from political interference. However, the President has powers to remove the CAG without final
direct consent of the judiciary or the legislature, even though this has never happened in practice. The National
Audit Office capacity was strengthened by recruitment and training, and given tools and equipment. The CAG
also improved external auditing by introducing risk-based auditing methodology and recently automated the
audit process. CAG audit reports now show signs of better compliance with financial legislation and regulations.
The CRM noted the importance of these initiatives and the need to continue efforts to strengthen the budget
oversight function.
560.
Regarding public procurement, Government has faced particular challenges, especially with regard to the number
and quality of procurement practitioners at LGA level. To acquire knowledge about the Public Procurement Act
90
91
The Tanzania Five Year Development Plan 2011/2012-2015/2016, United Republic of Tanzania (2011).
United Republic of Tanzania: Improving Preparation, Execution and Reporting of the Budget, IMF (April 2011).
120
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