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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