Public Financial Management Reform Programme in Tanzania

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

Public Financial Management Reform Program in Tanzania aims at supporting sustainable economic development by strengthening country’s public financial management. Through it the provision of public services will be strengthened which is an essential part of poverty reduction. The program has been implemented since 1998 and it has already achieved several improvements in public financial management. The program has developed a comprehensive debt management system and financial planning model, that supports long-term and sustainable macro- economic planning. The quality of budgeting and transparency of budgeting process has also been developed. The program has broadened Tanzania’s tax base and own fund-raising. The electronic systems developed through the program together with strengthened financial management will decrease the risk for mismanagement. The capacity of procurement authority has strengthened which will improve the accountability of the use of public finances and decrease the risk for corruption. The program has also strengthened the capacity of state auditors which will help the role of controlling authorities like the parliament in supervising the use of public finances. The on-going IV phase of the program will continue to develop comprehensively the financial management by supporting and developing the tax collection, the quality of budgeting and planning, results-based allocation and utilization of resources as well as transparency, accountability and effectiveness of the administration.