Promoting good financial governance in Tanzania

Context

The Tanzanian Government is committed to advance economic and social development, and is focusing on investment to achieve this. It needs to increase domestic revenues, improve procurement processes and strengthen budgetary control.

More transparent processes and a better dialogue with the private sector and the public on fiscal policy decisions are needed in order for the population to recognise the positive impacts of tax payments.

For the first time, Zanzibar will also be supported in improving internal and external financial control and optimising procurement processes.

Objective

The Government of Tanzania is increasing domestic revenues and spending them effectively and transparently.

Approach

The project operates in four areas of action:

1. Supporting national and local tax authorities
   The project strengthens administrative capacities in order to mobilise domestic revenues. This includes promoting data management and data exchange between the tax authorities and other government institutions, and providing support with data analysis.
2. Promoting budgetary control
   The project promotes cooperation between public institutions in following up on audit recommendations in order to make public spending more efficient. In addition, the project develops individual and institutional capacities for procurement in line with international standards.
3. Improving the conditions for evidence-based fiscal policy
   The project strengthens the conditions for transparent fiscal policy, including revenue and spending policy. Improved dialogue platforms aim to build trust between the government and taxpayers.
4. Developing capacities to implement the public finance management reform programme (PFMRP) in Zanzibar
   For the first time, the project is supporting Zanzibar in implementing public finance reforms by providing training on internal and external financial control and on public procurement.

Last update: October 2024