1. Induction Course Protea Courtyard Hotel 1

2. Government Revenues 2 Revenues Domestic Revenue Tax Revenues Non Tax Revenues Grants & Concession Loans Grants and Concessions Loans Non Concessions Loans External Non Concessions Loans Domestics Loans

3. Aid Environment in Tanzania 3 Tanzania ODA overview for Financial Year 2013/14.  Projected Grants and Concessional Loans for FY 2013/14 – 3,855 Tshs Billion (2,315.4 USD) Million Tanzania receives ODA in three forms:  General Budget Support (30%)  Baskets (13%)  Direct Project (57%) More than 40 DPs providing ODA (traditional and emerging donors)

4. 3: BUDGET CYCLE The Government Budget Cycle starts in July ending June of each year as summarized below (fig. 1); a) Development Partners submit MTEF Projections (Aug-Sept) b) Preparation of budget Guidelines starts (Aug-Oct); c) Approval of Budget Guidelines by Cabinet (Nov); d) Issuance of Budget Guidelines to MDAs/RS/LGAs (Nov); e) DP enter actual commitments-AMP-Nov-Dec f) Preparation of budget proposal by MDAs/RS/LGAs and submission to MoF Nov-Jan) g) Scrutinization of Sectoral plans and budget (Feb- March); h) Detailed Scrutiny and approval of plans and budget proposals by Sectoral Parliamentary Standing Committees will be done in April- May). i) Presentation Budget to Parliamentary and approve (June) and; j) Starting implementation of budget (July).

5. NEW BUDGET CYCLE BUDGET EXECUTION (Commencing 1 st July) SCRUTINY OF OF BUDGET PROPOSALS BY MOF (Feb- March) APPROVAL OF BUDGET PROPOSALS BY CABINET AT SECTOR LEVEL (April-May) PARLIAMENTARY SECTORAL STANDING COMMITTEES (May) PRESENTATION OF NATIONAL BUDGET TO PARLIAMENT (June) APPROVAL OF BUDGET BY PARLIAMENT (before 30 th June) APPROVAL OF BUDGET GUIDELINES BY CABINET (Nov) PREPARATION OF BUDGET PROPOSALS BY MDAs/RS/LGAs AND SUBMISSION TO MOF (Nov- Jan) PREPARATION OF BUDGET GUIDELINES (Aug-Oct) ISSUANCE OF BUDGET GUIDELINES TO MDAs/RS/LGAs (Nov) DP MTEF PROJECTIONS (AUG-SEPT) DP ENTER ACTUAL COMMITMENTS- AMP-NOV-DEC

6. Challenges on Budget Cycle and Aid in Budget-Tanzania c. Delay in firming up Development Partners’ support to national budget; d. Some DPs disburse funds late which are not on budget lead implementers to receive funds late;  Development Partners provide funds with condition of counterpart funding;  Aid on Budget (still high volume of ODA provided outside of system and off-budget);  Predictability – particularly outer year but also lack of in-year predictability challenges GoT ability to plan and budget effectively and strategically and  Accountability – lack of aid disbursement information and expenditure information challenges domestic accountability

7. However – good progress 7  MoF has been receiving capacity from Development Partners - by-doing, exposure visits and trainings;  It can be done: Some donors have performed well in terms reporting disbursements to CSOs/NGOs. However, a lot needs to be done.  Disbursement reports are frequently prepared – they serve as a reminder.  A combined ODA report on monthly will be prepared and it will be shared  Agreed with DPG AMP focal points to address bottlenecks every month jointly

8. 8 Thank You