1. Integration of External Finance into the Government Budget and Exchequer System Presentation by the Ministry of Finance, Dar es Salaam

2. October 25, 20052 Planning and budgeting cycle Quarter 1 Quarter 2Quarter 3Quarter 4 JulAugSepOctNovDecJanFebMarAprMayJun BG issued MDAs, Regions, LGAs prepare budget estimates/ MTEFs Budget and MTEF finalisation by MOF in consultation w/ MDAs, Regions, LGAs; data entry in Active Planner Budget / MTEF scrutinisation by MOF Budget Books published; Parliament Budget Session Budget Guidelines (BG) Preparation DPs submit 3-year MTEF projections for all Aid modalities to MOF (EFD) MDAs& Regions Confirm DP projects & basket funds projections To MOF (EFD&BD) DPs provide Tentative GBS Commitment & projections to MOF 3 weeks after GBS Annual Review DPs confirm GBS commit. (disbursement schedule) & projections 6 weeks after GBS AR Report DPs reconfirm Basket fund Commitment & projections to MOF(EFD) MDAs& Regions Reconfirm DP Basket funds commitment & projections to MOF (EFD&BD)

3. October 25, 20053 ODA disbursement & accounting channels 1.GBS Disbursement through Exchequer (DP  GBS account in USD at BOT  Gov. Exchequer account in TShs  MDAs, Regions, LGAs)  automatically captured in IFMS and accounted for = on-budget 2. Basket funds (incl. sector basket funds): a) Disbursement through Exchequer (DP  GBS account in USD at BOT  Gov. Exchequer account in TShs  MDAs, Regions, LGAs)  automatically captured in IFMS and accounted for = on-budget b) Disbursement directly to programme account (bypassing Exchequer)  captured in Exchequer (IFMS) ex post after funds have been used, accounted for through dummy voucher by MDAs & Regions to MOF/BD (  D-funds) = on-budget

4. October 25, 20054 ODA disbursement & accounting channels 3.Direct project funds: a) Disbursement through Exchequer (DP  Gov. Exchequer account in TShs  MDAs, Regions, LGAs)  automatically captured in IFMS and accounted for = on-budget b) Disbursement (cash or in-kind) directly to project account (bypassing Exchequer) If project is in budget books: Captured in Exchequer (IFMS) ex post after funds have been used/in-kind support received and DPs provide accounting details to MDAs/Regions, accounted for through dummy voucher by MDAs/ Regions to MOF (BD)  D-funds = on-budget If project is not in budget books: Not accounted for through dummy voucher by MDAs/ Regions to MOF (BD) = off-budget