United Republic of Tanzania - Public Expenditure Review FY02 : Report on Fiscal Developments and Public Expenditure Management Issues
This Public Expenditure Review (PER) examines the overall fiscal discipline, which after targeting, and achieving recurrent surpluses by FY99, the targets for FY01 were set to provide scope for financing of priority sector activities under the Pove...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/2002829/tanzania-public-expenditure-review-fy02-report-fiscal-developments-public-expenditure-management-issues-external-evaluation http://hdl.handle.net/10986/15363 |
| Summary: | This Public Expenditure Review (PER)
examines the overall fiscal discipline, which after
targeting, and achieving recurrent surpluses by FY99, the
targets for FY01 were set to provide scope for financing of
priority sector activities under the Poverty Reduction
Strategy, and accommodate increased foreign inflows in the
form of program grants. However, recurrent deficits in FY01,
and, the target for FY02, delivered a recurrent deficit of
2.5 percent of GDP. Nonetheless, these deficits are within
the sustainability thresholds indicated by recent analyses
of fiscal, and debt sustainability, and remain compatible
with continued macroeconomic stability. The report also
looks at the introduction of cash flow planning, and the
innovation introduced with the public finance act, to then
analyze the government resources, and expenditures, which
overall, expenditures on the key priority areas increased,
exceeding the additional debt relief available through the
enhanced Heavily Indebted Poor Countries (HIPC) Initiative.
The report subsequently focuses on two main sources of
fiscal risks, namely, on public enterprise debts and
retrenchment costs associated with privatization; and, on
extra-budgetary commitments related to procurement.
Containment of fiscal risks, and further work should be
extended to quantify, and validate parastatal debts covering
other resources of fiscal risks, including commitments to
privatization. Recommendations include a review of the
existing tracking systems to identify information gaps, and
recommend how systems can be streamlined, how information
flows can be improved, and to clarify roles, and
responsibilities of key institutions in this process.
Moreover, attention should be paid to both financial
reporting, and service delivery, including ways of
integrating the two, in addition to identifying links to the
poverty monitoring process. |
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