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Economic Management and Fiscal Governance

The programme on Economic Management and Fiscal Governance aims to improve mobilisation and management of public funds for better and more equitable social service delivery, transparent and accountable governance, and a more conducive business environment for investment and growth.

The Thematic Programme on Economic Management and Fiscal Governance replaces the Development Contract (General Budget Support). The programme, which is harmonised with the EU Sector Reform Contract, supports the Denmark-Tanzania Country Programme in a crosscutting way by providing Sector Budget Support to the Ministry of Finance and Planning. Furthermore, the thematic programme provides support to three accompanying measures aimed at improving tax mobilization efforts through Tanzania Revenue Authority (TRA); strengthening public financial management (PFM) and supporting evidence based poverty research.

Sector Budget Support to Economic management and Fiscal Governance

Through strategic dialogue with Ministry of Finance and Planning on the achievement of clear, agreed results-targets, and performance-based payments to the national budget, the support, which is harmonised with a similar EU programme, will focus directly on budget credibility, administration and mobilisation of revenues, expenditure management for improved service delivery, and sound domestic accountability.

Support to Tanzania Revenue Authority (TRA)

Denmark supports the modernisation of the tax system by contributing to make the tax administration more efficient and targeting long-term sustainable tax financing of the public sector and ultimately reducing Tanzania's dependency on foreign aid. The support involves Danish core-funding to TRA supplemented by earmarked support and technical assistance to address identified gaps in TRA's strategic plan in areas of ICT security with input from an advisor from the Danish Tax Authority, SKAT.

Support to Public Financial Management (PFM) and Public Expenditure Review (PER)

Denmark continues to support the implementation of the PFM reform programme. By establishing systems of coordination and computerization of processes combined with a sound legal basis for reform, the support aims to address areas of fiscal sustainability and balance in the public economy, reallocation and restructuring for growth and poverty alleviation and improved public sector performance.

Support to Poverty Research for Evidence-Based Policy

Finally, a research collaboration with the Department for Economics at the University of Dar es Salaam supports capacity development and evidence-based research within poverty research and inclusive growth to ensure better and more reliable advice to the political decision makers.

More information

    Council for Development Policy meeting May 2017 (Agenda item 2: Tanzania - Reallocation from general budget support to sector budget support). Read here