Good financial governance

Programme description

Title: Good financial governance programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Tanzania
Lead executing agency: Ministry of Finance and Planning
Overall term: 2016 to 2020

Context

In recent years, Tanzania’s public finance system has undergone generally positive, albeit gradual development. Analyses show the pace of reform to be slow. The ambitious objectives that have been drawn up are at variance with the capacity of principal stakeholders to actually carry out public finance reforms.

A systemic change in the way public finances are structured is the declared goal of the Tanzanian Government. In order to achieve this, the state needs to provide greater accountability, but citizens too must demand it. Both of these actions need to be carried out more frequently and to a higher degree of quality. Weaknesses in external and internal financial control, a failure to implement audit recommendations, a tax base which is too narrow and a lack of mechanisms allowing taxpayers and decision-makers to enter into dialogue with one another are the main reasons for the absence of accountability in the public finance system.

Objective

The public finance system is strengthened in line with the principles of good financial governance, in particular transparency, efficiency and accountability.

Approach

The programme supports the Tanzanian Government’s programme of public finance reform by enhancing the level of accountability provided by the government in the area of public finances and by increasing the demand among the country’s citizens for accountability. The focus is on four fields of activity:

  1. Strengthening external financial control

    The programme strengthens in particular the individual and institutional capacity of the National Audit Office of Tanzania to plan and carry out extended audits of accounts as well as audits in specialised fields, including the drafting of audit recommendations.

  2. Strengthening the internal audit system

    Thanks to process-based advice and dialogue with public administrations, a shared understanding of the role of internal auditor in ministries, subordinate authorities and local authorities can be developed. Substantial support is provided to the Internal Auditor General’s Division at the Ministry of Finance in the form of organisational and sectoral advice.

  3. Supporting the system of local public revenue

    To increase local revenue levels, ten selected local authorities are given advice on how to manage the income they receive in an efficient and transparent manner. Providing on-the-job training and coaching sessions for local experts and managers helps to improve taxpayer registration and tax collection procedures.

  4. Strengthening social accountability

    The programme promotes the reviewing and processing of easily comprehensible information provided by the government on accountability. Civil society partners are given support and assistance in using accessible data to compile reports and analyses.

In conceptual terms, the programme builds on the previous experience and successes of two completed programmes, namely Support to the National Audit Office of Tanzania (2012-2015) and Support for Decentralised Structures (2008-2014). Combined financing comes from the European Union and the Swiss Agency for Development and Cooperation (SDC), two organisations with which the programme works together in partnership.