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Poverty reduction strategy in Africa
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7. Prioritization of Government actions
Priority for Government action on public expenditure is based on the guidelines set out in the Medium Term Expenditure (MTEF) and the Public Expenditure Review (PER) exercises. These two exercises put a lot of resources to the priority sectors. They also provide for more civil service reform and improvements in the public sector so that it becomes more accountable for serving the needs of the poor.
The five year expenditure on the priority sectors indicates that education sector was spending 162 Tshs. Billion in 1990/00 but it will be spending up to 487 Tshs. Billion in 2003/04. Basic education in particular will rise from 97 to 224; health sector from 57 to 225; primary health from 29 to 111; water from 8 to 54; agriculture from 14 to 30 in 2001/02; agricultural research & extension from 5 to 8 in 2001/02; roads from 51 to 287 in 2003/04; rural roads from 16 to 76 in 2003/04; legal system from 8 in 2000/01 to 81 billion in 2003/04; while HIV/AIDs will be up from 0 to 9.0 billion in 2003/04.
Key features of this process so far are that:
- For the basic education, health and water sectors the costs for 2001/02 are covered by the budget.
- For agriculture the costs of programmes aimed at meeting the PRSP targets are still being worked out.
During 2000/01 the main actions for poverty reduction were:
- To increase support for, and strengthen the growth prospects of the priority and pro-poor sectors.
- To work out strategies and costings for developments in the key sectors.
- To develop an effective system for monitoring poverty.
The principal interventions were as follows:
- To increase support for the priority and pro-poor sectors.
- The macroeconomic situation was kept healthy by using good monetary and fiscal policies.
- Revenue and expenditure patterns were set out as suggested in MTEF and PER.
- An enabling environment for private investment was created.
- The Tanzania National Business Council was launched for regular consultation between the Government and representatives of the private sector.
- The efficiency of the financial and goods markets was improved.
- The development of the rural sector was supported.
- The performance of utilities was improved.
- Nearly all of the conditions for Highly Indebted Poor Countries (HIPC) completion point were met.
- The cash budget was managed with increased flexibility.
- The Public Finance Act and the Public Procurement Act were passed.
- The Integrated Financial Management System (IFMS) was rolled out along with other measures to strengthen budgetary control and accountability.
To work out strategies and costings for developments in the key sectors:
- Strategies for various sectoral, sub-sectoral and cross cutting programmes were developed and costed.
- The budget for education, health and other priority areas was increased and used more effectively.
- An Education Fund to support children from very poor families was established.
- Primary school fees and other enrolment related contributions were abolished.
- An action plan for the elimination of child labour was prepared.
- The Tanzania Commission on AIDs (TACAIDs) was established.
- A good governance coordination unit was established.
- The Office of the Prevention of Corruption Bureau was extended to the districts.
To develop a wide ranging system for monitoring poverty:
- A Household Budget Survey (HBS) and an Integrated Labour Force Survey (ILFS) were conducted to give better information about the extent of poverty in Tanzania.
- Income and social indicators of poverty were tracked and measures (TASAF) were adopted to reduce rural income poverty and provide relief to vulnerable groups.
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