“Maintaining economic growth is essential for Tz to achieve a middle income”

This is part of the recommendations of the Country Financial Accountability Annual State Report (CASFAR 2019/20) presented by WAJIBU – Institute of Public Accountability Board Chairman, Yona Killagane, during her address to the International Conference on Transparency and Accountability which has just ended. (ITAC 2021).

ITAC 2021 is an original idea from WAJIBU designed for people to meet and discuss trends in transparency and accountability, sharing of best practices, successes and challenges to promote an interdisciplinary learning environment. The objective is to accelerate the transformation process by promoting the culture of total transparency and accountability in the country and across the African continent.

The theme of this conference (ITAC 2021) is “The transformation towards a culture of total transparency and accountability”.

Killagane said that WAJIBU recently launched its report on CASFAR 2019/20, in which Tanzania achieved an overall C + score equivalent to 50% for the year 2019/20.

“This means that the progress made still needs to be improved. Based on the report, to improve the status of financial responsibility in the country, ”he said.

Among the recommendations emanating from the CASFAR report was support for economic recovery, according to which Killagane said: Steps these countries have taken in the fight against Covid-19. “

Other African countries like South Africa and Botswana recorded negative growth of 6.9% and 12.7% respectively. The growth of the Tanzanian economy in 2019/20 was supported by strong performance in construction, agriculture, mining and quarrying, as well as transport and storage activities.

He also said that maintaining debt sustainability will require keeping debt financing costs low, increasing exports and improving domestic resource mobilization to replace expensive trade debts.

“Therefore, it is recommended that the government benefit from innovative development finance mechanisms such as equity financing of public investments and increased use of public-private partnerships (PPP) to finance the country’s development projects. “

The report, according to Killagane, recommended that by improving the reliability of the budget, expenditure financed externally by loans or grants should be included in the national budget and be reported in the consolidated financial statements, along with the (s) emergency credit (s) and interest on debt.

Second, he said: “Actual spending may deviate from the initially approved budget for reasons unrelated to forecast accuracy – for example, following a major macroeconomic shock such as the COVID-19 pandemic. When this is the case, the reasons should be explicitly established and the extent of the impact assessed. “

On the transparency of public finances; ministries, departments and agencies, regions and local government authorities should reflect the same information at the level of service delivery units.

“Therefore, it is recommended that information on budget performance be included in quarterly and annual reports, linking resource planning in the most appropriate way for better service delivery in order to facilitate and increase transparency of public finances at all levels. “

On improving the management of public investments, the report recommended the need for monitoring of public projects – the monitoring system should keep records on physical and financial progress, and should produce periodic monitoring reports of projects. , especially for large projects.

The CDMT documents and the corresponding annual reports on the progress of major investment projects should be made public. For effective monitoring of public projects, information on major projects should be reported each year separately and presented in a clear report.

Regarding the costing of investment projects: it is recommended to improve the capacity of the country’s PFM system to produce infrastructure results by harmonizing the selection, implementation and monitoring of investment expenditure with formal guidelines and oversight, effective management of public assets, and consolidation and monitoring of procurement operations.

On the adoption of international standards for the management of public assets (PAM) – ISO55000: the main objective of adopting ISO55000 standards is to promote an integrated PAM system that improves value for money, environmental consideration, service delivery, accountability, probity and ethical behavior.

According to Killagane, WAJIBU stresses that Tanzania invests heavily in the acquisition of public assets, which therefore requires a standardized management model. In pursuit of this vision, the government of Tanzania had already adopted the IPSAS-Accrual accounting system in its efforts to strengthen the accounting and reporting practices of public assets in the financial statements of the government accounting system.

Therefore, in fiscal year 2019/20, the government, through MoFP, mandated a situation analysis consultancy of WFP’s current practice in Tanzania to develop an action plan. for the adoption of international standards ISO 55000.

He also said: “It is recommended that the Ministry of Finance and Planning adopt international standards for WFP by becoming ISO55000 certified, which will accelerate alignment with internationally acceptable best practices in public financial accountability.

On improving foreign direct investment in the country; It is recommended that the government intervene to find a solution to the decline in the number of new investments and all relevant authorities supporting the investments on time and that strict measures be taken against the staff who delay the provision of services to support the investment.

It is also recommended that the government amend all laws relating to the investment climate in the country, including the Investment Law of 1997 (as amended in 2015) to ensure that all matters affecting investments are harmonized.

On budget strategy and policy-based budgeting, Killagane said: “This needs to be improved in two areas: the budget strategy; and in the medium term perspective of expenditure budgeting. First, the details of the anticipated tax impacts should be included for the expenditure measures as well as the presentation of the anticipated tax impacts for the next two fiscal years of the revenue or expenditure policy measures.

“Second, as a baseline, the annual budget should present expenditure estimates for the budget year and the next two fiscal years broken down into administrative or economic classification. Third, on medium-term expenditure ceilings, budget ceilings should be issued to ministries before the release of the first budget circular at the start of the annual budget preparation cycle. Above all, it is recommended that the ceilings issued cover the budget year and the following two fiscal years. Government approval must be sought before the publication of the first circular.

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