Tanzania appeals to its partners on quick disbursement of GBS

THE Government has appealed to its development partners to adhere to the quick delivery of the General Budget Support (GBS) fund so as to enable timely arrangement of the smooth facilitation of the basic social and economic development projects for which the fund is intended for. The call by the government was issued early this week during annual review meeting between the government and the development partners who met in a one day forum organized by the Ministry of Finance with a view to deliberate the GBS expenditure of the previous year. Before winding up a summary report of the meeting to journalists, the Minister of Finance, Dr. William Mgimwa said that, some development partners have a tendency of delaying the money an aspect that sometimes results into the failure by the government to make its budget through as planned in most targeted areas such as agriculture, education, Health and Construction. He said the government and its partners agreed to enhance the dialogue for the key focus for dialogue next year which will be based on the sustainable growth, improving quality of social services at local government level and maintain public financial management and transparency. The meeting also heard about the government’s new development agenda which will be strengthening delivery across a number of critical areas such as Energy, Oil and Gas, Transport and Revenue collection services. On the other hand, the development partners have pledged to enhance predictability of the GBS disbursements on the basis of a reinforced dialogue, and there was a consensus that the continuing challenge for both partners is to support sustainable growth which benefits Tanzanian citizens at large leading them to a significant decline in poverty. The current Chairman of the development partners’ group in the country who is also the head of Britain’s Department for International Development (BDID) Marshall Elliott was quoted as saying that, this year’s commitment from the budget support has remained just under half a $ billion which is a significant contribution to the national budget. However, he said that, this is a similar level to last year which is 68 percent of the payment equivalent to $ 337 within the first quarter of this year. GBS annual review meeting is an event of the partnership framework memorandum of understanding which the government signed in 2001 with the development partners who are 12 in number to join help budget support program in the country. Its contribution has brought a significant outlook in the country’s developing economy. The aim of the annual meeting intends to provide an opportunity for the government and the GBS partners to assess the performance in implementing their mutually agreed commitments that are considered essential for Tanzania’s growth and poverty reduction. GBS is an aid delivery modality that provides financial assistance to the country’s national budget. In the case of Tanzania, the funds are provided by Development Partners (DPs) and used by Government to reach the goals of Tanzania’s National Strategy for Growth and Reduction of Poverty (popularly known as MKUKUTA for Tanzania’s Mainland and MKUZA for Zanzibar). It is up to the government to manage the money and it is spent according to the prioritizing made in the national budget, in dialogue with development partners and a unified assessment framework. This means that budget support as an aid modality leaves more of the responsibility with the recipient government than more traditional project assistance. In Tanzania, the GBS is financed by 12development Partners, 9 bilateral and 3 multilateral and these are The African Development Bank, Canada, Denmark, the European Commission, Finland, Germany, Ireland, Japan, Norway, Sweden, Netherlands, Norway, Switzerland, the United Kingdom, and the World Bank.