Auftragsänderung 1: 81311381-Consulting services for supporting Public Financial Management Reform in Tanzania

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The Good Financial Governance (GFG) project in Tanzania, funded by Germany, Switzerland, and the EU, spans from May 2024 to July 2027. Building on previous GFG initiatives, it aims to enhance domestic revenue mobilization and public finance management. Achievements from GFG I and II include improved tax collection through collaboration between government offices, enhanced audit methodologies, and integration of revenue systems. Despite progress, challenges persist in revenue generation and financial management, hindering Tanzania's development goals. Tanzania faces challenges in domestic revenue mobilization and public finance management, including issues with revenue collection, expenditure control, transparency, and capacity. Despite efforts, revenue collection remains inadequate due to various factors such as a narrow tax base, unstable tax policies, low compliance, and high administrative costs. Additionally, expenditure control and transparency need improvement, with internal audits not meeting standards and weak follow-up on recommendations. The National Audit Office produces quality reports, but institutional follow-up on their recommendations remains weak. Furthermore, public procurement, while improved, still faces transparency and capacity issues. Zanzibar's public finance system is less developed than the mainland, struggling with accounting, reporting, and budgetary controls, necessitating reforms under PFMRP VI. The project's objective is to increase revenue effectiveness, accountability, and transparency, crucial for sustainable funding of public services and development. Key outputs include strengthening revenue mobilization capacities, improving expenditure control, and enhancing fiscal policy frameworks. Targeting SDG goals, it aims to benefit all Tanzanians, particularly women and marginalized groups, through better financial governance. Key partners include the Ministry of Finance, Tanzania Revenue Authority, and various government departments, alongside civil society. In Zanzibar, it focuses on capacity building within the Ministry of Finance and related agencies. The project emphasizes systemic reforms, organizational support, and individual capacity building, tailored to Mainland Tanzania and Zanzibar's specific needs. Integration with donor dialogues ensures efficient implementation and cost-effectiveness. Overall, the GFG project strives to foster inclusive growth by strengthening financial governance, aligning with Tanzania's broader development plans and international standards for transparency and accountability in public finance.

Source

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