This brief examines how the process of decentralization by devolution in Tanzania affects outcomes in terms of local government authorities (LGAs) capacity to deliver financial services to the poor. These outcomes depend on the level of administrative autonomy given to LGAs by the central government, their own capacity to execute, and ability to raise financial resources from the own source revenue category. The underlying study involved a review of literature, reports and other secondary data, along with interviews with central government ministries responsible for key services and administration of LGAs, regional secretariats and LGAs carried out in 2017. It also uses some data from the FinScope Survey carried out in 2016 and other studies on the subject.
Related Articles
24th ARW Synthesizing Report
Tanzania has achieved sustained rates of economic growth for the past ten years and is moving towards middle income status. Maintaining these gains while ensuring that development is inclusive is a core objective of the second National Five-Year Development Plan which places industrialisation as the key pillar of national development strategy.
Non-resource taxation in a resource rich setting
A broader tax base will enhance tax compliance in Tanzania Huge reservoirs of natural gas have been discovered offshore the southern coast of Tanzania. The country might become a large producer of gas, and a potential exporter of liquefied natural gas (LNG) during the next decades.
Targeted Not Blanket Allocation, is key to improving effectiveness of input use through voucher schemes
Agriculture development strategies continue to play an integral role in the economies and livelihoods of the poor in Sub-Saharan Africa (SSA) because of their predominantly agrarian economies and agriculture provides employment to large proportions of the population. Despite their importance to local economies, these strategies have historically been driven by funding from international development agencies. […]
Intergovernmental fiscal relations in Tanzania: Guidelines or directives?
The literature on political economy of decentralization underscores the importance of intergovernmental transfers as a vehicle for achieving national social, economic and political policy goals when administrative and financial powers are devolved to lower levels of government. Decentralization left without considering the capacity of authorities to raise enough resources and address needs will enhance inequity […]