Pre Budget Briefs Launched

After reviewing the Budget Guidelines, Policy Forum's Budget Working Group (BWG) produced four Pre-Budget briefs and launched them to the media and various stakeholders. The briefs present budget information in a simple way and ask key questions such as:

This year’s budget may shift resources away from broad-based social services. The Budget Guidelines highlight “the deliberate decision to direct more resources to few strategic programmes which will provide quick wins that will in turn accelerate economic growth in the short to medium term.” Strategic allocation of scarce resources is important. But will focusing on a few key programs mean less money for social services that benefit the wider population?

Economic growth is clearly presented as the ultimate goal, and the preferred means of achieving poverty reduction. However, there is an enormous silence in the Budget Guidelines about equity. What mechanisms have been adopted to ensure that all Tanzanians benefit from growth, regardless of their gender, class, rural-urban and district location? Are these backed up by relevant policy strategies and resource allocations?

Domestic revenue is expected to increase significantly – from Shs. 2.5 trillion to Shs. 3.0 trillion, contributing 60 percent of total resources. It is unclear exactly how the Government will raise this money. Will it come from higher corporate taxes, stricter regulations on extractive industries like mining, or higher taxes on citizens? Will the head tax be reintroduced?

Local government is likely to see more money in 2007/08 as part of an ongoing trend to decentralize. This guidelines show 19% of total Government spending going to the local level – up from 17% last year and 14% two years ago. Recent audit reports and financial reviews show that local governments face challenges managing their money. How will these challenges be addressed to ensure that resources are reaching the targeted programmes and people?

Key governance and accountability institutions may get less money in 2007/08. The Judiciary, the National Audit Office, the Commission for Human Rights and Good Governance and the Specialised Courts all see considerable reductions from the previous financial year, and even bigger reductions over the past two years, according to the guidelines. Is this consistent with the stated importance of such institutions?

Up to Shs 200 billion may be allocated to establish a Constituency Development Fund (CDF), giving Members of Parliament public money to carry out development projects within their constituencies. The idea behind the CDF is to give MPs and citizens more influence on how public money is spent, and to speed up development. These are certainly good objectives, but Kenya’s experience shows that such a fund can have a number of problems. How will the 2007/08 budget address these and other issues? Will information be presented in a transparent way that allows people to follow up and make sure the Government spends public money according to plan?