Strategic Plan

THE UNITED REPUBLIC OF TANZANIA
Ministry of Finance
Medium Term Strategic Plan 2004 - 2009
May 2004
Table of Contents
LIST OF ABBREVIATIONS ................................................................................................II ACKNOWLEDGEMENTS ................................................................................................. IV EXECUTIVE SUMMARY .................................................................................................... V 1.0 1.1 2.0 2.1 2.2 2.3 2.4 2.5 2.6 3.0 3.1 3.2 3.3 4.0 INTRODUCTION........................................................................................................1 METHODOLOGY ..........................................................................................................1 SITUATION ANALYSIS............................................................................................4 RECENT HISTORY........................................................................................................4 MANDATE OF THE MINISTRY ....................................................................................15 RECENT INITIATIVES AND ACHIEVEMENTS ...............................................................15 STAKEHOLDER ANALYSIS .........................................................................................23 ENVIRONMENTAL SCAN ............................................................................................25 CRITICAL ISSUES .......................................................................................................39 VISION, MISSION AND VALUES .........................................................................39 VISION ......................................................................................................................39 MISSION ....................................................................................................................39 VALUES ....................................................................................................................40 THE PLAN .................................................................................................................41
APPENDICES ........................................................................................................................62
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Ministry of Finance: Medium Term Strategic Plan: 2004 - 2009
LIST OF ABBREVIATIONS
ACGEN AIDS ATC CAG CB CMT COMESA CPS CSRP CTB CUTS DAP DAWASA DCS DLS DSA DSV EAC EFQM EIU ES-CTB EWURA FDI GDP GFS HBS HIPC HIV HRD IECU IFM IFMS ILFS JFC LAN LART LGAs MIS MOF MTEF MTSP NDS NGOs NHIF NIC NMB PER Accountant General Acquired Immunity Diseases Syndromes Air Tanzania Cooperation Controller and Auditor General Commissioner of Budget Change Management Team Common Market for Eastern and Southern Africa Central Payment System Civil Service Reform Programme Central Tender Board Consumer Unity and Trust Society Director of Administration and Personnel Dar es Salaam Water and Sanitation Authority Director of Computer Services Director of Legal Services Dar es Salaam School of Accountancy Director of Stock Verification East African Community European Foundation for Quality Management Economist Intelligence Unit Executive Secretary Central Tender Board Energy and Water Utilities Regulatory Authority Foreign Direct Investment Gross Domestic Product Government Financial Statistics Household Budget Survey Highly Indebted Poor Countries Human Immuno-deficiency Virus Human Resource Development Information, Education and Communication Unit Institute of Finance Management Integrated Financial Management System Integrated Labour Force Survey Joint Finance Commission Local Area Network Loans and Advances Realisation Trust Local Government Authorities Management Information System Ministry of Finance Medium Term Expenditure Framework Medium Term Strategic Plan National Debt Strategy Non-Governmental Organisations National Health Insurance Fund National Insurance Company National Microfinance Bank Public Expenditure Review
ii
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PFA PPA PSP PSPF PSRC RAS SACU SADC SDS SME SUMATRA TANESCO TAS TCRA THA TIA TNA TR TRA TRC UNCTAD URT VAT
Public Finance Act Public Procurement Act Private Sector Participation Public Service Pension Fund Presidential Parastatal Sector Reform Commission Regional Administrative Secretary South African Customs Union Southern Africa Development Community Service Delivery Survey Small and Medium Scale Enterprises Surface and Marine Transport Regulatory Authority Tanzania Electric Supply Company Limited Tanzania Assistance Strategy Tanzania Communications Regulatory Authority Tanzania Harbours Authority Tanzania Institute of Accountancy Training Needs Assessment Treasury Registrar Tanzania Revenue Authority Tanzania Railways Cooperation United Nations Conference on Trade and Development United Republic of Tanzania Value Added Tax
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iii
ACKNOWLEDGEMENTS
The preparation of this Plan has been made possible by the excellent co-operation, commitment and seriousness of the Heads of Departments and their Assistants and the Heads of Units in the Ministry of Finance. Credit also goes to the Consultants, Mr. John Ulanga and Mr. Peter Mukurasi from Economic and Social Research Foundation and Cowater International, respectively, for guiding and overseeing the process through and for the invaluable comments which greatly improved and made the report what it is. Gratitude also goes to the Ministerial Strategic Planning Support Team whom in addition to participating the whole process of developing the Strategic Plan also helped in the writing of this document. Lastly, I extend my thanks and appreciation to all members of the Ministry, who in one way or another contributed to the success of this work.
G.S. Mgonja PERMANENT SECRETARY
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iv
EXECUTIVE SUMMARY
The Ministry of Finance is entrusted with the following main functions: Formulation of policy issues related to macroeconomic analysis, fiscal, monetary and debt policy and strategy. Overseeing financial aspects of the Government interest as shareholder in public, as well as private enterprises; and advises the Government on various issues pertaining to its investments. Preparation of expenditure targets, review of expenditure performance, and preparation of budget guidelines. Preparation and implementing external aid policies, mobilization and coordination of external aid and regional cooperation. Managing the Government payroll. Overseeing all revenue and expenditure operations of the Government.
This Medium Term Strategic Plan (MTSP) provides a framework for improved service delivery in the Ministry of Finance by introducing performance based management systems in the Ministry. This is an integral part of the Public Service Reform Programme. As part of the Reform Programme, the Ministry launched its first Client Service Charter in November 2002. In addition, the Ministry undertook a Service Delivery Survey and Self Assessment Exercise in February and October 2003, respectively. These two exercises provided useful inputs in the preparation of this Strategic Plan. The Medium Term Expenditure Framework (MTEF) for the Ministry of Finance provides yet another opportunity to translate Government policies, aspirations and perspectives into meaningful actions. These actions contribute to the betterment of the peoples lives and towards achieving national goals and objectives particularly that of poverty reduction. The Ministry will, therefore, make deliberate efforts to link the MTSP and MTEF to be able to obtain best results. The major pillar of this strategic plan is as the articulation of the Ministrys Vision, Mission and Values. The Vision of the Ministry of Finance is stipulated in the following statement: High economic growth and macro-economic stability, sound financial management and accountability achieved and sustained. The Mission of the Ministry is stated as: The mission of the Ministry of Finance is to achieve and maintain high economic growth, macro-economic stability, sound financial management through development of robust fiscal and monetary policies and enhancing professionalism and promote the use of Information Technology (IT) The following were agreed to be the Core Values of the Ministry: ______________________________________________________________________
Innovativeness Professionalism Customer focused Commitment to work Efficiency Participatory management Teamwork Timely service delivery Integrity
The rationale for the strategic plan is to enable the Ministry to perform its functions effectively and efficiently. For this, the plan defines Seven Key Results Areas that address the following issues: - Stable macro-economic growth and development - Financial management and accountability - Resource mobilisation, allocation and utilization - Efficiency and effectiveness of information systems - To improve social security benefits and pension administration - Maintain and develop sustainable human resource capacity to ensure quality service delivery to the public - Effective consultations and communication with MoF stakeholders To realise the outcomes of these areas, the strategic plan includes strategic objectives and strategies for their achievement. To ensure accountability, service delivery targets have been developed. All the components that constitute the strategic plan are summarized in the matrix at Appendix 1. From the strategic plan, the Ministry will progress to the stage of operational planning. This involves line managers and support units in the development of costed Annual Operating Plans with output objectives directly derived from the strategic objectives of the strategic plan. It is hoped that the Strategic Plan will enable Ministry of Finance to organize itself to improve quality, efficiency, effectiveness and performance of services on a continuous basis and sustain these gains on a longer term.
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1.0
INTRODUCTION
The Ministry of Finance is a Central Ministry responsible for mobilizing and allocating financial resources, formulating and implementing fiscal and monetary policies, controlling and accounting of public finances. Additionally, it is also the custodian of government assets and responsible for service public debt. Currently, the MoF is using the Medium Term Expenditure Framework (MTEF) as the major planning base to carry out its roles and functions. However, MTEF is limited, as it does not provide room for comprehensive analysis of all the various pertinent issues related to MOF mandate. As part of Public Service Reforms, the Ministry therefore has adopted the use of a strategic plan as a comprehensive tool to be used to assist the Ministry to effectively and efficiently carry out its mandate and therefore improve its performance. This document sets out the Strategic Plan for the Ministry of Finance for the period 2004/5-2009/10.
1.1
Methodology
Preparation of this Medium Term Strategic Plan was done in a participatory approach involving the Senior Management of the Ministry. The main approach for the preparation of this Medium Term Strategic Plan was the review and updating of the previous strategic plan of the Ministry by critically re-evaluating the situation and based on the re-evaluation, agreeing on changes to be made and as a result this revised MTSP was prepared. Throughout this process, facilitation and technical backstopping was provided by a Team of Consultants from a Consortium consisting of Cowater International (Canada), Economic and Social Research Foundation (Tanzania) and International Development Management Advisory Group (Canada). The session to review and update the Strategic Plan was preceded by two main activities that provided useful inputs into the process. These were the undertaking of the Service Delivery Survey and conducting Self Assessment Exercise for the Ministry. 1.1.1 Service Delivery Survey
A service delivery survey was undertaken during the months of February and March 2003 in 38 districts of 12 regions of the country. The main objectives of the survey were to provide information that will be used to update the Strategic Plan and the Client Service Charter, and to provide baseline data that will be used for future performance improvements. A questionnaire was designed with questions relevant to the three issues identified, surveyors were trained, the questionnaire was pre-tested and the actual field work was undertaken in a span of 21 days. Data gathered was entered and analyzed using SPSS (a statistical package) and a report was prepared and the key findings were used as one of the basis for the preparation of this strategic plan.
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1.1.2
Self Assessment
A two-day self-assessment working session was held whereby all the Top Management of the Ministry were involved. To support the self-assessment process, training sessions, workshops and working sessions were held with Ministry personnel between March and October 2003. For the self-assessment process to be undertaken successfully and for it to have a real and long-term impact on the Ministry, training was critical. MCM nominated self-assessment trainees, largely drawn from the Change Management Team (CMT), received a two-day intensive in-class training program, at ESRF, Dar-es-Salaam (21-22 March 2003), addressing all aspects of the European Foundation for Quality Managements (EFQM) Business Excellence Model self-assessment process. This was followed by a further two-day on-thejob training during which the trainees worked with the consulting team to facilitate the Ministry self-assessment session. The aim of the training was to provide the Ministry with An understanding of the self-assessment process. A core competency to assist other leaders within the Ministry to undertake selfassessments in the future. Knowledge to use the Excellence Model as a diagnostic tool that provides invaluable information about the Ministrys development and performance. With the experience of having carried out the self-assessment, and having reviewed the results, the nominated Ministry trainees who will, in the future, have the capacity to lead similar self-assessment exercises at the Ministry level or at any level within the organization. Two-day self-assessment workshop was targeted at Ministry senior management (i.e., PS, Heads of Departments and their Assistants). The self-assessment workshop was held at the Golden Tulip Hotel, Dar-es-Salaam (October 2003). The participants were initially provided with the background information and basic knowledge of EFQM Business Excellence Model self-assessment process. The topics covered during the introductory session included: Background, concept and history of the Excellence Model; The role of self-assessment and benchmarking as a part of the performance management system currently being implemented in their Ministry; The concept of excellence, and the practical experience from business and government that lay behind the Excellence Models enabler and results criteria; The experience of using the self-assessment process in Tanzania and other countries; How to undertake the self-assessment; The analysis and use of self-assessment session outputs. Consortium consultants and MoF nominated self-assessment trainees together facilitated the self-assessment session. Participants were divided into five small working groups of four to six staff members. Each group was assigned Excellence Model criteria drawn from all nine criteria, in order to improve the quality of the sample.
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The formal Excellence Model scoring and score calculation processes were applied rigorously to achieve the statistically high quality results. Following the two-day assessment process, Consortium consultants coded and entered the data into the EFQM data analysis software. The scores for each criterion and sub-criterion of the Excellence Model were consolidated to derive the Ministry performance baseline score. This is the score the Ministry will use as the benchmark when undertaking subsequent self-assessments to gauge performance improvements. The self-assessment exercise provided: A benchmark that will be used as a reference for future self-assessments, The list of vital few areas of improvement critically important to the Ministry, and Systematically extracted information that will contribute to the Ministrys planning process. The self-assessment exercise also proved to be an excellent way for managers to exchange ideas concerning MOF management, and to build capacity around best practice approaches to the organization. A subsequent working session was thereafter during which the CMT, self-assessment trainees and the consulting team reviewed the outcomes and validated the scores produced during the two-day assessment workshop. The self-assessment process identified a detailed list of organizational areas for improvement for each criteria and sub-criteria, requiring varying degrees of attention by the Ministry. Working session participants applied a formal prioritisation process using an impact matrix to identify the vital few areas for improvement that require the immediate attention of Ministry management. Participants, in reviewing the vital few areas, then developed a list of actions that were felt necessary to address the vital few areas, and that should be included in the Ministrys planning processes. A separate Self Assessment Report has been prepared and the key findings have been used as one of the basis for the preparation of this Strategic Plan. 1.1.3 Strategic Planning Session
Following those two activities, an intensive three day strategic planning session was held at ESRF Conference Hall in November/December 2003 and a two-day session was held in March 2004 whereby all the senior officers of the Ministry participated in the sessions. The sessions were organised in a participatory manner whereby small groups were used to provide basis for discussions in the plenary session. The session was initiated by a presentation of the process that was to be followed during the review of the Strategic Plan. Thereafter, participants were divided into groups to develop the Vision, Mission, Values which were then discussed and agreed in plenary. The groups thereafter undertook situation analysis of the Ministry, identified the critical issues, which were again discussed and agreed in the plenary. The same approach was used to revise the Key Results Areas, Strategic Objectives, and Strategies etc and then undertake the Force Field Analysis.
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2.0 2.1
2.1.1
SITUATION ANALYSIS Recent History

Recent Economic Trends and Performance
The Tanzanian economy performed relatively well during 2002 as it recorded a substantially higher real Gross Domestic Product (GDP) growth rate of 6.2 percent, which was above the growth rates of 4.9 percent and 5.7 percent attained during 2000 and 2001 respectively. This growth exceeded the target rate of 5.9 percent that was set for the year 2002. The average economic growth rate of 5.6 percent per annum attained in the last three years when compared with previous growth rates and an average of 3.4 percent achieved by African countries, is encouraging. However, this growth is still too low to the needs of the population growing at 2.9 percent per annum, and to have a significant impact on our problems of poverty and unemployment. However, real GDP growth was 5.2 percent in 2003 slightly lower than the level attained during 2002, mainly due to unsatisfactory performance of the agricultural sector, arising from inadequate rains in most parts of the country that adversely affected agricultural production. The rate of inflation remained more or less the same at 4.6 percent in October 2003, which is only 0.1 percent higher than October 2002. The decline in the inflation rate from 30 percent in 1995 to 4.3 percent has been of great benefit. The economy has stabilized, which, among other things, is a prerequisite for its growth and sustainability, attract investments and bring improvements in the monetary sector. This decline in inflation is attributed to improvement in food availability and distribution, coupled with deliberate policies to control expenditure as well as money supply in the country. The value of Tanzanian shilling to the dollar depreciated by 7.6 percent from TSh. 888.9 to the dollar at the end of June 2001 up to TSh. 956.8 to the dollar at the end of June 2002. The shilling continued to fall, reaching TSh. 1061.7 to a dollar at the end of December 2003 and TSh 1,120 to the dollar early February 2004. The depreciation of the shilling was triggered by low export sales, which was caused by the fall in the prices of traditional exports on the world market. Increased exports earnings are the main way of strengthening the value of the shilling. Table 1: Trends in Selected Macroeconomic Indicators
1995 3.6 27.1 574.8 682.9 1996 4.2 21.0 580.0 763.8 1997 3.3 16.1 612.1 752.6 1998 4.0 12.9 664.7 588.5 1999 4.7 7.8 744.8 543.3 2000 4.9 6.0 808.4 663.3 2001 5.7 5.2 876.4 776.4 2002 6.2 4.5 2003 5.2 4.6
Indicator Real GDP Growth- (%) Inflation-Annual Average- % Exchange Rate (TSh/USD)-Annual Average Merchandise Exports (Mill. US. $) Merchandise Imports (Mill. US$) Export/Import Ratio (%)
978.9 1045.7 902.5 1073.8
1340.5 1212.6 1148.0 1382.2 1497.9 1366.3 1560.5 1511.3 1873.9 50.9 63.0 65.6 42.6 39.7 49.6 52.0 59.7 57.3
Investment/GDP Ratio 19.7 16.5 14.7 16.0 15.4 17.5 17.2 18.2 (%) Foreign Reserves (Month 1.6 2.4 3.8 3.1 4.2 5.7 6.2 6.4 ______________________________________________________________________
8.5 4
Indicator of Imports) Fiscal Balance (before Grants)-(% of GDPmp) Average Deposit Rate-%
1995
1996
1997
1998
1999
2000
2001
2002
2003
1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
0.1 12.0
-1.7 11.0
-2.3 10.0
-2.3 7.9
-5.8 7.1
-4.6 4.2
-6.6 3.5
-2.6 3.1
-9.9
Average Lending Rate-% 28.0 26.5 24.0 24.5 22.1 19.6 16.4 15. 7 Source: Presidents Office, Planning and Privatisation, 2003 and Bank of Tanzania, monthly economic review, December2003/January 2004.
2.1.2
Macroeconomic Stability
MoF has made progress over the last decade in creating economic stability. It has brought the budget deficit and inflation under control and instituted structural reforms to boost economic growth and reduce poverty. Reforms to liberalise the economy have included: Freeing prices from Government control. A major privatisation programme. Encouraging foreign investment. As a result there has been a marked increase in inward investment as private investors and international lending agencies and donors have responded positively to the reforms. In 2003, Tanzania Investment Centre registered 372 projects US$1,589.87m, out of which 155 are owned by local investors, 109 by foreign investors, and 108 are Joint Venture projects. Furthermore, in 2002 a number of investors who were facilitated by the Centre on various permits, licenses and registrations were 260 on TRA issues, 243 on company registration, 214 on business licenses, 926 on work permits, 976 on resident permits and 61 on land issues. The level of investment has been increased from 14.8 percent of GDP in 1997 to 17.4 percent in 2003. However, this level of investment is still below the required level to accelerate rapid economic growth. The ideal investment as a percentage of GDP to spur growth for Tanzania should not be less than 10 percent. The Ministry, in collaboration with other Ministries, continues with its efforts of creating enabling environment and putting in place attractive incentive package and procedures that would attract investors and facilitate their access to credit.
2.1.3
Foreign Direct Investment
Net FDI inflows into Tanzania have shown a steady increase from 1991. There was a significant response from foreign investors from the second half of 1990s. The highest level of FDI inflow occurred between 1994 and 1995, where the annual level of net FDI inflows more than doubled from US$50m to US$119m in 1995. It has since been increasing steadily
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and stood at US$ 463.4m in 2000 (see Fig. 1.1). During 1995-2000, Tanzania received a total of US$1bn, compared to less than US$2m during 1986-1981 (UNCTAD 2001). While FDI inflows hovered close to 0 percent of GDP in 1980s, it increased to 2.1 percent in 1998 and averaged 1.3 percent from 1990-1998. By 1999, inward stock of FDI had reached 11.2 percent of GDP, up from 7.0 percent in 1995, and lower still at 2.2 percent in 1990 (UNCTAD 2001, CUTS, 2003). On the other hand during 2002, the level of foreign direct investment declined to US $ 240.4 million from US $ 327.4 million recorded in 2001. The high levels of foreign direct investment attained during the period 1999-2001 were on account of substantial investments in the mining sector. Table 2 shows the growth of FDI flows in the country from 1997 to 2002 (Economic Survey, 2002). Table 2: Growth of Foreign Direct Investment Flows (FDI) in the Country, 19972002
YEAR VALUE OF INVESTMENTS (US $ MILLION) 157.8 172.2 516.7 463.4 327.4 240.4
1997 1998 1999 2000 2001 2002 Source: The Economic Survey, 2002 Note: The value of investments for the period 1999-2002 has been revised following the results of a joint study conducted by the Bank of Tanzania, National Bureau of Statistics and the Tanzania Investment Centre.
Table 3:
GDP US$ Mill
Major Economic Indicators

1997 6,995 3.5 16.0 31.3 752.6 1,148 -403.4 623.1 7,578.5 1998 7,711 4.0 12.8 32.1 588.5 1,382 -905.4 599.2 7,384.7 1999 8,025 4.7 7.9 32.9 543.3 1,415 -829.5 775.5 2000 8,377 4.9b 5.9 33.8 663.3 2001 5.7 5.1 34.7 2002 6.2 4.6 33.6 2003 9,300 5.2 4.6 34.5 1,874 -476 8,711 8,927
Real GDP growth (%) Consumer Price Inflation (ave %) Population (m) Export of goods fob US$m Import of goods fob US$m Current account balance US$m Forex reserves excluding gold (US$m Total external debt Mill USD
776.4 902.5 1,073.8
1,368 1,560.3 1,511 -498.6 974.2 -480.0 -251
1,157 1,529 1,922.4 7648.2
13.2 21.0 7.7 Debt-service ratio (1) % Exchange rate (average) 612.1 664.7 744.8 800.4 876.4 966.6 1,046 TSh/US$ Source: Bank of Tanzania (Monthly Economic Review, December 2003/January 2004) and EIU estimates
7,669. 7,624.8 7,464.0 7,268 7 16.2 16.2 12.8 7.7
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2.1.4
Prospects
The rate of growth in GDP has risen steadily from 3.5% in 1997 to an estimated 5.2% in 2003. We project the real GDP to grow at 6.3 percent in 2004 and up to 7.0 percent by 2006. Forecast also indicates that the consumer price inflation will be maintained at 4 percent during 2004/05 to 2006/07. Successful reform programme has laid the basis for a sustained increase in growth and investment. This should enable Tanzania to outperform neighbouring countries and become an increasingly attractive location for international business in the region. 2.1.5 Structure of the Economy
Agriculture represents about half of total GDP and manufacturing industry about 8.4%. Growth in most sectors has been in line with that of GDP as a whole, with the notable exception of the buoyant mining sector. Manufacturing has recovered in recent years, helped by the improved performance of the privatised industries. In 2003 Tanzania had a total GDP of about TSh 9,725.01 billion, equivalent to US$ 9.3billion. This is equivalent to an income per person of US$ 265 on a direct-conversion basis and about US$ 1,000 on a PPP basis. The main components of GDP are shown in the following table: Table 4: Tanzania: GDP Origins and Components 2002
% Of total 47.5 2.7 8.4 5.0 36.4 Components of GDP 2002 Private consumption Government consumption Gross fixed capital formation Increase in stocks Exports of goods and non-factor services Imports of goods and non-factor services % Of total 70.9 16.9 19.0 0.2 22.8 -29.8 100
Origins of GDP 2002 Agriculture Mining Manufacturing Construction Services
GDP at factor cost including others Source: Economic Survey, 2002
100 GDP at market prices.
Agriculture Agriculture has four main sub-sectors: crops, livestock, forestry and fisheries. Crops are the most important, representing about 75% of total agricultural output. Smallholders produce the bulk of subsistence crops (principally maize, wheat, cassava and rice) using traditional methods, but yields are low and vulnerable to drought. Smallholders are also the principal growers of the major cash crops (coffee, cotton, cashew nuts and tobacco) while sisal, the main pre-independence export crop, and tea are predominantly grown on large estates. Production of all crops fluctuates depending on climatic conditions, but cashew nut production has increased substantially in recent years. Sisal production, which fell dramatically in the three decades to 1997, has fluctuated since then. It is now increasing, spurred no doubt by a substantial increase in price. Livestock production is predominantly
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shorthorn cattle, with around 400,000 head in commercially managed beef and dairy herds. There is an important fishing industry on Lake Victoria, which exports chilled or frozen Nile perch. Manufacturing The industrial sector in Tanzania includes industries manufacturing import substitutes, such as cement and clothing, together with those processing agricultural products for local consumption and exports such as sugar, beer and cigarettes. Output in some sub-sectors has increased as parastatals have been privatised and new management and new investment brought in. But, in general, growth has been slow as a result of insufficient capital and increasing competition as trade is liberalised .The sugar and cigarette industries have maintained steady production in recent years, and the flour and beer industries (the latter clearly showing the impact of privatisation in 1995 have sustained considerable growth. Mining now represents over 20% of exports and has been the fastest growing sector of the economy in recent years. Tanzania has been removing barriers to foreign ownership, and this has led to substantial foreign direct investment in mining. Services Tanzania has great potential for increasing its income and foreign exchange earnings from tourism. Unique attractions include Africas highest mountain (Mt. Kilimanjaro) and largest game reserve (the Selous) and the worlds greatest concentration of wildlife (the Serengeti plains) as well as the increasingly popular destination of Zanzibar. Tourism in Tanzania plays a vital role in the countrys economic development. It is one of the major sources of foreign exchange. The industry is also credited for being one that offers employment opportunities either directly or indirectly through its multiplier effect. The sector directly accounts for about 16% of the GDP and nearly 25% of total export earnings. It directly supports the estimated 156,500 jobs (2001). Foreign exchange receipts from tourism grew from US$ 258.14 million in 1995 to $730.00 in 2002. These receipts were generated by tourists arrivals in the stated years, which have shown a steady growth from 293,834 in 1995 to 575,000 in 2002. With an average growth rate of 20%, Tanzania expects to reach the target of one million tourists by the year 2010. The sector also plays a major role in enhancement of national and international peace and understanding. Table 5:
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Number of Tourists and Foreign Exchange Earnings: 1990 - 2002

Number of Tourists 153000 186800 201744 230166 261595 293834 326192 360000 482331 628188 501668 525122 % Change 22.1 8.0 14.1 13.7 12.3 11.0 10.4 34.0 30.2 -20.1 4.7 Foreign exchange earnings (US $ mil.) 65.00 94.73 120.04 146.84 192.10 258.14 322.00 392.41 570.00 733.30 739.10 725.00 % Change 45.7 26.7 22.3 30.8 34.4 24.7 21.9 45.3 28.6 0.8 -1.9
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2002 575000 Source: Economic Survey, 2002
9.5
730.00
0.7
2.1.6
External Trade
Export of goods for the year 2002 increased by 16.25 percent to USD 902.55 million compared to USD 776.40 million recorded in year 2001.The good performance of exports was mainly explained by large exports of nontraditional goods, especially minerals, fish and fish products as well as manufactured goods, which contributed 77.16 percent to total exports of goods as compared to 70.1 percent in 2001. In general, the value of traditional goods export (coffee, cotton, sisal, cashew nuts and clove) continued to deteriorate in 2002, causing the contribution of traditional exports to decline to 22.8 percent compared to 29.9 percent of total exports in 2001. As regards imports, the value of imported goods declined from USD 1,560.5 million in 2001 to USD 1,511.3 million in 2002. The decrease was attributed to low imports of capital goods, especially for the mining sector, and low food imports. Table 6: Value of Traditional and Non- Traditional Exports: 1999-2002
Exports Traditional Exports Coffee Cotton Sisal Tea Tobacco Cashew nuts Cloves Sub Total(Total Trad. Exports) Minerals Manufactured Goods Fish and Fish Products Horticultural Products Other Exports Sub Total (Non-Trad. Exports) 76.63 28.46 7.26 24.65 43.44 100.89 19.86 301.19 73.26 30.05 56.75 8.88 72.74 241.68 83.7 38 5.6 32.7 38.4 84.4 10 292.8 178.2 43.4 76.3 9.7 62.9 370.5 57.05 33.7 6.68 29.03 35.69 56.58 12.32 231.05 302.23 56.17 96.77 11.01 79.34 545.52 776.57 35.14 28.15 6.65 29.35 50.5 46.26 5.4 201.45 372.78 67.1 116.76 10.86 108.09 675.59 877.04 -38.4 -16.5 -0.4 1.1 41.5 -18.2 -56.2 -12.8 23.3 19.5 20.7 -1.4 36.2 23.8 12.9 1999 2000 2001 2002 Change (%) 2001/2002
Grand Total 542.87 663.3 Source: Presidents Office, Planning and Privatisation, 2003
The principal destinations of Tanzanias exports in 2002 were India (15.3%), Japan (12.4%) and Netherlands (9.2%). The largest shares of imports came from South Africa (12.7%), China (7.9%) and Kenya (6.6) Import share from the European Union including Norway and Switzerland was 23.6%
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Exports Agricultural products form the major part of Tanzanias exports, but mineral exports are rapidly increasing. In 2002, cotton and coffee typically represented around 32% of exports, with tea and tobacco together contributing a further 40%. In recent years, exports of cashew nuts have increased substantially; they now represented about 23% of total exports in 2002. Mineral exports have grown strongly, underpinned by the increase in gold production. Manufacturing exports grew by 17.3% from US$ 56.2m in 2001 to some US$ 65.9m in 2002. Regional Economic Links Major regional groupings of relevance to Tanzania are the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the Southern African Custom Union (SACU). Of these groupings, the EAC and SADC are most important for Tanzania. The EAC covers Tanzania, Kenya and Uganda and aims to return the three countries to the levels of economic cooperation they previously enjoyed. One aspect of this is to create a customs union to serve the three economies, which have a total population of over 80m and a combined GDP of some US$20 billion. SADC has 14 member states in Central and Southern Africa with a total population of some 199m and a combined GDP of US$ 176 billion. SADC also covers many areas of cooperation. Prominent among these is a plan to introduce free trade throughout the region by 2007, with some exceptions for specially disadvantaged states until 2012. 2.1.7 Public Finance
As part of its reform programme, Tanzania has adopted a rigorous system of cash budgeting. Thanks to the substantial inflows of technical assistance Tanzania has had in recent years, fiscal deficits have been relatively small - despite a low ratio of tax revenue to GDP. The Government believes there is an opportunity to broaden the tax base and improve the way taxation is administered. The budget outturn in the years 1999/2000 to 2003/2004 was as in Table 7. This indicates the scale of revenue and expenditure and the importance of foreign financing. Table 7: Summary of Budget Frame Estimates (1999 2004) in Million TSh.
1999/00 810,298.0 841,326.0 31,028.0 217,233.0 235,603.0 29,690.0 64,340.0 36,650.0 2000/01 929,624.0 1,305,035.3 375,411.3 286,253.2 286,306.0 114,552.7 90,354.2 2,494.4 2001/02 1,042,955.1 1,466,136.9 423,181.8 344,610.9 379,849.4 40,128.6 121,842.5 22,606.6 2002/03 1,217,517.0 1,896,854.1 679,337.1 473,188.6 622,302.1 135,502.6 172,016.5 36,513.9 2003/04 1,393,026.2 2,383,250.2 990,224.0 757,722.3 665,961.0 324,263.0 278,968.6 45,294.4
Item Total Revenue Total Expenditure Budget deficit/surplus Development expenditure and Net lending Grants Financing Foreign Financing (net) Domestic Financing (net)
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10
Source: BOT Monthly Economic Review, December 2003/January 2004
2.1.8
Money and Prices
The following table shows the main financial indicators for 2000 to 2003. Table 8: Tanzania: Financial Indicators for 2000/01 and 2003/04
2000/01 Central Government Finance (Mill TSh) Revenue and Grants Expenditure Adjustment Balance Prices/Financial indicators CPI (1994=100; % change) Exchange Rate TSh: US$ (ave) Exchange Rate TSh: US$ (end-period) Interest Rates (%) Deposit (aver) Discount (end-period) Lending (aver) Treasury bill (aver) M1 (end-period; TSh Mill) M1 (% change, year on year) M2 (end-period; TSh Mill) M2 (% change, year on year) Gross official reserves (US $m) Reserves excluding gold (end-period) 1,215,930.0 1,305,035.3 -25,447.4 -89,105.3 2000 5.9 800.4 803.3 8.1 13.10 20.05 8.5 695,006.5 18.1 1,093,610.9 12.5 974.4 748 2001/02 1,422,804.5 1,466,136.9 3,203.8 -43,332.4 2001 5.1 876.4 916.3 4.7 9.78 20.09 4.68 766,019.9 15.0 1,233,667.0 12.8 1,156.6 920 2002/03 2003/04
1,839,819.1 2,058,987.2 1,896,854.1 2,383,250.2 -79,389.1 -57,035.0 2002 4.6 966.6 976.3 0.0 -324.263 2003 4.6 n.a 1,045.7
3.3 n.a 9.18 n.a 15.76 n.a 4.60 n.a 958,786.6 1,083,761.2 18.0 n.a 1,507,386.5 1,669,610.4 22.2 13.3 1,529.0 n.a 1010
Source: Bank of Tanzania, Monthly economic review, November 2003 and International Financial Statistics (IFS) 2002
In the period covered by the table, average deposit rates have fallen from 8.1 in 2000/01% to 3.3% in 2002/03. Lending rates have also fallen from 20.05% in 2000/01 to 15.76% in 2002/03. (These are weighed average rates calculated by the BoT. Lending rates are prime rates offered by banks. Deposit rates are for savings and time deposits.) The increases in M1 and M2 have fluctuated, as the table shows. Because of the Governments fiscal discipline, the BoT has not had to adopt an excessively tight monetary policy. Although the government has eliminated financial repression by raising interest rates to positive real levels, and allowed free determination of interest rates in the financial market, the cost of borrowing remains excessively high. This is mainly because competition in the sector still remains weak, high risks in lending due to difficulties on the part of the commercial banks to assess the credit worthy of private borrowers, and problems associated
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with the handling of commercial disputes. Such constraints make lenders put the element of risk in calculating the cost of loans. This makes loans expensive leading to excess of liquidity in the banking system while starving the private sector. The government should institute loan repayment enforcement mechanisms by establishing a well-functioning commercial court system and set up a credit rating bureau to reduce the cost of screening prospective borrowers in the banking sector. The BoT will also aim as far as possible to keep the Tanzania shilling competitive and to improve the market for Government securities. Ndissi (2003 BOT) highlights the following plans for securities market: o Development of secondary market, situational analysis and enforcement of dealer obligations; o Development of new tradable market instruments to enable diversification; o Speeding up the formation of the credit information bureau that will enable participants to make informed decisions; and o Conducting sensitisation seminars. The Government and the BoT plan to reduce inflation to between 4 and 4.5% in 2000-3. But even if the rate falls only to 5%, as forecast by the EIU, this will represent modest price increases by past standards and will not harm economic stability. The exchange rate should be relatively stable - in the Governments view it is not overvalued. But it will remain vulnerable to external shocks. The EIUs forecast rate for TSh to the US$ was 984 for 2002 and 1,063 for 2003 (both averages). The exchange rate recorded for the year 2003 was 1,045.7(BoT, 2003) 2.1.9 Balance of Payments
Tanzanias current-account deficit is falling slowly. It fell from 10.34% of GDP in 1999 to 5.95% of GDP in 2000 and to 5.12% of GDP in 2003. Positive influences that will help to bring down the deficit are likely to be: Table 9:
Exports Imports Balance of Visible Trade Balance on
Higher production, and probably higher prices, of gold. Some increase in tourism earnings. Better trends in some commodity prices. Tanzania: Balance of Payments (US $m)
1997 752.6 -1,148.0 (395.4) (403.4) 1998 588.5 -1,382.1 (793.7) (905.4) 1999 543.3 -1,415.4 (872.1) (829.5) 2000 663.3 -1,1367.6 (704.3) (498.6) 2001 776.4 -1,560.3 (783.9) (480.0) 2002 902.5 -1,511.3 (608.8) (251.1) 2003 1,073.8 -1,873.9 n.a n.a
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Current Account (199.8) (505.8) (109.0) (35.1) Overall Balance Source: BOT, Monthly Economic Survey, December/January 2004
17.5
328.8
n.a
2.1.10
Privatisation
In 1993 the Government established the Presidential Parastatal Sector Reform Commission (PSRC) to carry out its programme of privatising large numbers of state-owned organisations. Up to June 2003, a total of 281 parastatals were privatized including 50 that were placed under LART. Among the privatised parastatals, 140 were 100 percent acquired by Tanzanians and 20 paratastals were 100 percent acquired by foreigners, while 121 were privatised through joint venture between local and foreign investors. Among the privatised companies sold to Tanzanians, 15 were sold to the employees of the respective companies through management and employee buyout. In addition, 271 non-core companies were sold. In 2002, emphasis was on preparing strategies to privatise or rehabilitate the infrastructure of service companies including DAWASA, ATC, TANESCO, THA, TRC, NIC and NMB. Up to December 2003, the government managed to privatise Air Tanzania Corporation on joint venture basis and DAWASA on lease Agreement. In order to control the major utility companies, the government has established four regulatory authorities, which are Energy and Water Utilities Regulatory Authority (EWURA), Surface and Marine Transport Regulatory Authority (SUMATRA), Tanzania Communication Regulatory Authority (TCRA), and Tanzania Government Aviation Regulatory Authority (TGARA). Consequently, for the year 2003/04, the government will continue to privatise the major utility companies and their infrastructure, major agricultural and livestock farms. Also, the government will continue to monitor the companies, which have been privatised to ensure that the companies operate efficiently according to the sale contracts. The privatisation programme has been a vital component of the past decades economic reforms. It has contributed greatly to economic growth and to investment. Table 10: Divested/Privatised Public Enterprises Providing Dividends to the Government in million Shillings
Divestiture Year 1. 2. 3. 4. 5. 6. Tanzania Breweries co. ltd Tanzania Cigarette Company Ltd. Tanga Cement Co. Tanzania Portland Cement Co. TPC Arusha DAHACO 1993 1995/6 1995 1997 1999 2000 2001/2002 3,486 1,688 341 299 698 1960 2002/2003 1,984 1,605 384 300 USD 50,000 336 2000
7. THA Source: Presidents Office, Planning and Privatisation, 2003
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2.1.11
Action to Reduce Poverty
The analysis of the information and data from the Household Budget Survey (HBS 2000/01) which was carried out as part of the Poverty Monitoring system, and the Integrated Labour force Survey (ILFS) of 2000/01 has revealed that there were no significant improvements in reducing income and non- income (health, education, employment and housing) levels of poverty of the population over the past ten years. The results show that 19 percent of the population lie below the food poverty line in 2000/01 compared to 22 percent in 1991/92. 36 percent of the population also lies below the basic needs poverty line in 2000/01 compared to 39 percent in 1991/92. Poverty is still more severe in the rural areas. However, income inequality has increased significantly in Dar es Salaam. The implementation of the Poverty Reduction Strategy has started registering notable achievements especially in the education sector and in some poverty indicators within the health sector, urban water supply and rural roads. The challenge facing government in poverty reduction is: 2.1.13 To attain a sustainable economic growth that will reach at least, 8 percent; To improve service delivery to the community (the Government in collaboration with the private sector); To strengthen existing infrastructure, especially key roads, and agricultural irrigation projects; To enable each district prepare and implement medium term Poverty reduction plans; and To stress the need for all able bodied citizens to work. Taxation and Investment Regime
Taxation Table 11:

Corporate Tax Payroll Levy Withholding Tax Capital Gains Tax Import Duties Property Tax Value Added Tax
Tanzania: Taxes
Brief Details 30% of taxable income of corporate entities 4% of gross emoluments paid during the month Varies depending on the tax source. For more information, see Tanzania investment guide On gain from the sale of any interest held on premises or any financial asset. 10% of the difference between the value of the consideration and the adjusted historical cost of the premise or financial asset Up to 25% depending on the tariff band On commercial and residential properties. The local authority fixes the tax rate. In most cases, it is a flat rate depending on the location of the property. 20% on sales of certain goods and services. Applies to companies with over TSh 20m annual sales.
Type of Tax
The principal taxes in Tanzania are as follows:

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Source: Tanzania Investment Guide, 2002 and beyond
2.2
Mandate of the Ministry
Formulation of fiscal, monetary and financial policies, timely and adequate allocation of funds to MDAs, and make close follow-ups on the budget execution in Tanzania. 2.2.1 Functions
Broad Functions of the Ministry include: Formulation of policy issues related to macroeconomic analysis, fiscal, monetary and debt policy and strategy. Overseeing financial aspects of the Government interest as shareholder in public, as well as private enterprises; and advises the Government on various issues pertaining to its investments. Preparation of expenditure targets, review of expenditure performance, and preparation of budget guidelines. Preparation and implementing external aid policies, mobilization and coordination of external aid and regional cooperation. Managing the Government payroll. Overseeing all revenue and expenditure operations of the Government.
2.3
Recent Initiatives and Achievements
Recently, the Ministry of Finance has undertaken some initiatives towards achieving the overall goal of attaining and sustaining macro economic stability and sound financial management procedures. These initiatives are discussed here under. 2.3.1 Public Sector Reform
During the Civil Service Reform Programme (CSRP), the Ministry of finance (MoF) carried out an organization and efficiency (O & E) review. The objective of O & E review was to redefine the roles and functions of the Ministry to conform to the changed role of the Government from being a direct implementor to that of policy development, advisory, supervisory, regulatory, monitoring and evaluation functions. In short, the role of the Government is that of a facilitator of an open market economy. In the on going Public Service Reform Programme, MoF hopes to consolidate and sustain the comprehensive structure and institutional reforms. At the same time, MoF will launch a strategy process aimed at transforming its role, capacity and performance in the delivery of public services on a sustainable basis. 2.3.2 Expenditure Management
The Ministry of Finance is undertaking organizational and systems changes to strengthen the Governments budget execution process, accountability and transparency through:
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(i)
Centralization of the payment and banking processes in Dar es Salaam through the Central Payment System (CPS). The implementation of an improved Budget Classification/Chart of Accounts systems. Improved approaches to cash management and expenditure control. Cash Budgeting and Centralization of Payments
Cash Budgeting is a means to ensure that spending entities live within their allocated funds and to encourage efficiency through hard budget constraints. The objectives of cash budgeting are to: Limit expenditure allocations at any time to resource availability. Bring under control the growing government over expenditure. Introduce and entrench a culture of fiscal discipline i.e. to stop the expectation of supplementary estimates.
To meet these challenges, the Government is now implementing the Government Financing Statistics (GFS) classification and the Integrated Financial Management System (IFMs) using an Epicor package. These measures will meet the financial management and accounting needs of government including those of its Agencies and Projects, and enhance financial sustainability, accountability and transparency in the Government. (ii) Performance Budgeting
Performance budgeting is a technique of budgeting which is result (output) oriented. It seeks to re-orient the old budget system used to be incremental-based to a system that focuses on outputs from government expenditure. This technique was applied on a pilot basis in the Ministries of Education, sciences, Technology and Higher Education, Health, Water, Energy and minerals, Agriculture and Cooperatives, and Works for 1998/1999. The remaining MDAs were introduced to the system during 1999/2000. This technique of budgeting was initiated as a logical extension of the work done by O & E reviews under the Civil Service Reform Programme. O & E reviews started to address the issue of improved efficiency and accountability in service delivery. This would be achieved through the process of Annual Performance Reporting and Service Improvement Planning (APRSIP). Performance budgeting was thus recommended as a tool that could operationalise the whole process. Since the introduction of the technique there has been a lot of improvement in the following areas. Presentation of budgets that are properly linked to the vision, mission, objectives, targets and activities. Elaborate presentation and identification of key players in budget implementation. Attempts to integrate the budget process. Easy monitoring and follow-up because the targets and the activities are stated.
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The government will extend this approach to Regional Administrative Secretaries (RAS) budgets for 2000/2001. MoF has trained budget staff in all MDAs and Regions on this new technique of budgeting within the Strategic Planning Framework. More effort is needed to improve the techniques especially on performance indicators. (iii) Budget Reclassification
Budget classification is about how the budget is classified and coded to show levels of authority, control, accountability and facilitation of economic analysis. The Government took initiatives to improve the budget classification up to 1998. Despite these efforts, the current classification still suffers from unclear item structure which is inconsistent and does not therefore facilitate a meaningful economic analysis. To address the above limitations, the Government has adopted an international classification Government Financial Statistics (GFS). This classification attempts to put in place an economic classification that will facilitate not only control and accountability but also impact analysis of the budget in the economy and different social groups. GFS looks at the budget as a package and thus lays proper ground for budget integration. Budget Officers in all MDAs have been trained on this new budget classification system. (iv) Wage Bill Control
Government expenditure on salary and wages is substantial. Control of expenditure on the wage bill poses a major challenge in the management of the government budget due to high degree of volatility. Expenditure overruns on salaries and wages reduce resources that would otherwise be available for other services thus undermining governments efforts to improve service delivery. In view of the above, MoF initiated a system of overseeing all issues related to the civil service wage bill control by ensuring that expenditures are maintained within the approved budgets. Specifically, MoF undertakes to: Scrutinise and assess all amendments to be entered in the payroll every month. Compile monthly payroll and monthly, quarterly and annual wage bill reports. Liaise with the Civil Service Department to update and maintain a register of the number of employees in the Central and Local Governments, changes in staffing levels and amendments in the payroll. Assess payroll/wage bill trends on a monthly basis. Monitor and keep a record of recurrent and non recurrent payments to be made on the payroll. Work-out wage bill implications from the amendments and examine the effect on the ceiling. Maintain an up-to-date payroll database.
The result has been a drastic reduction in the number of ghost workers, control excess vote, accurate and timely availability of reports.
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2.3.3
Public Expenditure Review (PER) and Medium Term Expenditure Framework (MTEF)
The Public Expenditure Review (PER) has been an ongoing process for several years now. The traditional PER function has focused on the budget process in terms of review of the activities involved e.g. resource forecast and allocation, expenditure management, control and accountability. The underlying objective has been to evaluate performance against approved targets and established procedures and identify shortcomings and corrective measures. However, the current concerns on budget management involve fiscal stability, improved predictability of resource flows, increased efficiency in resource use, budget integration and donor participation in determining resource envelope. To address the above problems, recently PER process has also taken initiatives to facilitate the implementation of medium term expenditure management in Tanzania. This entails three main elements. The first element has to do with improving predictability of the Government budget in terms of resource flows. This will be achieved by implementing a Medium Term Expenditure Framework (MTEF) and increased donor involvement in the budget frame preparation. The second element is in respect of sustainability and consistency of sector targets with priorities and resource envelope. Thirdly, it is also intended that under MTEF the donor support will increase resource allocation across investment and recurrent costs on a medium to longer term basis. 2.3.4 Revenue Collection Management (i) Domestic Revenue Collection
The government revenue comprise of tax revenues and non tax revenues. The tax revenue contribute about 90% of the total revenue. The responsibility of collecting tax revenues is vested upon the Tanzania Revenue Authority (TRA) since 1996. The non tax revenues contribute about 10% of the total domestic revenue. The responsibility of collecting non tax revenue is vested in MDAs. This source is likely to increase as the MDAs responsible for the generation of this revenue are allowed to retain a certain percentage of tax collected as an incentive. The tax administration era in Tanzania can be divided into two i.e. prior to 1996 and post 1996. Prior to 1996, the tax administration was performed by the Revenue Department, namely, the Income Tax Department, Customs and Excise Department and the Sales Tax and Internal Revenue Department which were under the Civil Service and under the Ministry of Finance. The Post 1996 era witnessed the formation of TRA which was established by Act of Parliament, No. II of 1995. TRA is a semi autonomous body operating out of the civil service and was formed in line with government fiscal policy, which among other objectives, was to enhance revenue collection by strengthening tax administration. TRA oversaw one of the major tax reforms, that is, the enactment of the Value Added Tax Act, 1997 which led to the introduction of VAT on 1st July, 1998 in place of Sales Tax and part of receipts based stamp duty. VAT was introduced with the objective of broadening the tax base and increasing revenue yield, promotion of exports by zero rating as well as removing economic distortions. In tandem with this, efforts have been made with the view of increasing efficiency in document processing and improving client compliance.
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Despite all these ongoing initiatives, revenue collections of around 13% of GDP falls far short of the average for the East African region, which is around 20% of GDP. This calls for more concerted efforts aimed at increasing compliance an widening the tax base. (ii) Tanzania Assistance Strategy (TAS)
Since attaining independence more than 40 years ago, Tanzania has enjoyed favorable relations with multilateral financial institutions and bilateral donors. As a result, foreign and has played a very important role in Tanzanias economic and social development. To date, about 30% of the total budget and more than 80% development budget is financed by donors. Efforts to solicit donor assistance have been fragmented, ad-hoc and unpredictable and have resulted in parallelism and duplication of activities. In order to eliminate these deficiencies and build on previous and ongoing efforts to improve sustainability and bring predictability of donor assistance, Tanzania has formulated the Tanzania Assistance Strategy (TAS). TAS is expected to improve Governmentdonor partnership and the utilization of donor resources with the view to ensuring that local ownership is sustainably promoted and an overall national development strategy that would underpin the formulation of individual external strategies is in place. TAS is expected to provide a national framework which will encompass:(a) The national agenda: - Vision and goal - Situation analysis/core development problem - Macro-economic policy framework - Priority programmes/areas - Implementation strategies Monitoring and evaluation. Best Practice development Cooperation: - Smart partnership - Local ownership - Governance - Predictability of resources (MTEF) National Debt Strategy (External)
(b) (c)
2.3.5
Tanzania is one of the countries with a high external debt amounting to an average of US $ 7.5 billion for the past three years. The domestic debt by December 2002 amounted to about TSh. 1,413.7 billion. Given the economic problems which characterized the economy over the past two decades, the governments capacity to service the matured debts declined. However, the Government has been using about 54% of its total revenue to service its debts. This has crowded out resources from other sectors of the economy in particulars the Social Sectors and thus hampered its efforts to eradicate poverty. In addressing the debt problem; he Government established the National Debt Strategy Part I (External Debt) The Main objective of NDS is to reduce the current debts through negotiations with donor countries and institutions. Several debt relief programmes are in place. They include Paris Club, Debt Conversion Debt Buy-back, Multilateral Debt Relief
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Fund and High Indebted Poor Countries (HIPC). The later will be concluded soon. As regard to the incurring of future debts, the Debt Management and Debt Co-ordination Committees formed will advise the Ministry of Finance on contracting foreign loans. The Government in future shall borrow only on highly concessionary terms such as IDA comparable terms with grant element of 78% or above. This condition aims at contracting expensive loans that will further worsen the debt position. 2.3.6 Mainstreaming Gender in the Budget
The Ministry of Finance as the central agency entrusted with the management of public finance i.e. resource allocation of the country, must ensure that the budget, which is an instrument for implementing macroeconomic policies should integrate gender issues in their analysis, planning and programming, hence the concept main streaming gender equality. The main purpose of the programme is to ensure that gender equality objective influence other policy areas e.g. poverty alleviation democratic development and resource allocation as well as equal participation of both women and men. The objectives of the programme are as follows: To engender the microeconomic policies and the Budgetary Instrument. To build technical expertise within the Ministry for gender mainstreaming. To establish Institutional framework for monitoring and Coordination mechanism on gender issues. To improve women participation in finance management as well as in decision making within the Ministry of Finance.
In terms of progress, the 1999/2000 budget guidelines incorporated a section on gender issues. Six Ministries were identified to pilot the Mainstreaming of gender into their sector MTEF these are; Ministry of Community Development, Gender Affairs and Children, Agriculture, Health, Education, Water and Regional Administration and Local Government. Budget officers from central Ministries and pilot sectors were trained in gender analysis skills. The development of tools for engendering the budget is in progress. 2.3.7 (i) Management of Government Property Public Procurement and Supply Management
During the late 1980s the Government policy moved away from an emphasis on government organizations being responsible for all aspects of supply and distribution, and towards a resuscitation of the private sector. Until recently, the Governments supply policy has been based on a highly centralized procurement and distribution system governed by outdated Financial Orders. In line will the ongoing social economic changes and the changing role of the government. MoF initiated a Public Procurement and Supply Management Study which included the whole name of procurement for the public sector.
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The study made recommendations as follows: Review of the whole legal framework, Strengthening Financial Control and Accountability, Establishment of a procurement unit in MoF, separate from CTB, Reconstitution of membership of CTB to include professionals, Human Resources Development, and Dissolution of Government Stores.
MoF is in the process of implementing the study recommendations. (ii) Management of Government Assets
The Ministry of Finance is the custodian of government assets and property Until recently, the control and management of assets was governed by outdated, fragmented and uncoordinated Financial Orders in form of Stores Regulations. Financial Regulations and Guidelines. These regulations coupled with the lack of capacity in data and record keeping, led to poor management. In its effort to address the above problems, the Government during 1997/98 initiated measures for the proper control, management and disposal of government assets and property. The specific initiatives were: To review legal and regulatory framework, To implement and promulgate appropriate Financial and Stores Regulations so as to increase efficiency, accountability and responsibility, and To maintain the appropriate records including standardization and reporting statements on government assets (Assets Register) in annual accounts. 2.3.8 (i) Management of Public Investment Financial Sector Reforms
Given the importance of an effective financial system for overall economic development, the Government is committed to allowing financial intermediaries to operate free of government intervention within the norms of prudential regulations. The government intends to foster competition and improve efficiency in the banking sector by continuing to encourage the entry of private and foreign financial institutions. The encouragement to new entrants, however will continue to be based on a rigorous and transparent licensing process, which compliments the government vision for a safe and sound financial sector. The Government is in the process of establishing a Credit Information Bureau (jointly with the private sector), and a Commercial Court has already been established. (ii) Parastatal Sector Reforms
Over and above the financial sector reforms, in order to fulfill the Governments commitment to reform the economy it has been necessary to implement the parastatal sector reform programme. This is aimed at improving operational efficiency of enterprises, reduce the burden of loss making on the government budget and expand role of the private sector in the economy. ______________________________________________________________________ 21
2.3.9
Reform in the Government Pension Scheme
The delivery of retirement benefits to government employees under the Pension Ordinance Cap 371 has been characterized by a number of complaints and elements of dissatisfaction from the retirees ranging from: Inadequate gratuities and pensions; Inefficiency in processing gratuities and pension that cause delays in making payments; and High costs incurred to collect gratuities and monthly pension.
For the past decade, MoF has undertaken a number of initiatives/programmes aimed at addressing the above weaknesses and improving delivery of gratuity and pension benefits. Such initiatives included changing the Gratuity and Pension factors from 1/510 and 12.5 to 15.5 respectively and the introduction of monthly lump sum payment to pensioners with small monthly pensions. These initiatives succeeded in raising the amounts of gratuity and pension amounts collected at the same time. The administration costs also have been reduced as a result of the decreased monthly pensioners who have been paid their monthly pensions in lump sum. These initiatives could not, however, solve all the problems that face delivery of pension and gratuity benefits. In order to address these problems comprehensively, the Government established the Public Service Retirement Benefit Act No. 2 of 1999. The major changes made in this Act include the establishment of a Contributory Public Service Pension Fund (PSPF) in which all civil servants will be required to compulsory contribute 5% of their monthly salaries. The Government as employer will contribute 15%.
2.3.10
Information Technology Initiatives
In the past, the effectiveness in decision making throughout the Civil Service has been impaired by lack of accurate, reliable and timely information. An effective information system supported by appropriate information technologies (IT) is necessary to support management decisions in order to plan, manage and control the operations of the Public Service. In this regard, IT initiatives aim to: Avail relevant, complete, accurate and timely information to Public Service managers and decision makers, and, Modernize information and communications systems in government offices.
The Ministry of Finance is responsible for Government payroll, Accounting Units and SubTreasuries. The Ministry has substantial Information Technology (IT) infrastructure that is relied on continuously for major tasks and duties (mission critical systems) within the Treasury or related functions in MDA, and Regions. These functions create a need for an effective, reliable and more productive implementation of an IT security programme and appropriate maintenance procedures.
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As a strategy for achieving this objective, there is a need for MoF to play a more proactive role in the management of the common IT strategy and maintenance of the common IT standards.
2.4
Stakeholder Analysis
As part of the strategic planning session, senior managers from the Ministry of Finance carried out a stakeholders analysis. The aim of the analysis was to identify who are the stakeholders of the Ministry and what are their expectations from the Ministry. The expectations were identified in terms of the services they expect but more importantly the attribute that goes with the service expected. A summary of the main stakeholders and their expectations is presented below. Business Community/Investors Macro-economic stability Predictable and equitable tax regime Efficient and effective tax administration Supportive financial infrastructure Timely availability of monetary and fiscal information Good governance Political stability Parastatals Timely and adequate allocation of funds Effective policy guidance Effective tax administration Good governance Macro-economic stability Adequate allocation of funds to MDAs for utilities Academic / Research Institutions Timely and accurate data on revenues and expenditures Timely and adequate funding Increased number of government sponsored students Employment opportunities fro graduates Parliament Robust monetary and fiscal policies Adequate allocation of resources to constituencies Timely and accurate disbursement of allowances and terminal benefits Timely and accurate financial reports Clean audited report Timely and adequate allocation of funds Proper financial management Accurate valuation of government assets
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Development partners Clarity and consistency of policies Good governance and accountability Effective coordination Government ownership Government ownership of programmes and improved partnership Abide by the terms of agreement MoF Employees Attractive terminal benefits Accurate, adequate and timely payment of salaries Transparent and fair career development plan Appropriate codes of conduct Conducive working environment and adequate working tools and equipment Fair performance appraisal, rewards and sanction system Politicians Good governance and accountability Transparency and fairness Sound financial discipline Controller and Auditor General Statutory audit of CAG accounts Total compliance with financial regulations Value for money Public People-focused national budget Sustainable and stable economic growth Transparency in funds allocation and expenditure Quality customer service
Taxpayers Friendly tax policy Efficient tax collection administration Proper utilization of taxes collected Civil Servants Attractive, accurate, adequate and timely payment of salaries Timely release of salary and other funds Transparent and fair carrier development plans Attractive and timely payment of retiring benefits Relevant codes of conduct Regional bodies Micro-economic stability Good governance Predictable tax regime
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Clarity and consistency of policies Improved partnerships Abide by terms of agreements
Pensioners Courtesy in handling pensioners Fair and timely payment of retiring benefits MDAs / LGAs Timely issuance of budget guidelines Timely and predictable release of public funds Timely availability of technical financial guidance Approval of tenders within their validity period Timely availability of financial information Improved fiscal and monetary management practices Sound and strategic resource allocation mechanisms Timely guidance on IT standards in line with international best practices Timely stock verification and disposal of government assets Relevant codes of conduct CSOs Good governance Civic-friendly tax policies and practices Timely availability of information on monetary and fiscal issues Accountability in financial management
Cabinet /Presidency Sound and implementable financial policies Timely and realistic government budget Good financial management Economic stability
2.5
Environmental Scan
As part of the strategic planning process, the Ministry undertook an internal and external environmental assessment in order to identify the strengths, areas for improvement and expectations of the clients. 2.5.1 Internal Assessment of the Ministry (Self Assessment)
As explained in the introduction, the Ministry undertook self-assessment exercise using the European Foundation for Quality Management (EFQM) Business Excellence Model, which helped to identify some strengths and areas for improvements. The following are the key findings of the self-assessment process.
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Criterion Part
Strengths
Areas for Improvement
Leadership 1a: Leaders develop the mission, vision, values and ethics and are role models of a culture of excellence. 1a 1a 1a 1a 1a Improved Performance accountability and Transparency Adherence to staff meetings Existence of Medium Term Strategic Plan Existence of Client Service Charter Openness and Transparency Establishment of internal and external review mechanism Encourage usage of suggestion box Ensure holding of Departmental and workers council meetings Carrying out/ initiate the review process to access achievement
Leadership 1b: Leaders are personally involved in ensuring the organisations management system is developed, implemented and continuously improved. 1b 1b 1b 1b Weekly management meetings Appointment of Substantive Heads of Department Leadership Commitment to improve Performance Enhance capacity for Implementation and monitoring of the MOF Strategic Plan To enhance Managerial and Negotiation Skills of Leaders Strengthen feedback mechanism on Performance at all levels Establish incentive Package for exemplary Performance Budget guidelines issued timely To have review mechanism of Donor conferences To have programmed Donor meeting Involve Stakeholders in major decisions Leaders meet Stakeholders regularly Participatory approach in Budget preparation Enhanced Transparent approach in Conducting Public business Commitment by partners To improve Service delivery Involvement of staff in setting organization objectives /targets Good forum for meeting members of staff Trade Union are members of the management team Management teams meeting held Best staff awarded every year Institutionalized periodic meetings Readiness of Leadership to Cooperate Improvement of an open door policy Effective feedback from Customers
Leadership 1c: Leaders interact with customers, partners and representatives of society 1c 1c 1c 1c 1c 1c 1c 1c
Leadership 1d: Leaders motivate, support and recognise the organisations people 1d 1d 1d 1d 1d 1d 1d Criterion for selecting best workers (rewarding) SASE needs to be extended to staff below TGS6
Policy and Strategy 2a: Policy & Strategy are based on the present and future needs and expectations of stakeholders 2a Improved service delivery accountability and Review mechanism needs to be in place
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Criterion Part transparency 2a 2a 2a Focused budget
Strengths
Close follow - up and execution of programs Institutionalize Customers Service Delivery Surveys Institutionalize Service Delivery Surveys
Stakeholders views are incorporated into government budget Various financial laws reviewed
Policy and Strategy 2b: Policy & Strategy are based on information from performance measurement, research, learning and creativity related activities. 2b 2b 2b 2b 2b A Planning Unit has been established at DAP Enhanced capacity at the Policy Analysis Department promising Having more realistic budget Improved management of financial resources Enforcement of IFMS To have a clear review mechanism of the Policies and Strategies Improvement in Tax collection A policy department in place Wider involvement of stakeholders in policy development Capacity building Regular reviews To increase staff and capacity at Policy Department and Planning Unit to conduct research
Policy and Strategy 2c: Policy & Strategy are developed, reviewed and updated 2c 2c 2c 2c 2c
Compliance to PFA in reporting requirements Comprehensive review of the Strategic plan Committed and involved leadership Participation of stakeholders in institutionalized forum Improvement of revenue collection Efficiency in payments Ensured value for money and accountability Strategic Plan identifies the critical areas Client Service Charter gives direction Establishment of Planning Unit, Communication and Information Unit and LAN External Service Delivery Survey Computerized financial management system (IFMS) Budget sustainability Timely preparation of budget Presence of institutionalized arrangement for Ensure conduct of departmental weekly meetings management and departmental meetings Commitment of top management /leadership Review of effectiveness and frequency of meetings Ensure feedback to workers of the outcome of A System of Evaluation and Monitoring to be established Introduce Customer Needs Study Introduce Service delivery Surveys Capacity building Regular review of the processes
Policy and Strategy 2d: Policy & Strategy are deployed through a framework of key processes 2d 2d 2d 2d 2d 2d 2d
Policy and Strategy 2e: Policy & Strategy are communicated and implemented 2e 2e 2e 2e 2e 2e Close follow - up of the implementation process
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Criterion Part
Strengths meetings
People 3a: People resources are planned, managed and improved 3a 3a 3a 3a 3a 3a 3a 3a 3b 3b 3b 3b 3b 3b DSA is now TIA. IAA has improved Training budget substantially increased and Government sponsorship of risen The Strategic Action Plan identifies HRD as critical Employees kept informed on the functions of Need for immediate review by Master Workers the Ministry council Motivated work force Workers Council in place Adherence of departmental /annual ministerial workers council (calendar) Provision of research facilities Quality services Committed staff A revised MOF structure in place Required number of personnel in place Qualified financial management cadre Presence / availability of Scheme of Service and job description for workers Existence of Training institutions i.e., IFM, TIA Need for regular assessment of Employees morale Ensure timely promotion Trained front line staff in customer care Provision of conducive working environment for staff Deliberate effort of retooling Formulation of clear and elaborate motivation and incentive scheme Institution of effective feedback mechanism /system from workers Preparation of implementable training programme Regular review of TNA Post training evaluation Bond as regards sponsored staff Need to adopt a Human Resource Development Plan Consider review of salary scales to attract retention
People 3b: Peoples knowledge and competencies are identified, developed and sustained
People 3c: People are involved and empowered 3c 3c 3c 3c 3c People 3d: People and the organisation have a dialogue 3d 3d 3d 3d Customer satisfaction Establishment of information education and communication unit (IECU) Management is committed to open door policy Institute Procedure for monitoring and reporting on and meeting the people the MOF Strategic Plan Good relations with Trade Union Open door policy be institutionalized Capacity building to IECU
Commitment of top leadership to involve and Adequate reward for outstanding performance and empower people assessment criteria Institute system for workers to contribute ideas
People 3e: People are rewarded, recognised and cared for 3e 3e Availability of funds to motivate the workers Promotion to be effected in time Improved working environment Review NHIF policy
Partnerships and Resources 4a: External partnerships are managed
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Criterion Part 4a 4a 4a 4a 4a
Strengths Control of payments and procurements Resource mobilization and allocation More accountability and transparency in financial management Budget data Maintained at GFS Codes
Areas for Improvement Procurement procedures not adequate Payment systems not fully secured
Partners confidence in Government increased Review of PER Process required Review of tax reform and consultation required Review of CFAD, Client Service Charter, TAS, IFMS planned
Partnerships and Resources 4b: Finances are managed 4b 4b 4b 4b 4b 4b 4b 4b 4b Improved procurement and tendering processes Efficient regulatory and transparent frame work in place Competent manpower fully computerized finance management system Existence of public financial regulation and procedures Timely preparation of financial statement in line with PFA 2001 Upgrading and change of former DSA to TIA Formation of Technical Audit Unit Introduction and use of Integrated Financial Management System (IFM) The IFMS System and amended acts put a strong base for sound financial management Enhance capacity for implementing and monitoring the Loans, Grants and Guarantee Act (Amended) Review of processes urgently required especially cash budget Expenditure trading and assets management More training on information technology Training for the accounting staff Review of accounting manual Roll out IFMS to regions and councils Audit using computer
Partnerships and Resources 4c: Buildings, equipment and materials are managed 4c 4c 4c 4c 4c Partnerships and Resources 4d: Technology is managed 4d 4d 4d 4e 4e 4e 4e 4e Wider information sharing Control of government expenditure Improved transparency and accountability Budget speech on the Web and in all local papers and radio Required review of Budget Performance Report presentation format Qualified IT personnel To IFMA and LAN give Potential for ICT Intensify IT user in MOF Capacity in IFMS need to be fully utilized ICT Strategy to be developed and Security Data security Capacity building Management of assets and resources
Registers of all government assets maintained Capacity building Review of procedures and processes required Capacity building required Policy on Government Assets required
Partnerships and Resources 4e: Information and knowledge are managed
Increased transparency in resource allocations Ensure timely annual meetings of the workers council
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Criterion Part achieved 4e 4e
Strengths
Improved quality of reports and feedback Review of IFMS required Carry out process re-engineering (Identification of key processes and carry out process re-engineering) Process of budget guidelines preparations should involve all sectors Data capturing of funds from donors needs to be addressed Enhanced capacity of debt management committees
Processes 5a: Processes are systematically designed and managed 5a 5a 5a 5a 5a Systematic payments Establishment of NDCM
Increased efficiency on payment systems Staff recruitment and manning levels improved Access into SASE has been possible
Processes 5b: Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholders 5b 5b 5b 5b 5b 5c 5c 5c 5c 5c 5c 5c 5c HIPC completion Point attained Qualified IT personnel Computerized Financial Management System Improved implementation of regulations in place An instituted public expenditure process jointly with donors and other stakeholders Political commitment We have in place Regulatory Framework Relatively timely payments Response to customer demands Timely payment of terminal benefits Improved pension benefits Particulars of staff now computerized Vision and Mission of MOF clear in the MTSP and Client Charter Improved tax administration Planned review of TAS Need to review TAA Revenue Appeal Act no. 15/2000 Recruitment of Pension manager should be expedited 5d 5d 5d 5e Peoples awareness Access to Information Improved customer relationship Capacity building in human resources and re-tooling Capacity building at local Government level Computerized Financial Management System Improved Revenue base Review of the Client Service Charter and Strategic Plan Enhance capacity building for service delivery and MIS Computerization of Pension Unit Capacity building on process re-engineering Improvement of data management Capacity building with regard to procurement
Processes 5c: Products and services are designed and developed based on customer needs and expectation
Processes 5d: Products and services are produced, delivered and serviced 5d Establishment of TRAB, TRAT and PSPF
Processes 5e: Customer relationships are managed and enhanced
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Criterion Part 5e 5e 5e 5e
Strengths Improved dissemination of information
MOF has adopted Private Sector Participation Secretaries need training and capacity building to (PSP) level of OMASEC Initiative for computerization and LAN will improve Registry Client Service Charter targets lead to change Capacity Building for Registry Staff The Communication and Information Unit to be strengthened Introduction of customer surveys system Commitment to our targets Existence of Suggestion Box Establishment of information office Urgent need for carrying out SDS Monitoring mechanism for compliance Conduct of Customer Surveys Mechanisms of getting customers feedback to know how are they satisfied with our services Tax appeals budget and revenue appeals tribunal Communication and Information Unit Enhance capacity for service delivery as per Client Service Charter Introduce Private Sector Participation in non core functions Mechanisms of getting customers feedback to know how are they satisfied with our services Tax appeals budget and revenue appeals tribunal Communication and Information Unit Enhance capacity for service delivery as per Client Service Charter Introduce Private Sector Participation in non core functions Formal survey system to be in place Review criteria on selection of best worker Establish system for obtaining peoples feedback on the organization Institutionalized weekly departmental meeting where people can air their views Install mechanism of tracking and reporting, formally and constantly Conduct training needs assessment Conduct job analysis Put in place worked put manning levels Put in turnover and absenteeism tracking system Install mechanism of tracking and reporting. data analysis
Customer Results 6a: Perception Measures 6a 6a 6a 6a
Customer Results 6b: Performance Indicators 6b 6b 6b
Customer Results 6b: Performance Indicators 6b 6b 6b
People Results 7a: Perception Measures 7a 7a 7a 7a NONE Best worker award done yearly
People Results 7b: Performance Indicators 7b 7b 7b 7b 7b Society Results 8a: Perception Measures 8a Communication and Information Unit
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Criterion Part 8a 8a
Strengths Client Service charter Gender and Aids Main Streaming in the Budget
Areas for Improvement Analytical and standard reports generation capacity required to be enhanced in the Policy Analysis Department and Planning Unit in Administration
Society Results 8b: Performance Indicators 8b 8b 8b 8b Key Performance Results 9a: Perception Measures 9a Ministry Strategic Plan lists out indicators Need to measure these indicators, report and carry out analysis Strengthen monitoring system and dissemination of information All MDAS are networked Indicators have been properly articulated Urgent roll over to regions and councils Establish periodic mechanism of review of indicators and publishing for public consumption Information Education and Communication unit in place Data collection and all necessary analysis be worked out Periodical review of strategic plan Urgent installation of MOF Website Establish System of obtaining societal feedback
Key Performance Results 9b: Performance Indicators 9b 9b 9b
From the above list, participants identified a number of key areas that need immediate attention of the Ministry in the coming period. These areas are as listed below:
Criterion 1. Customer Results Sub-criterion (a) Leaders are personally involved in ensuring the organizations management system is developed, implemented and continuously improved. Vital Area for Improvement Strengthen feedback mechanism on performance at all levels Establish incentive package for exemplary performance Enhance capacity for implementation and monitoring the Ministry of Finances Strategic Plan Enhance leaders leadership, managerial and negotiating skills Provide more training in leadership skills among all leaders throughout the organization
(b) Leaders motivate, support and recognize the organizations people
Leaders have to explicitly adopt an open door policy by encouraging vertical and horizontal interaction and flow of ideas Leaders have to develop open and measurable criteria for selection and rewarding the best worker, team and department SASE needs to be rolled over to all staff of the Ministry as they all contribute to the Ministrys success, and to service delivery Leaders have to find other financial and non-financial incentives beyond SASE be introduced e.g. accelerated promotions, letters of recognition, honoraria, etc
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Criterion 2 Policy and Strategy
Sub-criterion (a) Policy and Strategy are based on information from performance measurement, research, learning and creativity related activities (a) People resources are planned, managed and improved
3. People
Vital Area for Improvement To increase staff and capacity at the Policy Department and Planning Unit to conduct research Leadership needs to change its mindset toward scientific management approach Need to include the wider involvement of stakeholders in policy development and implementation Need to conduct reviews of policy and strategy, regularly Formulation of clear and well elaborated motivational and incentive scheme Institute effective feedback mechanism and feedback systems from workers Prepare a training programme that is practical, and that can be successfully implemented make the implementation of the training plan a priority Need for regular assessment of employees morale Ensure timely promotions Provide conducive working environment for staff Train staff on customer care Review scheme of service (those that are in place)
(b) Peoples knowledge and competencies are identified, developed and sustained.
4 Partnership and Resources
(a) Technology is managed
(b) Information and knowledge are managed
6 Customer Results
(a) Perception Measures
Urgent Actions Quick Wins Provide Customer care training for frontline staff, receptionists, accountants in pension department, drivers and telephone operators Provide intrinsic and extrinsic motivators and incentive schemes for workers / employees (conducive working environment, transport, loans to staff, land for building houses) Regular review of Training Needs Assessment for our organizations people (staff included) Evaluation of the impact of training received by our employees Creation of a conducive environment to sustain ably improve retention of our People Need to create and adopt a human resource Development Plan Allocation of more funds for training Immediate implementation of the new Public Service Act Intensify the use of IT in the Ministry Fully utilize the capacity of the IFMS ICT and security strategy urgently need to be developed Apply the revised review of Budget Performance Report presentation format Ensure timely annual meetings of the Workers Council Improve the quality of assessment reports and feedback Review of IFMS is required Put in place planned reviews and standards of measurement of Data Security and password control Need to build user capacity in IT among many employees The Ministry needs to know its customers perceptions regarding the Ministry and its services, by conducting a customer survey, and by installing a monitoring mechanism that record customer complaints and feedback
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Criterion 7 People Results
Sub-criterion (a) Perception Measures
9. Key Performance Results
(a) Performance Indicators
Vital Area for Improvement Need to put in place formal employee survey system Review and improve the criteria on selection of Best Worker awards Establish a system for obtaining employees feedback on the organization Urgent rollover of IFMS to Regions and Councils Establish mechanism for periodic review of performance indicators and publishing results for stakeholder consumption
2.5.1.1 Quick Wins As part of an internal assessment and an overall assessment of the people, systems and procedures, the Ministry of Finance Senior Management Group identified a number of areas that if some steps are taken to improve them a major impact is going to be felt by the clients. The areas identified are stipulated hereunder: (i) Customer Care for Frontline Staff and Staff in the Pension Department
Ministry of Finance has a lot of visitors of various nationalities visiting the Ministry Offices every day. One area that has been noted as not giving a good impression is the procedure and the attitude of staff receiving visitors at the Ministry Headquarters. Also, the accountants at the Pension Department do receive a large number of pensioners who visit the offices daily to follow up on their dues. In order to address the weaknesses identified in these areas, the Ministry will conduct a customer care training to the frontline staff, telephone operators and accountants in the pension department to improve their customer care skills but also we will review the system used for receiving visitors and improve on the telephone system to ensure that our clients visiting and/or calling the Ministry do receive high quality services.
(ii)
Staff Motivation
Another area that the was identified as a potential area for quick win is the introduction of intrinsic and extrinsic motivators and incentive schemes for workers/employees such as conducive working environment, transport, loans to staff and land for building houses. (iii) Disposal of Government Assets
The current procedures for disposal of Government [mainly obsolete] assets are too long and cumbersome such that it takes quite a long time to dispose off Government assets. In practice therefore, by the time these items are disposed of, they have so deteriorated that there is hardly any residual value left. The Ministry will therefore review the procedures and streamline them to reduce the time taken to dispose off the assets without compromising control aspects. (iv) Guidelines for the Preparation of the Medium Term Expenditure Framework
When the MTEF process started, the Ministry prepared a set of guidelines and forms that the MDAs use for the preparation of their Medium Term Expenditure Framework. However, ______________________________________________________________________ 34
over time the MDAs and other stakeholders provided comments that the forms are too numerous, and some of them are not necessarily used by them once they have been filled. The Ministry of Finance will look at the procedures and assess to what extent we can streamline this procedures to ease the work of the MDAs but also ensure that we obtain all the relevant information needed from them. 2.5.2 External Environmental Assessment
In assessing the external environment, the Ministry used two key methods; undertaking a service delivery survey and conducting and external environment scan. The objectives of the Service Delivery Survey were threefold; to inform this strategic planning process by providing opinions on how best the Ministry may deliver its services and assessing performance of the ministry in particular issues, to provide information that may be used to review the client service charter and finally to provide data and information that may be used to benchmark future performance improvements. External Environment Scan aimed at identifying the various forces in the external environment and list the opportunities and challenges posed by those forces. Below are the key findings of these two components of the external environment scan. 2.5.3 Findings of Service Delivery Survey The key findings arising out of the survey are structured along the way the lines of the questionnaire. They cover policy perceptions, service delivery options and the assessment of service delivery. Policy Perceptions Awareness of the existence of the strategic plan is fairly high as 70% of respondents from the public service were aware of it and from the private/civil society 53% were aware. Unlike the strategic plan, awareness of the service charter was lower. Forty nine per cent of those in the public service knew about the service charter while 18% from the private /civil society knew about it. Awareness was of both documents were high among those in the Ministry, LGA for public service respondents and Financial services, Business and Development partners for private and civil society.
Service Delivery Options Findings in this section indicate the direction to be taken by the Ministry to improve its services to its clientele. The process of strengthening financial control to ensure effective use of funds could be further enhanced if managers could be given the flexibility to determine the skill mix of staff required to help them deliver on their performance obligations as per the MTEF budget.
Institutionalization of stakeholder participation should either be in the budget process could be achieved by involving them in the process of allocating funds within the sector and verifying that the contents of the MTEF are based on the sector strategic plans or by organizing budget hearings and formal consultations with identifiable private / civil society organizations and passing on the insights gained to the sector ministries through budget guidelines. ______________________________________________________________________ 35
The strategic plan can be linked to the MTEF budget through the introduction of a Development Action Plan Format consistent with the MTEF format. This format should accompany the MTEF budget and the Ministry should ensure consistency between the two by reviewing estimates. Fiscal incentives that will enhance profitability and growth will be a reduction of corporate taxes. Suggestions made to improve the methodology for preparing the budget guidelines are that regional planning officers /stakeholders should be involved in the process, formats should be simplified, budget ceilings should be made realistic and guidelines should be provided on time To remove ghost workers from the payroll, regular census of staff should be carried out, payments should be effected through the banks, payroll should be computerized and there should be the regular updating of payrolls. Assessment Of Service Delivery In budget management the Ministry is not switching expenditure or using insights from sector reviews and knowledge of the sector best practices to advise sector on programme impacts, effectiveness of programme delivery e.g. It is also not providing advice to sector Ministries to prioritize MTEF budget programmes in such a way that reduction in planned allocations will lead to cancellations of specific programmes not an across the board cut in every programme with the consequent result on non completion of every programme. The relationship between development partners and the Ministry could be strengthened by increasing the involvement of partners in the planning, development, budgeting and monitoring process of the Ministry. Tax disputes could be minimized if the tax system could be reviewed, TRA could be objective in their assessment and better monitory systems could be institutionalized. Government could establish specific banks to finance activities of the agriculture sector, corporate farmers unions could be established and guarantee schemes introduced. On a corruption point scale of 1 to 5 with 1 being least corrupt and 5 most corrupt most respondents rated the Ministry between 1 and 3 indicating that some level of corruption is perceived to exist in the Ministry. This perceived corruption is however on the lower end of the scale. Key Issues from the Survey
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2.5.4
2.5.5
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The issues to emerge here will be deduced from the impact of the survey on aspects of the strategic plan of the Ministry. The discussions cover 5 of the 13 Kris in the Ministrys strategic plan. The Kris left out are not directly or materially impacted by the survey outcomes. Macro-economic stability Aspects of the initiatives under this KRA is to enhance the growth of the private / productive sector. Some outcomes of the surveys provide insights as to what stakeholders want in the form of fiscal policy to enhance the growth of the private sector. The survey results reveal the preferences of the respondents with respect to the use of fiscal/ financial incentives in support of the productive sector. The revealed preference in order of relative importance: (I) reduction in corporate tax (ii) government guarantees for loans (14%); customs exemptions (13%); input tax incentives (8%) and subsidies on interest payments (7%) Support to the agricultural sector is key to the growth of the productive sector. The survey suggests some policy options which the ministry could pursue in an attempt to influence financial institutions to increase their lending to the agricultural sector. These in order of relative importance include (i) Setting up of a Government sponsored Bank to finance the agricultural sector (ii) setting up of a cooperative farmers bank (iii) provision of agricultural credit guarantee schemes (iv) strengthening of farmers associations for funds mobilization (v) subsidizing interest on loans to farmers (vi) provision of export guarantee scheme etc. What can be done within this KRA will be (i) to pursue stakeholder consultations to develop a menu of financial policies to influence financial institutions in support of the agricultural sector within the framework of the preference options revealed by the survey. Public Accountability and Financial Management An aspect of the survey results focus on removal of ghost names on the public sector payroll, which falls under financial accountability. Suggestions for the removal of ghost names or measures to ensure the elimination of the practice of retention of ghost workers include in order of importance (i) making staff census a regular feature (19%); (ii) payment of staff through a bank (13%); (iii) computerization of the payroll system (10%); holding ministry heads accountable for existence of ghost names (5%); regular update of staff list (5%), etc. What the survey results provide is a list of actions which could be pursued by the ministry in an attempt to minimize or eliminate the ghost names practice. What could be required of this KRA is to (i) develop a framework with these suggested actions as inputs which could provide systematic efforts to fight the element of ghost names on a continuous basis. Information Advocacy and Dialogue The key objectives under this area include sharing information with stakeholders as means of broadening participation in the budgetary process; ensuring that MDAs have realistic MTEF budgets in place etc. Aspects of the survey outcomes provide insights for designing strategies for their implementation. The survey results reveal that the preference for stakeholder participation in the budgetary process entail the following (i) organizing budget hearings (ii) inviting stakeholders of every
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sector ministry to participate in the hearings and (iii) passing on the insights gained to the sector ministries in the form of budget guidelines. Other specific roles which the NGOs/ private sector stakeholders etc can play in the budgetary process in order of importance as per the survey are (i) seeking ideas from identifiable groups on budget processes and priorities (37%) (ii) Ensuring the participation of stakeholders in the strategic plans of sector ministries upon which the MTEF budgets are prepared (20%) and (iii) organizing public fora for ideas solicitation. Management and Control of Government Budget Some of the survey outcomes provide information which can lead to budget implementation effectiveness an area which could be of concern to this area which currently concerns itself on budget methodology. About a quarter of the respondents, mostly Public Servants opine that the budgetary control process should (i) set allocations for sector ministries and (ii) give authority to sectors to make allocations within their sector. This suggestion is in line with Government s decentralization policy. The ministry could (i) develop the framework for financial decentralization to sector ministries based on the above suggestion. Those who have had the chance to use the budget guidelines of the ministry indicate the following which need to be addressed so that the effectiveness of the budgetary process could be improved. These are in order of importance (i) involvement of Regional Planning Offices in the budgetary process (ii) timely provision of guidelines (iii) alignment of budget ceilings to outputs (iii) simplification of the MTEF format to make it user friendly (iv) budget guidelines should be consolidated and issued from one source (v) zonal budget guidelines should be introduced etc. To enhance the effectiveness of the budgetary process, this KRA could include addressing of these concerns as part of its activity under (i) a framework for enhancing the budgetary preparation process. Impartial and fair determination of tax appeals The goal of this area is to ensure speedy disposal of registered tax disputes. The survey results provide some information which could help in the minimization of the occurrence of tax disputes. These suggestions in order of importance could be addressed under this area: (i) identification of the current sources of conflict as a basis for reviewing tax laws (ii) enhancing the level of objectivity in the assessment process (iii) expanding tax education (iv) improving the accuracy in categorization of tax payers (v) reducing the number of types of taxes (vi) improving the monitoring mechanisms in the collection of taxes. What could be expected of the ministry is to (i) develop and implement a framework for minimizing tax disputes in addition to the initiatives envisaged under this area. The External Environment Scan Opportunities and Threats
Opportunities Anti Corruption Strategy in place Threats Low GDP growth rate
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Vision 2025 TAS PSRP Non Public Service Act O & E reviews PRSP Performance Management System Public Management and Employment of Policy Record Management Project EMS Current initiatives on the financial and parastatal sector reform On going job evaluation and regarding exercise On going pay policy reform including LOC packages Introduction of Performance Improvement Fund Customer satisfaction surveys.
Low revenue effort Misuse of public finances and property Macro-economic instability Inadequate financial resources A heavy debt burden Strong donor dependency High incidence of poverty High rates of unemployment in public and private sectors. Staff poorly remunerated Inefficient tax administration system An unattractive investment climate In adequate communication and coordination between and across sectors General erosion of public service ethics Policies and strategies characterized by parallelism and contradiction limited stakeholder participation in policy strategy development
2.6

Critical Issues
Macro economic stability Coordination High donor dependence o Lack of information on Donor support to NGOs/ communities o Capturing of Donor support for projects in government budget Debt levels Poverty incidence Narrow tax base Tax evasion Low staff morale HIV/AIDS pandemic Corruption Performance monitoring Budget monitoring
3.0 3.1
VISION, MISSION AND VALUES Vision
High economic growth and macro-economic stability, sound financial management and accountability achieved and sustained.
3.2
Mission
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The mission of the Ministry of Finance is to achieve and maintain high economic growth, macro-economic stability, sound financial management through development of robust fiscal and monetary policies and enhancing professionalism and promote the use of Information Technology (IT)
3.3
-
Values
Innovativeness Professionalism Customer focused Commitment to work Efficiency Participatory management Teamwork Timely service delivery Integrity
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4.0
THE PLAN
In carrying out its functions as discussed earlier and guided by its vision and mission, the Ministry has identified seven main key results areas with objectives, strategies and key performance indicators. The Strategic Plan Matrix summary the Plan and an outline is provided hereunder: KEY RESULTS AREA 1: STABLE MACRO-ECONOMIC AND GROWTH AND DEVELOPMENT KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - GDP Growth Rate. - Rate of inflation. - Rate of current Budget Deficit. - Amount of Foreign Reserves. - Size of Trade Balance. - Percentage of the National Debt. - Revenue Collection as a percentage of GDP. Strategic Objective 1: Reduce inflation from 5% in 2004 to 4% by 2009. In order for the Ministry of Finance to maintain a steady GDP growth rate, there shall be a need to continue implementing measure aimed at reducing inflation rate from the current rate of about 5% to 4% in the year 2009. Strategies: - Control of money supply. - Control Budget Deficit. Expected outputs will be: - Money supply growth maintained at 10 percent of total budget. - Maintain budget deficit before grant not exceeding 14% of total budget. Strategic Objective 2: To raise GDP growth rate from 6.3% in 2004 to 8% by 2007 In order for the Ministry of Finance to maintain a steady GDP growth rate, there shall be a need to continue implementing measure aimed at stimulating and sustaining economic growth. MOF will strive to increase the current GDP growth rate from an average of 5% currently attained to 10% by the year 2009.
Strategies: - Implementation of Micro Finance Policies. - Develop and implementation of policies to promote private sector financing. - Enhance resource allocation to priority sectors. - Develop a total quality management (TQM) plan for implementation of micro-finance policies. Expected outputs will be:
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Enhance small and medium enterprises (SME) guarantee schemes from 500 million to 2004 to 5 billion in 2009. Policy for private sector financing in place by 2005. Maintain resource allocation to priority sectors against the budget.
Strategic Objective 3:
To reduce debt stock from 90% of domestic revenue in 2004 to 70% by 2009 The heavy debt burden is one of the causes of macro economic instability and reduced provision of social services in the country. The Ministry will therefore strive to reduce the debt burden of the Country. Strategy: - Implement the National Debt Strategy. Expected outputs will be: - Debt relief negotiations with the remaining Paris Club creditor countries and nonParis Club creditor countries concluded by 2009. - Quarterly debt management committees meetings held. Strategic Objective 4: To increase foreign reserve from 8.5 months of imports in 2004 to 13 months by 2009 To ensure macro economic stability and mitigate impacts of external shocks to the economy, it is important that a country maintains adequate foreign exchange reserves. The country has succeeded to increase the foreign reserve level from only three months of exports few years ago to the 8.5 months of exports in 2004. The Ministry will strive to ensure that the level is increased to at least 13 months of exports by the year 2009. Strategies: - Management of foreign Exchange. - Implement Fiscal measures. Expected outputs will be: - Monthly monetary policy committee meetings held. - Pre budget task force consultative meetings held annually. Strategic Objective 5: To raise revenue collection from 13% of GDP in 2004 to 17% GDP by 2009 Revenue collection in Tanzania has substantially increased from an average of TSh. 25 bn per month in the year 1995/96 to TSh. 104 bn per month in 2004. However, as a percentage of GDP, revenue collection in Tanzania is still low compared to our neighbours, Kenya and Uganda. While Tanzania has reached an average rate of 13% in 2004, our neighbours are within the range of 18.5% to 25%. The Ministry therefore targets to increase our revenue collection as a percentage of GDP to 17% in the year 2009. Strategies: - Implement Tax Reforms to broaden the tax base. - Improve the investment climate. - Promote Tax Payment culture.
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Review collection mechanisms and tax rates. Review incentives for TRA Staff and other Revenue agents.
Expected outputs will be: - The tax base broadened by 2009. - Tax Payer education program regularly conducted by 2007. - Task force on tax reform consultative meetings held yearly by 2006. - Situational analysis study on TRAs operations carried out by 2007. - Legislations regarding investment climate reviewed by 2007. - Collection mechanism in place and tax rates reviewed by 2008. Strategic Objective 6: To ensure sustainable intergovernmental and interstate fiscal and monetary relations by 2009 The United Republic of Tanzania comprises of two Governments, The United Republic Government and that of the Government of Zanzibar. The URT also has a role and obligations as part of a member of the regional bodies to which it is a member. There is therefore a need to ensure relations are harmonious in fiscal and monetary issues. The Ministry therefore aims at ensuring sustainable intergovernmental and interstate fiscal and monetary relations Local Government Authorities financing framework inclusive. Strategies: - Strengthen the Joint Finance Commission (JFC). - Strengthen capacity in handling internal, regional and international co-operation matters. - Strengthen Anti-money laundering activities.
Expected outputs will be: - A proper organization structure for JFC created by December 2004. - Capacity building in CPAD, DLS, DSV and CEF on SADC, EAC and other regional arrangement matters. - Anti-money laundering laws, regulations and other related acts reviewed by 2009. - Meetings to transact routine and special matters held by 2009. - All committee members trained by 2009. - Local Government Authorities financing framework improved by 2009. KEY RESULTS AREA 2: FINANCIAL MANAGEMENT AND ACCOUNTABILITY KEY PERFORMANCE INDICATORS - Level of pilferage of Government funds. - Number of ghost workers in Government payroll. - Number of audit queries in financial reports. - Level of compliance to Public Finance and Procurement Acts. STRATEGIC OBJECTIVES/MTEF TARGETS
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To enhance efficiency transparency and accountability of public funds annually by 2009 Increasing accountability and transparency of public funds is a very important aspect towards improvement management of public finance. The Ministry shall ensure that full accountability of public finance becomes a priority in all MDAs. The Ministry will also ensure that all financial statements/reports are prepared and availed to MDAs in time. On the other hand, to enhance transparency and accountability in the utilization of public funds, it is important that stakeholders participate in the various processes that are being used to review and assess expenditure of public finances. One such process is the Public Expenditure Review that does a thorough review of the expenditure of public funds in a financial year, compare it with allocations and priorities, assessing the impacts or outcomes of the spending. It is therefore important that stakeholders are able to fully participate in this process and for that reason the Ministry will put emphasis on promoting that. Also public financial management is a continuous process that undergoes evolution whereby new best practices come around every day. The Ministry will therefore ensure that it promotes best practices in public financial management both within the Ministry itself and in all the MDAS. As part of public financial management process, accounting of non-tax revenue is important therefore the Ministry shall ensure that the accounts are reconciled timely by the end of each month. The key component of a financial management system is the controls that are put to ensure appropriate utilization of the funds. The MoF will ensure that appropriate controls are put in place to ensure effective use of public funds. To achieve this objective, the Ministry shall undertake the following strategies which are expected to provide a set of outputs listed thereafter. Strategies: - Manage the Government accounting system. - Conduct annual public expenditure review Sessions. - Review the legal and regulatory for control, accounting, auditing and reporting. - Management of Non Tax Revenue collected. Expected outputs will be: - All national loan agreements computerized by 2009. - MDAs receive cheques within 24 hours of voucher list submission by 2009. - Government accounts are timely reconciled by the end of each month. - To extend sustain and maintain a secure, timely and efficient computerized Government accounting and financial management system to all MDAs and local authorities by 2005. - To ensure public accountability and timely release of financial statements reports by 2009. - To extend, sustain and maintain a secure timely efficient computerized Government Accounting and Financial Management System to all MDAs by 2009. - To review Public Finance Act and its Regulations for control, management and utilization of government resources. - To develop human resource capacity and promote MIS for improved public service delivery by 2009. - To establish Government financial reconciliation systems by 2009.
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To monitor, analyze, control and give directives to MDAs regarding vote accounts appropriateness and accuracy and insure all audit queries are properly replied by 2009 To prepare financial reports and allied statements to be submitted CAG on 31st October yearly up to 2007. Replies to audit queries management Audit, letter at Final Audit Report are made. Bank reconciliation statements and allied adjustment for non-tax revenue account are prepared monthly up to 2007. Flash reports for non tax revenue account are prepared monthly to 2007.
To manage and achieve profitability in all public enterprises annually and oversee economic usage of resources in Government institutions (Executive Agencies) by 2009 Although most of the former Government owned enterprises have been privatized, some of the Government Institutions have been turned into Executive Agencies and in some privatized firms, the Government still maintains a shareholding, sometimes even a majority shareholding. It is therefore important, on behalf of the Government, to oversee that Government investments are being effectively and economically utilized.
Strategies: - Establish a modern system of maintaining appropriate records and statement on government investments shares. - Monitoring of Government interests in Public Enterprises/Executive Agencies. - Restructuring of non-profitable enterprises. Expected outputs will be: - To update, Computerize and maintain the treasury registrar investment register by 2007. - To analyse financial statements and other reports and prepare company status report annually. - Maintain records of Government revenue generated from investments/interests annually. - Maintain Government loans and guarantee register quarterly. - Publicize identified Government investments for divestiture quarterly. - To formulate circulars to various TR scheduled activities for executive agencies and public enterprises annually. - Review and audit of management contracts annually. - Attend all Annual General Meetings. - To advise on disposal of government shares/interests annually. - To process necessary approvals for the envisaged divestitures power of Attorney by 2007. Strategic Objective 9: To facilitate compliance for Public Finance Regulation 2001 and Public Procurement Regulations for effective and efficient procurement, management and disposal of Government assets by all MDAs annually by 2009
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In the year 2001, the Government, through the Ministry of Finance, introduced Public Finance and Public Procurement Acts which aim at guiding financial management and procurement in the country. However, compliance to the Acts and Regulations has been rather slow mainly due to lack of understanding by the MDAs on the Acts. An area that seems to suffer a lot from non-full-compliance situation is the that of procurement, management and disposal of Government Assets. The Ministry therefore will put effort to ensure compliance of the regulations especially in the area of procurement, management and disposal of Government Assets. - Conduct stock verification inspections. - Facilitate appointment Boards of Survey. - Identify Assets to be valued. - Adhere to Court Orders. - Check compliance to regulations. - Attend to court. Expected outputs will be: - Stock verification/inspection in all MDAs carried out annually. - Issuance of Guidelines Compliance to PFR 2001 and PPR 2001. - Timely disposal of dormant/unserviceable and expired stocks annually. - To have properly valued Governments assets in all Ministries by 2009. - To provide legal advice on compensation claims and civil cases. - To facilitate speedy Governments compliance to court orders and other compensation claims annually. - Compliance audits carried out annually. Strategic Objective 10: To develop procurement capacity in all MDAs and ensure that all MDAs carry out procurement in accordance with public procurement act and its regulations by 2009 As noted earlier, since the introduction of PFA and PPA of 2001, compliance has not been as high as expected mainly due to capacity of the MDAs to fully implement the requirements of the Acts. The MoF will therefore put efforts in making sure that capacity is built within the MDAs and that the whole new process is institutionalized within the MDAs as part of their other processes. Strategies: - Carry out procurement in accordance with Public Procurement Act and its Regulations. - Develop and institutionalize guidelines and procedures. Expected outputs will be: - To amend the PPA and relieve the CTB (PPRA) from the role of executing procurement of all MDAs. - To review and propose amendments o PPA and its regulations. - To guide and monitor all MDAS in procurement procedures and practice by 2009. - To establish and implement a system for checking and monitoring the procurement processes (through consultant) of all MDAs by 2009. ______________________________________________________________________
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To develop Procurement Capacity Building Strategy for the MDAs and ensure its implementation. To develop a Management Information System for Monitoring and Evaluation of all MDAs. To enhance Procurement Audit and reduce Corruption in procurement to all MDAs.
To ensure timely availability of accurate and updated assets and liabilities report annually One of the areas that the Government experiences weaknesses is on the ability to manage and report on Assets and Liabilities of the Government. During the planning period, the MoF will put emphasis on ensuring that accurate and update assets and liabilities report is prepared timely. Strategies: - Review the control system. - Conduct timely Internal Audit. Expected outputs will be: - To review Internal Control System in order to reduce the number of Audit Queries raised by CAG reduced by 50% from 2003 level by 2009. - To carry out salary tracking to 25 ministries, 15 regions, and 30 District council by 2006/07. - To carry out normal and specialized Auditing to all MoF Department by 2009. - To undertake Audit to All MDAs Executive Agency and Higher learning institution to ensure optional utilization of Government funds. - To undertake 100% vouching of both payments and receipts. Strategic Objective 12: To promote best practice in implementation of projects of technical in nature by 2009 At any particular time, MDAs implement and supervise a lot of projects of various types for and on behalf of the Government. Most of these projects are of technical nature and in many cases the MDAs would need guidance on the best practices of how to implement those projects. The Ministry will, during the planning period, promote best practices in the implementation of those projects with technical nature.
Strategy: - Carry out expenditure tracking, project inspection and technical audits. Expected outputs will be: - To carry out expenditure tracking to MDAs, test audit to 24 Projects and detailed audit to 12 on going/completed project by 2009 and issue corrections actions and measures. - To sublet 5 specialized assignment to technical consultant by 2009. - To update expenditure records by preparing of 30 functional reports by 2009.
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Issue Guidelines on the best practice in the implementation of project of technical nature.
KEY RESULTS AREA 3: RESOURCE MOBILISATION, ALLOCATION AND UTILISATION KEY PERFORMANCE INDICATORS - Revenue collections as a percentage of GDP. - Tax compliance rate. - Number of tax disputes determined against the total. Strategic Objective 13: To have enhanced efficiency and transparency in resource allocation by 2009 One of the major functions of the Ministry of Finance is to ensure adequate allocations of resources to various sectors. To achieve that, it is important to attain and maintain efficiency in the allocation of resources and for accountability purposes, transparency is paramount. The Ministry during the planning period will, therefore, strive to enhance efficiency and transparency in resource allocation. Strategy: - Timely drafting and distributing budget guidelines by December every year. Expected outputs will be: - To release on time budget guidelines with realistic ceilings by December. - To develop performance budgeting indicators by 2007. - To produce Government budget documents and submit to Parliament by June each year. - To monitor the implementation of the Government budget through reports, expenditure tracking and project inspection. - To strengthen the implementation of MTEF by all MDAs by 2007. - To manage Government wage bill. - To prepare and process budget Adjustment by June each year. - To facilitate disbursement of funds to MDAs for budget implementation. To improve MTEF processes in all MDAs and regions by 2009 Medium term expenditure framework is a key tool to enhance efficiency and transparency in resource allocation. However, this process is still only carried out at the National level and even there, the adequacy of the process varies from one Ministry to another. MoF will therefore put efforts to improve MTEF processes in all MDAs and all the regions by 2009. Strategy: - To put in place budget management and analytical tools. Expected outputs will be: - To carry out GFS economic and functional classification by 2007. - To develop MTEF Manual for use by MDAs in preparing MTEF Budgets by 2006.
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To establish gender gaps and gender sensitive indicators in the Budget by 2009.
To propose enactment of tax laws and regulations which are friendly to tax payers by 2009 A major source of Government revenue is tax. For that reason, strategies must be put in place to increase tax revenue. One of the identified impediments to increasing tax revenue is the legal and regulatory framework for tax collection whereby some tax laws are unfriendly such that they motivate tax payers to evade or avoid paying taxes. The Ministry, therefore, will propose enactment of tax laws and regulations that are friendly to tax payers. Strategy: - Timely review and provision of appropriate legal advice on tax legislation annually. Expected outputs will be: - Identification of Legislations to be amended by May every year. - Preparation of Finance Bill by June every year. - Preparation of Government Notices (GNs). Strategic Objective 16: Impartial and timely disposal of tax disputes by 2009 Resolution of tax disputes is an important component for a good tax regime. Disposal of the disputes has to be done fairly and timely. The Ministry will therefore put up a mechanism to dispose off the disputes impartially and timely. Strategies: - Create awareness of tax laws to taxpayers. - Harmonization of Tax Laws. - Revision of the Tax Revenue Appeals Act 2000; and Rules 2001. Expected outputs will be: - Regular seminars and workshops for tax payers conducted. - Identification of legislations to be amended. - Each filed tax appeal be Determined within a period of three months. Strategic Objective 17: To conduct consultations with external partners As part of strategies to increase resource availability to the Government Budget, the Ministry will enhance consultations with external partners. Strategy: - Preparation and firming up of donors commitments by March every year. Expected output will be: - To Review existing agreements with external donors. To conduct physical verification and value for money audit of goods and services delivered/acquired annually by 2009 In order to ensure proper utilization of resources, the Ministry of will be conducting physical verification and value for money audit of goods and services delivered or acquired. ______________________________________________________________________ 49
Strategy: - To conduct site visits to MDAs. The expected output will be: - To undertake 24 visits to MDAs annually. KEY RESULTS AREA 4: EFFICIENCY AND EFFECTIVENESS OF INFORMATION SYSTEMS KEY PERFORMANCE INDICATORS - Number of MoF staff trained on IT. - Number of Ministries capturing Payroll deduction. - Pension Drafts production time. - Number of competent IT MoF Team. - Number of Stakeholders sensitised. - MoF Stakeholders participation in Policy making and progress. - Service delivery satisfaction. - Number of complaints. Strategic Objective 19: To have computer literate MoF staff capable of utilizing the ICT to the maximum The Ministry of Finance has a role to ensure utilization of information and communication technology for various uses within the Ministry and also within the Government. In order to undertake this function adequately, the Ministry itself needs to have people who are well versed and knowledgeable with ICT facilities. Currently the MoF staff are not using the Information Technology tools to the maximum. Strategies: - Carry out training needs assessment (TNA). - Prepare Training Programme. - Implement Training Programme. Expected output will be: - TNA carried out by December 2004. - Training programme prepared by March 2005. - All MoF staff trained in IT as per Training Needs identified by 2009/10. Strategic Objective 20: To roll out the payroll online system for deduction data capture to all Ministries by 2009/10 The Ministry has installed an online payroll system which has a capability to capture deduction data for employees. If this system is properly installed in the Ministries, the deduction data can be entered at the Ministries themselves instead of sending them to the MoF for data entry. Currently, data entry has to be done in batch mode at the MoF Offices which generates a lot of back logs. There is a need to facilitate MDAs to enter deduction data straight into the system. During the planning period, the Ministry will therefore roll out this system to all the Ministries by 2009/10. Strategies: ______________________________________________________________________
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Upgrade the existing IT equipment. Configure the MDAs work places for network connectivity. Train staff on Payroll data entry.
The expected output will be: - All MDAs capturing Payroll deduction data by 2009/10. Production of timely pensioners drafts (cheques) on the due date by 2009/10 A major complaint of the pensioners is delayed receipt of their drafts/cheques. Pension Draft are produced late thus creating complaints from Pensioners. The Ministry will, during the planning period, ensure that this situation is arrested and that pensioners receive their cheques on time. Strategies: - Establish up to date Database on employees record. - Trained staff in Pension issues. Expected outputs will be: - To develop computer programme which includes draft number into the Pension system by 2006/07. - To enter into pension system up to date pension details for draft production in September and May by 2006/07. Strategic Objective 21:
To have competent professional staff team managing and maintaining the ICT resources As indicated earlier, the Ministry of Finance has the responsibility of ensuring that ICT resources are effectively utilized by the MDAs to enhance efficiency and effectiveness. In order to be able to do that, MoF needs to have competent professional team of staff that can manage and maintain ICT resources. Strategies: - Identify the people to compose the team. - Contract out major specialized onetime activities. - Train the team. - Assign the members of the to specific specialized duties. Expected outputs will be: - To set-up Help desk team of 4 IT staff by 2007. - To train 10 IT professionals on short and long course by 2006/07. - To have up to date Antivirus diagnostic tools and software by 2006/07. Strategic Objective 23: Information and Communication Technology (ICT) and Data integrity security policy for MoF established by 2009/10
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Although ICT provides a lot of flexibility and enhances efficiency in Government operations, if data is not well kept, there are a lot of physical and soft dangers facing data in a computerized environment. In addition, in the absence of Policy on ICT malicious operations cannot be prosecuted. To curb the dangers it is important that a common policy is formulated and agreed up to ensure that MDAs abide to certain policies guiding integrity and security of data. Strategies: - Raise awareness to stakeholders. - Technical working group assign to form terms of reference (ToR). - To engage a consultant to assist and guide the formulation exercise. Expected outputs will be: - To conduct three seminar to all stakeholders by 2006/07. - To appoint a technical team. - First policy draft produced by 2006/07. - Approval of ICT policy drat in place.
To produce accurate, reliable and timely payroll pay-slip by 2005/06 Timely payment of salaries is very key to ensuring that public servants are motivated. The role of the Ministry of Finance to ensure that is the production of accurate, reliable and timely payroll slips, currently the information displayed on the pay-slip is inaccurate and many fields are lacking. For that reason the Ministry would like, during the planning period, to do that. Strategies: - Train IT professional. - Accurately fill data sheets. Expected outputs will be: - To prepare payroll GEPF monthly reports according to stakeholders needs up to 2005/06. - Preparation of Lawson system maintenance contract by 2005/06. - To incorporate Budget Division into Lawson system for quick excursion. KEY RESULTS AREA 5: TO IMPROVE SOCIAL SECURITY BENEFITS AND PENSION ADMINISTRATION KEY PERFORMANCE INDICATORS - Number of pensioners paid in time against the total. - Pensioners/customer satisfaction rate. - Number of social security benefits offered and amount paid. - Quality of key information database on military staff and public servants.
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To increase social security benefits and peg the minimum pension at 50% of the minimum pay by the year 2009 Adequate and reliable retirement benefits of gratuity and pension are essential to ensure that retired civil servants continue to lead a normal life after retirement. MOF in collaboration with the Public Service Pension Fund will strive to improve and widen the retirement benefits package and peg the minimum [cash] pension at 50% of the minimum wage, by the year 2009. Strategies: - Review the existing Pension policy. - In collaboration with MLYDS, review the social security policy.
Expected outputs will be: - A new pension policy in place by 2006. - Inputs to the social security policy prepared by 2006. - To review the pension Act and propose amendments. Strategic Objective 26: To widen the base of social security benefits by the year 2009 Adequate and reliable retirement benefits of gratuity and pension are essential to ensure that retired civil servants continue to lead a normal life after retirement. MOF in collaboration with the Public Service Pension Fund will strive to widen the retirement benefits package so that it embraces more than just a cheque. Strategies: - Review the existing Pension policy. - Review data on pensioners. - Study alternative benefits that could be made available e.g. provision of medical cover or loans to retirees, etc. Expected outputs will be: - List of Pensioners and their benefits. - List of alternative extra benefits for pensioners. To ensure all retiring military staff, political leaders and contract employees receive their terminal benefits on the day of retirement by 2009 Timely processing of retirement benefits is another aspect important to pensioners. MoF will endeavour to reduce to a minimum, time taken to process gratuities and pensions to all retiring military staff and other public servants. Strategies - Institute up-to-date personnel records management system. - Establish up-to-date records of all staff about to retire in collaboration with POPSM. - Ensure timely processing of pension benefits.
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Train pension staff on customer focus. Educate military staff and retiree servants on the retiring benefits and procedures.
Expected outputs will be: - All military staff and other retirees records computerized by 2007. - All retirees pension benefits processed before their retirement date by 2007. - Training programme in place and operational by 2007. - Sensitization programme in place by 2006. - All retirees pension benefits processed before their actual retirement date by 2009. Strategic Objective 28: To ensure that all existing retired civil servants receive their benefits timely on their due dates by 2007 Availing pensioners of their benefits when they fall due is a critical service to pensioners. MoF will therefore ensure that all existing retired servants receive their benefits timely as they fall due. Strategies: - Timely processing of benefits to have them ready on due date. - Train Pensions Department staff on customer [pensioners] focus. - Educate pensioners on their benefits and procedures. KEY RESULTS AREA 6: MAINTAIN AND DEVELOP SUSTAINABLE HUMAN RESOURCES CAPACITY TO ENSURE QUALITY SERVICE DELIVERY TO THE PUBLIC KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - Customer satisfaction rate. - Gender Equity in place. - Rate of HIV/AIDS transmission. - Number of professional staff trained on new skills. - Number of quick wins achieved. Strategic Objective 28: To strengthen transparent, merit-based recruitment, promotion and disciplinary procedures among staff by 2008 For the Ministry to be able to perform efficiently and effectively, it is crucial that the human resources in the Ministry be of high caliber. In order to have such people, the Ministry has to have a strong, transparent, merit-based recruitment, promotion and disciplinary procedures among the staff. Strategies: - Review existing procedures and schemes of services for different cadres under MOF. - Undertake recruitment, promotions and disciplinary procedures in compliance with Public Service Act 2002 and Public Service Act Regulations 2003. - Train administrative and Human Resources Management Development officers on new procedures.
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Disseminate code of ethics and the new Public Service Act and its Regulations to all staff.
Expected outputs will be: - Revised schemes of service for all cadres under MOF by 2008. - Vacant posts advertised and filled on merit by 2009. - Performance, seniority and vacancies reviewed by 2009. - Disciplinary actions taken for non-compliance with the Act and Regulations. - Administrative and Human Resources officers trained in Public Service Management Reforms by 2008. - All MoF staff to be sensitized on code of ethics by 2008. - Code of ethics, Public Service Act and Regulations made available to all MoF staff by 2008. Strategic Objective 29: Raise the number and increase competence of professional and technical staff by 2008 Having adequate numbers of skilled personnel is also a prerequisite for good performance. The Ministry will therefore ensure that it has adequate numbers of skilled professional and technical staff. Strategies: - Develop new professional, technological, managerial, negotiation, and analytical and auditing skills. - Contract and recruit consultants to supplement new or scarce skills. Expected outputs will be: - Professional staff trained on new skills by 2006. - To train 6 staff in managerial skills abroad by 2007. - To train 10 staff on Pension Management and Social Security skills by 2007. - To train 10 staff on records management in coordination with Civil Service Department by 2007. - Contract consultants recruited by December 2007. Strategic Objective 30: To ensure gender mainstreaming into MoF by 2009 Taking into account gender issues helps in bridging the current gap existing due to gender. During the planning period, the Ministry will ensure that all the plans and strategies incorporate a gender perspective. Strategies: - Develop MoF gender affirmative action plan in career development. - Conduct gender Sensitization training for all MoF staff.
Expected outputs will be: - Gender employment situation and response analysis prepared by 2005. - Gender affirmative action plan in place by 2006.
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All staff sensitized on gender awareness by 2005.
Strategic Objective 31: MoF Training Policy and Strategy Developed by 2005 For the Ministry to be able to train its staff adequately and fairly, there needs to be a policy that guides training activities of the Ministry. The Ministry will therefore develop a training policy and strategy by 2005. Strategies: - Training Needs Assessment. - Develop comprehensive training programme. Expected outputs will be: - Training Needs Analysis report in place by 2006. - Human resource development programmes in place by 2006. - Tailor-made training developed. - Managerial personnel receive IT training by 2009. Strategic Objective 32: To strengthen the implementation of the anticorruption strategy by 2005 The fight against corruption is a national campaign, whereby all the MDAs are supposed to have in place strategies to curb corruption within the MDAs. MoF already has in place an anti-corruption strategy but during the planning period, we will ensure that its implementation is being strengthened. Strategy: - Review of the anti-corruption strategy. Expected outputs will be: - All staff sensitized on the anticorruption strategy by 2005. - Action plans for implementation of the anti-corruption strategy ready by end of year 2005. Strategic Objective 33: To improve service delivery and reduce the transmission of HIV/AIDS, and Mitigate its impact in MOF staff by 2008 HIV/AIDS is a national disaster whereby an increasing number of people are infected with the virus and therefore suffer from or die of HIV/AIDS and related diseases. The Ministry will make efforts to reduce transmission and mitigate the impact of HIV/AIDS within the Ministry. Strategies: - Carry out HIV/AIDS Situation and Response Analysis Study. - Mainstreaming HIV/AIDS into MOF Finance sector. - Mainstream HIV/AIDS MOF. - Enhance MOF capacity for effective response to HIV/AIDS. Expected outputs will be: - All staff sensitized on prevention of HIV/AIDS and control by 2006. - HIV/AIDS responses mainstreamed in policy development and budgeting by 2005 - Care and treatment for PLWHA.
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Economic and social support to HIV/AIDS affected MOF employees.
Strategic Objective 34: To continue reviewing the MoFs Organization Structure MoF will continuously undertake Organisational and Efficiency Review to determine areas that it can improve its service delivery by reorganization of some sections, or contracting out some functions which are non-core. Strategies: - Implement the job evaluation and staff re-grading exercise. - Hive off, privatize or abolish all non-core functions. Expected outputs will be: - All staff to have clear job descriptions and non-overlapping of duties by 2006. - All non-core functions in MoF hived-off and Contracted to PSP by 2006. Strategic Objective 35: To install Performance Improvement Management in MOF by 2005 As part of the overall Public Service Reforms, the Ministry of Finance has adopted some measures that are necessary to install a performance management system in the Ministry. Some of the measures include the preparation of Five year Strategic Plan, Three Year Annual Operational Plans and Performance Budgets, and one year Annual Action Plans. The Ministry is committed to making this process a success and will therefore continuously review the implementation of this process against the targets and take necessary corrective measures, whenever necessary. Strategies: - Review MoF medium term strategic plan 2000 - 2004. - Operationalise the Revised Strategic Plan 2004 - 2009. Expected outputs will be: - Strategic Plan reviewed after every five years. - Operational plan (MTEF) prepared by June every year. Strategic Objective 36: To Review Client Service Charter annually A client service charter is a commitment to our clients on the level and type of service standards that they should be expecting from the MoF. It is a living document that needs to be reviewed regularly and also implementation of the Ministry activities needs to be compared against the targets set out in the Client Service Charter. Strategies: - Review the implementation of performance based remuneration and the Client Service Charter. - Review Customer satisfaction. Expected outputs will be: - Performance targets prepared by June 2005. - Performance Agreements signed by June 2005. - Conduct customer service delivery satisfaction survey 2005.
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Revised Client Service Charter by June 2005.
To have an increased capacity of 10 accountants and 1 supporting staff by 2007 Training for the PAT staff has been as an important component of the overall achievement of MoF objectives of better service delivery. This objective therefore aims at increasing capacity of the PAT by training staff of the Department. Strategies: - Training and development of staff. Expected outputs will be: - To enhance both local and foreign Training; Continuous Professional Education (CPE) to 10 staff yearly to the year 2007. - To enhance skill and knowledge in computing for 3 members of the staff by 2004/05. Strategic Objective 38: To have a modern library which can accommodate up to 30,000 books with 350 sitting spaces from the present capacity of having only 15,000 books with 40 sitting spaces
Strategy: - Construction of IAA Modern Library. Expected output will be: - 40% of the library complex initially constructed by 2004/05. Strategic Objective 39: To have conducive working studying and living environment within 3 Main Buildings and their allied staff houses by 2006/07
Strategy: - Renovation of existing structures. Expected output will be: - Rehabilitation of 3 IFM Main Building and staff houses by 2004/05. Strategic Objective 40: To have improved efficiency and effectiveness of the information, Education and Communication Unit (IECU) by equipping and providing administrative and personnel services to staff by 2007
Expected outputs will be: - To recruit communication strategist, News Analyst, and Media Management expert, by December 2004. - To recruit a policy marketing and branding expert for image and brand managements. - To recruit information Research and knowledge Management expert by June 2005.
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To train 10 officers locally and abroad in economic and financial journalism, report writing, information and document management, speech writing, web-site management and marketing and communication by 2007. To acquire various office equipment and communication tools/facilities by June 2005.
KEY RESULTS AREA 7: EFFECTIVE CONSULTATIONS AND COMMUNICATION WITH MOF STAKEHOLDERS KEY PERFORMANCE INDICATORS - % of MOF clients accessing information and participating in policy making. - % of MOF clients satisfied with services delivery. - Number of complaints received. - % of the public with knowledge of MOF policies and programmes. Strategic Objective 41: To communicate MoF policies, programmes and rationale and results achieved effectively, so as to enhance transparency and accountability by 2007 In order to enhance transparency, accountability and good governance, MoF will be communicating with stakeholders more effectively to disseminate the policies, programmes and the results thereof. To increase awareness among stakeholders, information sharing with all the MoF stakeholders is important. The Ministry will therefore improve information sharing, advocacy and communication with all stakeholders. Strategies: - Engage a consultant to design the Communication Strategy. - Conduct workshops for discussing and internalization of the draft strategy MOF top Management and staff. - Execute MoF Communications Strategy. - Produce Radio/Television Programs/Spots for promoting MOF policies and results. - Participate in Public Fairs and events e.g. DSM International Trade Fair and Nane Nane. - Produce and disseminate MOF publications -Treasury News Bulletin/Letter, Posters, and Fliers, Banners, Calendars, Brochures regularly; and publish Feature Articles on MOF. - Create an effective mechanism for effective and efficient up-date of information on MOF on Web-Site. Expected outputs will be: - Key issues, policies positions outlined and articulated for enhanced macroeconomic management by June 2005. - MoF Communications Strategy and Action Plan developed by August, 2005. - Workshops conducted by July 2005. - MoF Communications strategy published by September 2005. - Sectoral and Ministerial papers for workshops, Seminars and Conferences coordinated by the Unit by 2009. - Press conferences or briefings held regularly by 2009. - Promotional programs developed and delivered by 2009.
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MoF participate yearly in fairs by 2009. Various publications on MoF and Sectoral reforms, including regular HAZINA News Bulletin/Letters produced by 2009. MoF information on WebSite up-dated regularly by 2009.
To carry out assessment of stakeholders needs and their perception of MoF policies and actions by 2009 To enhance stakeholders involvement in MoF activities, the Ministry will carry out an assessment of stakeholder needs in various aspects and also receive feedback from them on the effectiveness and adequacy of MoF policies and actions.
Strategies: - Devise an effective feedback mechanism from MoF stakeholders and services. - Carry out communications research and analysis, and provide quality advice to MoF policy analysts and top Management. Expected outputs will be: - Media scanning, monitoring and analysis conducted regularly to identify emerging issues and brief the MoF top Management accordingly and prepare rapid responses by 2009. - Monitoring annually using methodical survey method, the perception of stakeholders on MoF policies and service delivery by 2009. - Pre-assessment of various policy opinions through systematic focus group monitoring exercises carried out by 2009. - Priority issues for research identified by December 2005. Strategic Objective 44: To build the capacity of the IEC Unit Recently, a unit responsible for Information, Education and Communication has been established within the Ministry and staffs have already been allocated. However, it is appreciated that specialized skills are required to better manage the unit and its functions. During the planning period, the Ministry will therefore put efforts in building capacity of the Unit. Strategies: - Training needs assessment of the Unit carried out. - Training of the IEC Unit staff to equip them with the required skills. - Acquisition of necessary equipment and facilities by 2005. Expected outputs will be: - TNA carried out by July 2005. - All IECU officers trained in long term and short courses, locally and abroad in economic and financial journalism, communications management, report, & speech writing skills, presentation skills, etc. by 2007. - Various office equipment and facilities acquired by 2005.
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APPENDICES
KEY RESULTS AREA 1: STABLE MACRO-ECONOMIC GROWTH AND DEVELOPMENT KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) No. 1.
GDP Growth rate Rate of inflation Rate of current Budget Deficit Amount of Foreign Reserves Size of Trade Balance Percentage of the National Debt Revenue Collection as a percentage of GDP
Strategies Control of money supply Control Budget Deficit Service Delivery Target Annual money supply growth maintained at 10% by 2009 Reduce budget deficit before grant from 15% in 2004 to 8% of GDP in 2009 Enhance small medium enterprises (SME) guarantee schemes from 500 million in 2004 to 5 billion in 2009 Policy for private sector financing in place by 2005 Private sector financing guarantee of TSh. 100 billion schemes established by 2005 and enhanced to TSh 500 billion by 2009 Output Indicators % growth of money supply against the target % of budget deficit before grant against the target Actual level of credit scheme against the target Policy Document in place Schemes established Responsible CPAD
Strategic Objectives Reduce inflation from 5% in 2004 to 4% by 2009
2.
To raise GDP Growth rate from 5% in 2004 to 10% by 2009
Implementation of MicroFinance Policies Development and implementation of policies to promote private sector financing
CPAD
CPAD
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No.
Strategic Objectives
3.
To reduce debt burden from Debt Stock of 90% GDP to Debt stock of 70% GDP by 2007
Strategies Enhance resource allocation to priority sectors Implement the National Debt Management Strategy
Service Delivery Target Maintain resource allocation to priority sectors against the budget Debt relief negotiations with the remaining two Paris Club creditor countries and the remaining seven non-Paris Club creditor countries carried out by 2009 Quarterly debt management committees meeting held Monthly monetary policy committee meetings held Pre budget task force consultative meetings held annually The tax broadened by 2009 Tax Payer education regularly conducted by 2007 Collection mechanisms and tax rates reviewed by 2008 Situational analysis study on TRAs operations carried out by 2007 Legislation regarding investment climate reviewed by 2007 A proper organization structure for JFC created by December 2004 Framework operationalised by 2007 Capacity Buildings in CPAD, DLS, DSV and CEF on SADC, EAC and other regional arrangements matters by 2007
Output Indicators % of resource allocated to priority sectors against the target Number of debt relief agreements concluded against target Number of Debt Management Committees meetings per annum against statutory requirement Number of monetary policy committee per month Number and date of pre-budget task force consultative meetings Tax measures in budget speech Number of TV/Radio programs conducted Review Report Study report Reviewed Legislation An organization structure for JFC in place by December 2004 Operationalisation of sustainable framework Number of staff attending workshops, short courses and seminars
Responsible CB CPAD
CPAD
4.
To increase Foreign Exchange reserve from 8.5 months of imports in 2004 to 13 months of imports by 2009 To raise Revenue Collection from 13% of GDP in 2004 to 20% GDP by 2009
Management of foreign exchange Implement Fiscal measures Implement Tax Reforms to broaden the tax base Promote Tax Payment culture Review collection mechanisms and tax rates Review incentives for TRA staff and other revenue agents Improve the investment climate Strength the Joint 6.2 Finance Commission (JFC) Establish a sustainable framework for LGAs Strengthen capacity in handling internal, regional and international co-operation matters
ACGEN
5.
CPAD PIO CPAD CPAD CPAD JFC
6.
To ensure sustainable intergovernmental fiscal and monetary relations by 2009
CB CEF/STEF
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No.
Strategies Strengthen Anti-money laundering activities
Service Delivery Target Anti-money laundering Laws Regulations and other related acts reviewed by 2009
Establish a sustainable framework for financing LGA
Operationalise framework by 2007
Output Indicators Number of Anti-money laundering Laws Regulations and other related acts reviewed by 2009 Number of indicators implied with
Responsible DLS
CB
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KEY RESULTS AREA 2: FINANCIAL MANAGEMENT AND ACCOUNTABILITY VFM KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - Level of Pilferage of Government Funds - Number of Ghost Workers in Government Payroll - Number of Audit Queries on financial reports - Level of Compliance to Public Finance and Procurement Acts
No. 7. Strategic Objectives To enhance efficiency Transparency and accountability of public funds annually by 2009. Strategies Efficient Management of Government Accounting system. Service Delivery Target All national loan agreements computerized by 2009 MDAs receive cheques within 24 hours of voucher list submission by 2009. Government accounts are reconciled by the end of each month by 2006 A secure, timely and efficient computerized Government Accounting and financial Management System extended to all MDAs and Districts, sustained and maintained by 2009 Review and evaluation performance of government budget carried out quarterly. To ensure public accountability and timely release of financial statements by 2009 Indicators Computerized reports Number of registered complaints from MDAs Reconciliation report Computerized Accounting systems Responsible ACGEN ACGEN ACGEN ACGEN
Conduct annual public expenditure review Sessions Review the legal and Regulatory for control, accounting, Auditing and reporting. Ensure efficient computerized accounting and financial management system Review the Public Finance Act and its regulations
PER Report
CB DAD CEF ACGEN
Financial Statements
To extend, sustain and maintain a secure, and efficient computerized Government Accounting and Financial Mgt System in all MDAs by 2009 To review Public Finance Act and its Regulations for control, management and utilization of government resources by 2009
Computerized Accounting System
ACGEN
Reviewed Act and Regulations
DLS
______________________________________________________________________
65
No.
Strategies Develop human resources
Service Delivery Target To develop human resource capacity and promote MIS for improved public service delivery by 2009.
Indicators Number of trained Government officers in MIS Circulars and Directives
Responsible DCS
Monitor performance of MDAs on vote accounts
To monitor, analyze, control and give direction to MDAs regarding vote accounts appropriateness and accuracy; and ensure all audit queries are properly replied by 2009. To prepare financial reports and Allied statements to be submitted CAG on 31st October yearly by 2007. Replies to Audit Queries management Audit, letter at Final Audit Report timely and adequately made by 2007 Bank Reconciliation statements and allied adjustment for non-tax Revenue account prepared monthly by 2007. Flash Reports for non-tax revenue account prepared monthly by 2007.
ACGEN
Timely prepare financial reports
Timely preparation of Final Accounts Timely Replies to PAC Reports
PAT
Timely replying to audit queries
PAT/ACGEN
Manage Non Tax Revenue collected.
Bank Reconciliation statement. Flash Reports
PAT
PAT
______________________________________________________________________
66
No. 8.
Strategic Objectives To manage and achieve profitability in all public enterprises annually and oversee economic usage of resources in Government Institutions (Executive Agencies).
Strategies Establish a modern system of maintaining appropriate records and statement on government investments shares.
Service Delivery Target To update, Computerize and maintain the Treasury Registrar investment register by 2009 To analyse financial statements and other reports (MIR) and prepare company status report annually by 2009 Maintain records of Government Revenue generated from investments/interests annually by 2009 Maintain physical Government Loans and guarantee register quarterly by 2009
Indicators Number of enterprises captured in the data base. Number of financial statements analysed. Investments Register Loans and Guarantee Registers
Responsible TR/ACGEN
Monitoring of Government interests in Public Enterprises/Executive Agencies
Wage circulars to various TR scheduled activities for executive Agencies formulated annually by 2009. Circulars to various TR scheduled activities for public enterprises formulated annually by 2009 To advise on disposal of government shares/interests annually by 2009 All Annual General Meetings attended by 2009 Management contracts Reviewed and audited annually, by 2009
Number of Circulars Number of contracts reviewed Number of meetings attended
TR
Restructuring of non-profitable enterprises. 9. To facilitate compliance to Public Finance Regulations 2001 and Public Procurement Regulations Conduct stock verification inspections Issuance of Guidelines
Necessary approvals for the envisaged divestitures processed by 2009. Stock verification/inspection in all MDAs carried out annually by 2009
Number of restructured enterprises No. of SV Reports Number of guidelines issued
TR
DSV ES-CTB
______________________________________________________________________
67
No.
Strategic Objectives 2001 for effective and efficient procurement, management and disposal of Government assets by all MDAs annually.
Strategies Facilitate appointment of Boards of Survey. Identify Assets to be valued. Adhere to Court Orders Check compliance to regulations. Provide legal advise in compiling claims and civil cases
Service Delivery Target Timely disposal of dormant/unserviceable and expired stocks annually by 2009 Formulation of Board rules in all Ministries by 2009. Legal advice on compensation claims and civil cases attended by 2009 Guidelines with respect to PFR and PPR, 2001 issued by 2009 To facilitate speedy Governments compliance to court orders and other compensation claims annually by 2009 Compliance audits carried out annually by 2009
Indicators Number of disposal reports All government assets value reflected in public accounts (CAG Reports) Number of claims settled Number of claims & civil cases process Number of compliance audits attended
Responsible ACGEN DLS
DLS DTAU/DSV
10
To develop procurement capacity in all MDAs and ensure that all MDAs carry out procurement in accordance with public procurement Act and its Regulations by 2009.
Amend the PPA and its regulations to relieve the CTB (PPRA) from the role of executing procurement of all MDAs.
PPA amended by 2005
Amended PPA
ESCTB/DLS
To guide and monitor all MDAS in procurement procedures and practice Establish and implement a system for checking and monitoring the procurement processes of all MDAs
All MDAs abide to procurement procedures and practice by 2009
Number of MDAs fully abiding to PPA
ESCTB/DLS
System established and operational by 2009
System in place
ESCTB/DLS
______________________________________________________________________
68
No.
Strategies Develop Procurement Capacity Building Strategy for the MDAs and ensure its implementation Develop a Management Information System for Monitoring and Evaluation of all MDAs. Enhance Procurement Audit and reduce Corruption in procurement to all MDAs.
Service Delivery Target Capacity Building Strategy developed by 2007 Capacity building fully implemented by 2009 MIS for Monitoring and Evaluation installed in all MDAs by 2009
Indicators Strategies in place No. of MDAs participating MIS developed and in use
Responsible ESCTB/DLS
ESCTB/DLS
Procurement Audits carried once a year in all MDAs by 2009 Strategy for preventing corruption in procurement developed in place by 2009
Number of audits carried out Number of reported corruption cases Asset register Liabilities register
ESCTB/DLS
11
To ensure timely availability of accurate and updated Assets and liabilities report annually by 2009
Establishment of Assets register Establishment of liabilities register
Asset Registration in place in 2009 Liability register in place by 2009
DSV
To have an effective internal control system To carry out normal and specialized Auditing to all MoF Department by 2009
Establishment of effective control system by 2009
System in place
ACGEN
100% vouching of both payments and receipts undertaken.
Number of Departments in which normal and specialized audit has been performed No. of Audited vouchers and receipts
CIA
______________________________________________________________________
69
No.
Strategies Undertake salary tracking
Service Delivery Target Salary tracking to 25 ministries and 15 regions and 30 District council carried out by 2009
Indicators Number of Ministries, regions and districts in which salary tracking has been performed. Number of MDAs/ projects with Expenditure tracking reports Tests conducted
Responsible CB/DCS
12
To promote best practice in implementation of Projects of a technical nature by 2009.
Carry out expenditure tracking, project inspection and technical audits
Expenditure tracking of MDAs, Test Audit of 24 Projects Detailed audit of 12 on going/completed projects carried out by 2009 and issue corrective actions and measures. Expenditure records updated by preparing 30 functional reports by 2009. Guidelines on the best practice in the implementation of project of technical nature issued yearly by 2009.
DTAU
Number of functional reports against target Guidelines issued
______________________________________________________________________
70
KEY RESULT AREA 3:
RESOURCE MOBILISATION, ALLOCATION AND UTILISATION
KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - Revenue collections as a percentage of GDP - Tax compliance rate - Number of Tax disputes determined against total
No. 13. Strategic Objectives To have enhanced efficiency and transparency in resource allocation by 2009 Strategies Timely drafting and distributing guidelines by December every year Service Delivery Target Economic and financial data collection and analyzed by October every year Budget guidelines with realistic ceilings released by December every year Performance budgeting indicators developed by 2007 Government Budget Documents produced and submitted to Parliament by June each year The implementation of MTEF strengthen to all MDAs by 2007 To manage Government wage Bill To prepare and process Budget Adjustment by June each year GFS economic and functional classification carried out by 2007 MTEF manual for use by MDAs in preparing MTEF Budgets developed by 2006 Gender gaps and gender sensitive indicators established in the Budget by 2007 Legislations to be amended & identified by May every year Finance bill prepared by June every year Government Notices (GNS) prepared Regular seminars and workshops to tax payers conducted Output Indicators Number of MDAs with budget guidelines Draft budget guidelines circulated Performance indicators in place Government Budget Documents issued Performance based budgeting in place Monthly wage bill reports Approved re-allocation warrants GFS Classification codes MTEF Manual Gender gaps and gender sensitive indicators Number of Tax laws to be amended Finance Bills prepared in time Number of GNS issued Number of seminars and workshop conducted on tax laws Responsible CB CB CB CB CB CB CB CB CB CB CB DLS
14.
To improve MTEF processes in all MDAs and regions by 2009
Put in place budget management and analytical tools
15.
Timely review & provision of legal advise on tax legislation annually Impartial and timely disposal of Tax disputes by
Review and amendment of tax laws and regulation
16.
Create awareness of tax laws to tax payers
TRAT
______________________________________________________________________
71
No.
Strategic Objectives 2009
Strategies Harmonization of Tax Laws Review of the Revenues Laws as regards dispute resolution annually To review existing agreements with external donors To promote best practice in implementation of projects of technical nature by 2006/09
Service Delivery Target Legislations to be amended & identified yearly Each filed tax appeal be determined within a period of three months
Output Indicators Number of laws harmonized Number of tax disputes determined Time taken to determine an appeal against the target Financial commitments by donors
Responsible DLS TRAT
17.
Resource mobilization allocation and utilization Financial Management and accountability VFM
Preparation and firming up of donors commitments by March every year Carry out expenditure tracking to 36 districts, test audits to 24 projects and detailed audits to 12 on going/completed projects by June 2009 Sublet 3 specialized assignments to technical consultants by June 2009 Issue guidelines on the best practice in the implementation of the project of technical nature by June 2009 Prepare 4 quarterly Mid-Year Review and Annual reports on MTEF performance budgets by 2006/9 Prepare a new MTEF budget and submit the same by 2006/9
CEF
18.
Number of goods and services in place Number of reports
DTAU
______________________________________________________________________
72
KEY RESULTS AREA 4: EFFICIENCY AND EFFECTIVENESS OF INFORMATION SYSTEMS KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - Number of MoF staff trained on IT - Number of Ministries capturing Payroll deduction - Pension Drafts production time - Number of competent IT MoF Team - Number of Stakeholders sensitized - MoF Stakeholders participation in Policy making and progress - Service delivery satisfaction - Number of complaints
No. 19. Strategic Objectives To have computer literate MoF staff capable of utilizing the ICT to the maximum by 2009 Strategies Carry out training needs assessment (TNA) Prepare Human resource development programme Implement HR Development Programme Upgrade the existing IT equipment. Configure the MDAs work places for network connectivity. Train staff on Payroll data entry. 21. Production of timely pensioners drafts (cheques) on the due date by 2009. To have competent Professional staff team managing and Establish up to date Database on employees record. Train staff in Pension issues. Identify the people to compose the team. tabase established by 2007 All relevant staff trained on pension issues by 2007 Help desk team of 4 IT staff set-up by 2007. Database established Number of staff trained Help desk set up DCS/DoP DCS/DoP DCS Service Delivery Target TNA carried out by Dec 2005 Human Resource development Programme prepared by June 2006. All MoF staff trained in IT as per Training Needs identified by 2009/10. All MDAs capturing Payroll deduction data by 2009. Indicators TNA document indicating breakdown of needs HR Development plan No. of staff trained on IT against target Number of MDAs able to work online. DCS Responsible DAP/DCS DAP/DCS DAP/DCS
20.
To roll out the payroll online system for deduction data capture to all Ministries by 2009.
22.
______________________________________________________________________
73
No.
Strategic Objectives maintaining the ICT resources.
Strategies Train the team.
Service Delivery Target
Indicators
Responsible DCS/DAP
Contract out major specialized onetime activities 23. Information Communication Technology (ICT) and Data integrity security policy for MoF Established by 2009. Raise awareness to stakeholders Assign Technical working group to form terms of reference (ToR) Engage a consultant to assist and guide the formulation exercise.
10 IT professionals trained on short umber of IT professionals and long course including on-thetrained against the target job by 2007. All one time activities contracted Number of one time activities out by 2009 contracted out To conduct three seminar to all stakeholders by 2007. A technical team appointed by 2005 First policy draft produced by 2008 Approval of ICT policy draft by 2009 All IT professional well trained on payroll systems by 2006 All data sheets accurately filled by 2005 Numbers of stakeholder sensitive ToR in place Policy document in place
DCS
DCS/DAP DCS/DAP DCS/DAP
24.
Accurate, reliable and timely payroll pay-slips produced by 2005/06.
Train IT professional
Number of IT professionals trained % of data sheets with errors
DCS
Ensure accurate filling of data sheets.
DCS
______________________________________________________________________
74
KEY RESULTS AREA 5: TO IMPROVE SOCIAL SECURITY BENEFITS AND PENSION ADMINISTRATION
KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS)
No. 25.
Number of pensioners paid in time against the total Pensioners/customer satisfaction rate Number of social security benefits offered and amount paid Quality of key information database on military staff and public servants.
Strategic Objectives Strategies Review the existing Pension policy. In collaboration with MLYDS, review the social security policy Service Delivery Target A new pension policy in place by 2006. Inputs to the social security policy prepared by 2005. Pension Act reviewed by 2006. Number of Pensioners and their benefits determined. All military staff and retirees servants records computerized by 2007. All retirees pension benefits processed before their retirement date by 2007. Training programme in place and operational by 2006. Sensitization programme in place by 2006. Output Indicators Policy document in place. Proposed inputs prepared. Reviewed Act in place Updated records in place. Responsible ACGEN ACGEN ACGEN ACGEN
To increase social security benefits and peg the minimum pension at 50% of the minimum wage by the year 2009. To widen the base of social security benefits by the year 2009 To ensure all retiring military staff, political leaders and contract staff receive their terminal benefits on the day of retirement by 2007.
26.
Review data on pensioners.
27.
Establish up-to-date records of retirees in collaboration with POPSM. Ensure timely processing of pension benefits. Train pension staff on customer focus. Educate military staff and retiree servants on the retiring benefits and procedures.
Number of records.
ACGEN
Number of retirees receiving timely pension. Number of personnel trained. Radio, Television programmes in the air Number of Booklets/ Leaflets/Brochures Percentage of retirees receiving their pensions on time
ACGEN
ACGEN
28
To ensure that those already on retirement receive their benefits on the due dates
Ensure timely processing of pension benefits
All retirees benefits processed by the due date by 2006
ACGEN
______________________________________________________________________
75
No.
Strategies Train Pension Department staff on customer focus Educate those about to retire and retirees on the procedures for processing benefits
Service Delivery Target Training programme in place and operational by 2007 Sensitization programme in place by 2006
Output Indicators Number of staff trained Radio, Television programmes/Advertisements aired Number of booklets/ Leaflets/Brochures distributed
Responsible ACGEN ACGEN
______________________________________________________________________
76
KEY RESULTS AREA 6: MAINTAIN AND DEVELOP SUSTAINABLE HUMAN RESOURCES CAPACITY TO ENSURE QUALITY SERVICE DELIVERY TO THE PUBLIC
KEY PERFORMANCE INDICATORS (OUTCOME INDICATORS) - Customer satisfaction rate - Level of Gender Equity - Rate of HIV/AIDS Transmission - Number of professional staff trained on new skills - Number of quick wins achieved - Number of MoF staff aware of communication policy and strategy No 29 Strategic Objectives To strengthen transparent, meritocratic recruitment, promotion and disciplinary procedures among staff by 2008. Strategies Review existing procedures and schemes of services or cadres under MoF. Train administrative and Human Resources Management Development officers on new procedures. Disseminate code of ethics and the new Public Service Act to all staff. Develop new professional, technological, managerial, negotiation, and analytical and auditing skills. Services outputs delivery target Revised schemes of service for all cadres under MoF by 2008. Administrative and Human Resources officers trained in Public Service Management Reforms by 2008. Output indicators Amended schemes of service. Responsible DAP
No of Ad. & HRDM officers trained in relevant fields.
DAP
All staff to be sensitized on code of ethics by 2008. All Professional staff trained on new skills by 2006 6 staff trained in managerial skills abroad by 2007. 10 staff trained on Pension Management and social security skills by 2007. 10 staff trained on records management in coordination with Civil Service Department by 2007.
30
Raise the number and increase competence of professional and technical staff by 2008.
Number of staff sensitized on the code of ethics against the total Increased professional and technical capacities.
DAP DAP
Contract and recruit consultants to bring new scarce skills. 31 All Professionals Technical staff have access to IT. Prepare a retooling plan
Contract consultants recruited by December 2007. A retooling plan in place by 2005.
Number of consultants recruited Retooling plan implemented
DAP DAP
______________________________________________________________________
77
No
32
Strategic Objectives (Computer, telephone and adequate furnished office space) by 2009. To Ensure Gender mainstreaming into the MoF by 2009.
Strategies
Services outputs delivery target
Output indicators
Responsible
Develop a gender affirmative action plan in career development.
Gender employment situation and response analysis prepared by 2005. Gender affirmative action plan in place by. 2006 All staff sensitized on gender awareness by 2005. Training Needs Analysis in place by 2005.
33
MoF Training Policy and strategy Developed by 2005.
Conduct gender Sensitization training for all staff. Training Needs Assessment.
Develop and implement comprehensive training program.
Training programmes in place by 2005. Tailor-made training. Training IT managerial skills short /long-term training programme by 2009.
Gender disaggregated data in place. Implementation of Gender Affirmative Action Plan. Number of Staff sensitized on gender concerns Training Programmes implemented as per strategic plan. Training policy and strategy Document in place. Number of staff trained in various relevant fields. Training Evaluation Report Number of staff sensitized.
DAP DAP DAP
DAP DAP
34
To strengthen the implementation of the anti corruption strategy by 2005.
Review of the anti-corruption strategy.
All staff sensitized on the anti corruption strategy by 2005. Action plans for implementation the anti-corruption strategy ready by end of year 2005.
DAP
35
To reduce the transmission of HIV/AIDS, and Mitigate the Impact of HIV/AIDS by 2008.
Carry out HIV/AIDS Situation and Response Analysis Study.
All staff sensitized on prevention of HIV/AIDS control preventions by 2006.
Quarterly reports submitted to the POG (Presidents Office Good Governance) Number of staff sensitized on HIV/AIDS transmission, prevention and control. HIV/AIDS situational analysis study report by 2005. MoF HIV/AIDS work place Policy. DAP
Mainstreaming HIV/AIDS: into Finance sector. Mainstream HIV/AIDS: Ministry and Institutions (Workplace
HIV/AIDS responses mainstreamed in policy development and budgeting by 2005. Care and treatment for PLWHA
______________________________________________________________________
78
No
Strategies Interventions). Control and prevent the transmission of HIV and mitigate Enhance Institutional capacities for effective response to HIV/AIDS response. Implement the job evaluation and regarding exercise. Hive off, privatize or abolish all non-core functions. Review MoF medium term strategic plan. Operationalise the Strategic plan. Review the implementation of performance base remuneration and the Client Service Charter.
Services outputs delivery target Economic and social support to HIV/AIDS affected people. (employees/family members including orphans).
Output indicators MoF HIV/AIDS Strategy 2004/08 MoF HIV/AIDS Action Plans Budget 2004/05.
Responsible
36
To review the MoFs Organization Structure by 2009.
All staff to have clear job descriptions and nonoverlapping of duties by 2006. All non-core functions in MoF hived off and Contracted to PSP by 2006. Strategic Plan reviewed every after two years. Operational plan prepared by January every year Performance targets prepared by June 2005 Performance Criteria signed by June 2005.
Number of staff with Clear Job Descriptions, number of Contracts for non core functions (Engagement of PSP) Revised strategic Plan Operational Plan Document Reviewed annual strategic plan/action plans/targets
DAP
37
38
To review the implementation of Performance Improvement Management by 2005. To Review Client Service Charter annually
DAP DAP
DAP Review Customer service satisfaction. Conduct customer service delivery satisfaction survey 2005. Revised Client Service Charter by June 2006. To enhance both local and foreign Training Continuous Professional Education (CPE) to 10 staff fearly to the year 2007. To enhance skill and knowledge in computing services for 3 members of the staff by 2004/05. 40% of the library complex initially constructed by 2004/05. Customer Survey Reports.
39.
To have an increased capacity of 10 accountants and 1 supporting staff by 2007.
Training staff
Number of staff trained.
PAT
40.
To have a modern library which can accommodate up
Construction of IAA Modern Library.
Library Constructed
PAT
______________________________________________________________________
79
No
41.
Strategic Objectives to 30,000 books with 350 sitting spaces from the present capacity of having only 15,000 books with 40 sitting spaces. To have conducive working studying and living environment within 3 Main Building and their allied staff houses by 2006/07.
Strategies
Services outputs delivery target
Output indicators
Responsible
Renovation
Rehabilitation of 3 IFM Main Building and staff house by 2004/05.
Improvement of Office Buildings.
PAT
______________________________________________________________________
80
KEY RESULTS AREA 7: EFFECTIVE CONSULTATIONS AND COMMUNICATION WITH MOF STAKEHOLDERS KEY PERFORMANCE INDICATORS - % of MOF clients accessing information and participating in policy making. - % of MOF clients satisfied with services delivery. - Number of complaints received - % of the public with knowledge of MOF policies and programs.
No. 42. Strategic Objectives Increase awareness among the stakeholders (media/Public etc) on MoF policies and on going programs by 70% by 2007. Strategies Conduct regular publicity campaigns Service Delivery Target Produce 52 Televisions/ Radio Programmes. 52 short Television/Radio spots produced per year by 2007 Press Briefings/conferences held monthly by 2007. Participate In Dar es Salaam International Trade Fair annually by 2007. Quarterly Treasury News Bulleting produced by 2007. Quarterly workshops, seminars and conferences held by 2007. Annual calendars and monthly fliers, posters, writing of feature articles; fliers, posters etc. produced by 2007. To develop MOF communications strategy and action plan by June 2005 Output Indicators Number of TV/Radio programmes produced against the target Number of TV/Radio spots produced against the target Number of press briefings held per year against the target Participation in Trade Fairs Number of Quarters bulletin produced Number of workshops per quarter Calendars, fliers, posters produced Responsible IECU IECU IECU IECU IECU IECU IECU
Engage a consultant to design the Communication Strategy.
MOF Communications Strategy in place by June 2005. % of MOF internal and external stakeholders well informed and participating in policy making and programs by 2007.
IECU
______________________________________________________________________
81
No.
Strategies Conduct workshops for discussing and internalization of the draft strategy MOF top Management and staff. Publish and deliver the strategy with tabling of 2005/06 budget. Produce Radio/Television Programs/Spots for promoting MOF policies and results. Participate in Public Fairs and events e.g. DSM International Trade Fair and Nane Nane Produce and disseminate regularly MOF publications -Treasury News Bulletin/Letter, Posters, and Fliers, Banners, Calendars, Brochures and writing of Feature Articles on MOF. Create an effective mechanism for effective and efficient up-date of information on MOF in Web-Site. Information dissemination
Service Delivery Target Workshops conducted by April 2005
Output Indicators Number of workshops conducted
Responsible IECU
Strategy Published by May 2005. Weekly programmes/spots produced by 2007
Strategy Document in place Number of MOF promotional programs/publications designed and disseminated. Number of fairs attended per year
IECU IECU
Yearly participation in fairs
IECU
Various publications on MOF and Sectoral reforms, including regular Treasury News Bulletin/Letters produced by 2007
Number of publications produced and disseminated
IECU
Up-date of MOF information on Web- Site by 2007. 40,000 various publications; Treasury News letter, brochures, books, reports etc produced yearly up to 2007. Distribution of publications to stakeholders local and foreign yearly by 2007. Periodic conferences, seminars and workshops held by 2007. Regular media scanning, monitoring & analysis to identify emerging issues Conducted and brief the MOF top Management accordingly and prepare rapid responses by 2007.
Website in place with updated information
IECU
43.
Disseminate information on achievement made by MoF and the Financial Sector by 70% by 2007.
IECU
44.
To carry out assessment of stakeholder needs and their perception of MOF policies and actions by 2009.
Devise an effective feedback mechanism from MOF stakeholders on policies and services by June 2006.
Quality advice provided to MOF policy analyst and the top Management.
IECU
______________________________________________________________________
82
No.
Strategies
Service Delivery Target Monitor annually using methodical survey methods, the perception of stakeholders on MOF policies and service delivery. Carry out pre-assessment of various policy options through systematic focus group monitoring exercises. Identify priority issues for research by December 2004.
Output Indicators Media effectively managed and relationship maintained. Effective mechanism for MOF stakeholders feedback in place and delivering by 2007. Research Carried Out
Responsible
45.
To build the capacity of the IEC Unit.
Carry out communications research and analysis, and provide quality advice to MOF policy analysts and top Management. - Training needs assessment of the Unit carried out. Training of the IEC Unit staff to equip them with the required skills
IECU
TNA carried out by December 2004
TNA Report
DAP/IECU
All IECU officers trained in long term and short courses, locally and abroad in economic and financial journalism, communications management, report, & speech writing skills, presentation skills, etc. by 2007
Number of staff trained against the target
DAP/IECU
______________________________________________________________________
83

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THE UNITED REPUBLIC OF TANZANIA

Medium Term Strategic Plan 2004 - 2009

G.S. Mgonja PERMANENT SECRETARY

SITUATION ANALYSIS Recent History

978.9 1045.7 902.5 1073.8

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

Foreign Direct Investment

Major Economic Indicators

776.4 902.5 1,073.8

1,368 1,560.3 1,511 -498.6 974.2 -480.0 -251

1,157 1,529 1,922.4 7648.2

7,669. 7,624.8 7,464.0 7,268 7 16.2 16.2 12.8 7.7

Origins of GDP 2002 Agriculture Mining Manufacturing Construction Services

GDP at factor cost including others Source: Economic Survey, 2002

100 GDP at market prices.

Number of Tourists and Foreign Exchange Earnings: 1990 - 2002

2002 575000 Source: Economic Survey, 2002

Source: BOT Monthly Economic Review, December 2003/January 2004

Money and Prices

7. THA Source: Presidents Office, Planning and Privatisation, 2003

Action to Reduce Poverty

Taxation Table 11:

The principal taxes in Tanzania are as follows:

Source: Tanzania Investment Guide, 2002 and beyond

Mandate of the Ministry

Recent Initiatives and Achievements

Reform in the Government Pension Scheme

Information Technology Initiatives

Clarity and consistency of policies Improved partnerships Abide by terms of agreements

Areas for Improvement

Criterion Part transparency 2a 2a 2a Focused budget

Areas for Improvement

Areas for Improvement

Partnerships and Resources 4a: External partnerships are managed

Partnerships and Resources 4e: Information and knowledge are managed

Criterion Part achieved 4e 4e

Areas for Improvement

Processes 5e: Customer relationships are managed and enhanced

Strengths Improved dissemination of information

Areas for Improvement

Customer Results 6a: Perception Measures 6a 6a 6a 6a

Customer Results 6b: Performance Indicators 6b 6b 6b

Customer Results 6b: Performance Indicators 6b 6b 6b

Key Performance Results 9b: Performance Indicators 9b 9b 9b

(b) Leaders motivate, support and recognize the organizations people

Criterion 2 Policy and Strategy

4 Partnership and Resources

(a) Technology is managed

(b) Information and knowledge are managed

(a) Perception Measures

Criterion 7 People Results

Sub-criterion (a) Perception Measures

9. Key Performance Results

(a) Performance Indicators

VISION, MISSION AND VALUES Vision

Strategic Objective 11:

Strategic Objective 14:

Strategic Objective 15:

Strategic Objective 18:

Strategic Objective 22:

Strategic Objective 24:

Strategic Objective 25:

Strategic Objective 27:

All staff sensitized on gender awareness by 2005.