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| EU Ambassador to Tanzania Filiberto Sebregondi. |
This payment is made in the framework of the EU general budget support, through the so-called Millennium Development Goal (MDG) Contract, which is to contribute to Tanzania’s sustainable growth and reduction of poverty by putting into effect the MKUKUTA strategy.
The EU, together with other Development Partners, is supporting the implementation by the government of the Fifth National Development Plan, MKUKUTA and the recently launched Big Results Now (BRN) initiative.
Budget support is one of the modalities used to strengthen the capacity of the Government to deliver results and improve the lives of Tanzanian citizens, by reducing poverty and inequality.
EU Ambassador to Tanzania Filiberto Sebregondi said: “I am satisfied that budget support from the EU and other Development Partners could be released in time to finance the vital public expenditure planned for the current fiscal year."
According to him, the delay that occurred was caused by concerns on the sound management of public money.
“However, the commitment to good governance and the fight against corruption is a shared principle between Development Partners and the government and the latter has demonstrated to take it very seriously," he said.
The EU noted that the last budget support annual review showed positive achievements in health, such as a significant increase of numbers of nurse and midwife ratios and number of persons receiving ARV combined treatment, and also in better and decentralized Natural Resource Management.
He, however, added that there was need to step up efforts to reduce the number of people living in poverty, especially in rural areas and to make sure that all Tanzanians enjoy equal access to quality basic services.
The disbursement follows the recent decision by budget support Development Partners to resume disbursements before the end of the current financial year.
The majority of these payments had so far been withheld pending the developments on the IPTL case. EU said it welcomed measures the Government of Tanzania and all relevant institutions have taken to handle the issue.
It noted that the public debate and the actions that have followed indicate that the country’s accountability system over public funds worked properly.
At the same time, the case has pointed to underlying risks of corruption in the management of public funds. The EU welcomes the Government’s confirmation that these need to be addressed in order to avoid similar cases from happening and appreciates the dialogue engaged with the Government of Tanzania in this direction.
During the period from 2007/08 to 2013/14, Budget Support operations from Donor partners including the European Union amounted to almost US$ 5 billion -- an average annual disbursement of US$ 703 million for Tanzania.
Budget Support means that Development Partners (DPs) provide money that has not been earmarked to the Treasury to support Tanzania’s own development planning and implementation through the budget.
The Government of Tanzania decides on the allocation of funds in the budget, guided by national policies, such as the National strategy for Growth and Reduction of Poverty, MKUKUTA II and Parliament then approves the national budget.
Development Partners who give Budget Support are currently Canada, Denmark, Finland, Germany, Ireland, Japan, Sweden, UK, African Development Bank, European Commission and World Bank.
The cooperation between the government and the Budget Support partners is defined in a Partnership Framework Memorandum (PFM) signed in 2011, which sets out the principles and the terms for the Budget Support partnership.
Among them a shared underlying principle is about Good Governance, accountability of the government to the citizenry, and integrity in public life, including the active fight against corruption in accordance with the laws of the United Republic of Tanzania.
Budget Support funds have allowed the government to maintain a high level of development spending throughout the period, without increasing domestic borrowing, contributing to a sustained level of public investment and a fast recovery from the global financial crisis.
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