General Budget Support
Sweden provides General Budget Support (GBS) to support the implementation of Tanzania’s strategy for growth and poverty reduction.
The GBS is intended to contribute to poverty reduction through the implementation of the Tanzania’s second National Strategy for Growth and Poverty Reduction (the so called MKUKUTA 2) by providing predictable financial resources to government expenditures. GBS is hence a non-earmarked support to the government budget, allowing the government to increase overall spending e.g. on social sectors. The objectives of the GBS are, in line with the objectives of the MKUKUTA 2:
- Economic growth and reduction of income poverty;
- Improvement in quality of life and social well-being; and
- Governance and accountability
GBS is Tanzania´s preferred aid modality, with full ownership by the Government of Tanzania in prioritisation of development spending. GBS is over time expected to strengthen the national Tanzanian budget process and accountability systems.
Swedish support and follow-up
The Swedish GBS contribution has varied between 315 MSEK/year and 420 MSEK/year during the last five years. This is about half of the annual development cooperation allocation for Tanzania. The commitment for Tanzania´s fiscal year 2014/15 was 425 MSEK, of which 275 MSEK has been disbursed.
To follow-up on the GBS and create a good basis for dialogue, budget support donors have agreed with the government on a number of specific outcomes to be achieved and key policy actions to be undertaken. A coherent process for follow-up between the Government of Tanzania and the donors is in place. Within this framework the Tanzanian government and the Development Partners have together agreed to continually examine progress. Particular focus has been placed on financial management, sound macro-economic condition, good governance and counteracting corruption and on ensuring that the country’s poor benefit in an equitable way in line with the Mkukuta 2.