Transcript Joint Assistance Strategy

General Budget Support
Presentation by the Ministry of Finance
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Presentation outline
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2.
3.
4.
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Composition of ODA
Advantages of GBS over other aid
modalities
JAST principles on ODA and the role of
NGOs
Conclusion
1. Composition of official development
assistance (ODA)
 External resources are an important element of the
budget
 ODA to the Government is delivered through three
main instruments – GBS, Basket Funds, and Project
Funds
 Aid Management in Tanzania is guided by the Joint
assistance for Tanzania as a step towards National
aid effectiveness agenda
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4. Tanzania’s Composition of Aid

GBS – Is the GoT Preferred Aid Delivery Modality –
Why?
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It provides financial assistance to the overall national
budget (Government Consolidated Fund) in line with the
(Constitution) Laws of the country.
It is allocated by the Government according to its legal
and budgetary process and hence subjected to the
same degree of contestability as domestic resources
Composition of ODA to the Government by
modality in the national budget estimates
FY
2002/03
FY
2003/04
FY
2004/05
FY
2005/06
FY
2006/07
GBS
30%
38%
34%
38%
42%
Basket
Funds
16%
18%
21%
20%
16%
Project
Funds
54%
44%
45%
42%
42%
TYPE
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4. Tanzania’s Composition of Aid,
Cont.
GBS – Why?
I.
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It strengthens the Parliamentary role for decision making in
resource allocation as more external resources will have to
adhere to the national (Parliamentary) approval process thus,
contributing to shifting Government accountability from donors
to citizens through the Parliament
It strengthens national public financial management and
accountability systems by making use of existing structures and
systems
It increases the predictability of external resource availability
and disbursements by basing funding decisions on outcomes of
a joint review Performance Assessment Framework, which
takes place prior to the FY in which disbursements are to be
made
4. Tanzania’s Composition of Aid,
Cont.
GBS – Why?
I.

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It is the only modality that fully complies with the country’s legal
budgetary framework, i.e. the Constitution of the URT, Chapter 7,
Articles 135 and 136, which require that all revenues/finances
must be deposited in the Government’s Consolidated Fund and
appropriated by the Act of Parliament – Others use parallel
systems
It increases the proportion of external resources subjected to the
national budget process thereby increasing national ownership,
transparency and domestic accountability
It strengthens the national budget process by limiting the access
of Government agencies to extra budgetary finance by
emphasizing national budget as the main framework for
identifying priorities and programming resource use
4. Tanzania’s Composition of Aid,
Cont.
I.
GBS – Why?

It contributes to transaction cost reduction,
development partners harmonization and the
alignment process through the adoption of single
process for reviews, assessment, dialogue, etc.
It is consistent with the Tanzania Assistance Strategy
(2002), Monterrey Consensus (2002), Rome
Declaration (2003), Marrakech Memorandum (2004),
Paris Declaration (2005) and Joint Assistance Strategy
for Tanzania (2006) commitments on aid effectiveness.
It provides space for the Government to manage her
business within the agreed priorities
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2. Advantages of GBS over other aid
modalities
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GBS is the Government’s preferred aid modality
GBS allows Government full ownership over resource
allocation in line with national priorities for
implementing MKUKUTA
GBS is fully integrated in national budget and
accountability system – is subjected to the same
degree of scrutiny as domestic resources
This allows for greater transparency and enhanced
domestic accountability and helps to strengthen the
national budget process
3. JAST principles on ODA and the role
of NGOs
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JAST promotes increasing shift to GBS for delivering
aid to the Government
JAST spells out clear criteria for using basket and
project funds to deliver ODA to the Government in
order to allow for Government ownership, alignment
of DP support to Government structures, systems
and processes, and the reduction of transaction
costs
JAST also specifies that project funding will continue
to be used by DPs to support non-state actors
directly
3. JAST principles on ODA and the role
of NGOs
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JAST recognizes independence of NGOs in
managing their resources
JAST however also calls for greater transparency
and accountability of NGOs (in line with existing
regulations, e.g. NGO Act 2002)
4. Conclusion
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NGOs and non-state actors in general are important
partners in implementing the national development
agenda (MKUKUTA/MKUZA)
Government acknowledges that they will continue to
directly receive support from DPs
Government and DPs also consider non-state actor
contributions to dialogue around GBS as useful –
have for first time invited non-state actors to the GBS
Review 2006 and agreed to consider ways of
increasing and enhancing non-state actor
involvement in the future