Local government finances and financial management in Tanzania

This report provides baseline data on local government finance and financial management in six councils in Tanzania: Bagamoyo District Council, Ilala Municipal Council, Iringa DC, Kilosa DC, Moshi DC, and Mwanza City Council. The data cover the period 2000-2003 and represent a reference point for the situation in the six councils with respect to various dimensions of local government finance and financial management in this period. The following themes are covered by the study: (a) the degree of fiscal autonomy; (b) methods of revenue collection; (c) financial management, including budgeting, accounting and auditing; (d) transparency in fiscal and financial affairs; and (e) tax compliance and fiscal corruption. In essence, a small, common database has been developed for all the case councils.Public finance Local government Financial management Tanzania

Outsourcing revenue collection to private agents: Experiences from local authorities in Tanzania

This paper examines recent experiences with outsourced revenue collection to private agents in local government authorities in Tanzania. Based on evidence from four urban and three rural councils, the study examines how systems of privatised tax collection perform with respect to revenue generation, administration, and accountability. The selected councils are Dar es Salaam and Mwanza City Councils, Ilala and Kinondoni Municipal Councils, and Kilosa, Kisarawe and Moshi district councils. The study concludes that outsourcing offers no ‘quick-fix' neither to increasing local government revenues nor to reducing tax administrative problems. While collection has increased and become more predictable in some councils which have outsourced revenue collection, others have experienced substantial problems with corruption and exceptionally high profit margins for the private agents at the expense of accomplishing a reasonable return to the respective local government authorities. However, when appropriately managed and monitored, outsourced revenue collection may establish a foundation for more effective and efficient local government revenue administration

Changes in Citizens' Perceptions of the Local Taxation System in Tanzania

This brief examines changes in citizens' perceptions of local taxation over time in Tanzania based on survey data from 2003 and 2006. It investigates why people do or do not pay taxes, their perceptions of misuse of tax revenue, and their views on how to address the problems. The brief concludes that citizens' perceptions can valuably inform policy to improve the local tax system. Most importantly, improved tax compliance is dependent upon citizens perceiving that their local government is trustworthy, and that taxes are appropriately collected and used to provide public services. Administrative and legal measures are needed to ensure transparency in the collection and disbursement of tax revenues at the local level, to enable citizens to confidently report misuse of revenue, and to effectively address cases of corruption

Local government finances and financial management in Tanzania. Empirical evidence of trends 2000-2007

The paper examines local government capacity with respect to financial management and revenue enhancement, and analyses trends in financial accountability and efficiency for the period 2000–2006/07. The study covers six councils in Tanzania: Bagamoyo District Council, Ilala Municipal Council, Iringa DC, Kilosa DC, Moshi DC, and Mwanza City Council. Data were collected using a combination of quantitative and qualitative methods, including two rounds of a survey of citizens’ perceptions in the case councils in 2003 and 2006. The following themes are covered: (a) the degree of fiscal autonomy; (b) methods of revenue collection; (c) financial management, including budgeting, accounting and auditing; (d) transparency in fiscal and financial affairs; and (e) tax compliance and fiscal corruption. Based on the evidence collected, the study concludes that the process of decentralisation by devolution under the Local Government Reform Programme has contributed to improving local government capacity for financial management. However, the reforms have reduced the fiscal autonomy of local government authorities. The central government currently contributes to the bulk of local government revenues through transfers and still largely determines local budget priorities

Disparities in Citizens' Perceptions of Service Delivery by Local Government Authorities in Tanzania

The Local Government Reform Programme (LGRP) in Tanzania aims to restructure local government authorities so that they can respond more effectively to local priorities of service delivery in a sustainable manner. Various sector reform programmes complement the LGRP by focusing on specific sectors. What has been achieved by these reforms in recent years? Have there been any changes in the provision of basic services to the public? What factors may explain distinct improvements in service delivery? This brief compares citizens' perceptions of service delivery in key sectors by local authorities in 2003 and 2006, based on findings from two comprehensive surveys covering 1260 respondents in 42 localities across Tanzania. Overall, citizens perceive that there have been improvements over time in the general quality of public services. Primary and secondary education stand out as the services rated as satisfactory and improving by the majority of the citizens interviewed. Although the average data for the councils indicate that there have been improvements in health services in recent years, the progress is still slow, and the differences in service delivery both between and within councils are increasing. Access to clean water is a major problem mirrored in deep dissatisfaction by citizens. While some areas have experienced improvements in water supply through donor funded water supply schemes, much remains to be done in this sector. Although improved water supply is priority number one by citizens in many councils this is not reflected in the development plans of the local government councils; plans which to a large extent reflect central government priorities