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Tanzania - Implementation of a Formula-based System of Block Grants

 

Preparing for and Implementing A System Of Formula-Based Blocks Grants To Local Government Authorities In Tanzania

Client:

Tanzania Local Government Reform Programme

Funding Source:

DANIDA

Type of Grant:

Research

Period Funded:

September 2001 - January 2002

Location:

Dar es Salaam, Tanzania

Amount:

-

Project Summary

Project Publications

Project Team

 

Project Summary:

The study Developing a System of Intergovernmental Grants in Tanzania has been successful in designing a formula-based system of intergovernmental grants that has garnered wide support in policy circles in Tanzania. In fact, if implemented as designed, Tanzania’s system of intergovernmental fiscal relations would move quickly to become one of the most advanced in Africa.

Some of the main challenges to the preparation and introduction a system of formula-based grants arose -as expected- during the implementation phase. Although there was a clear desire to keep the momentum going in the introduction of the block grant system, it was deemed unrealistic to expect immediate implementation of a formula-based approach. With a target implementation date of July 2004, the preparations for the formula-based approach required a series of highly structured activities in order to resolve many of the unresolved implementation issues.

Since the implementation phase is so closely intertwined with the policy design of the system, it is hard to separate policy design issues from implementation issues. As a result, the Government of Tanzania requested continued involvement by the Andrew Young School of Policy Studies during the process of preparing for and implementing the proposed system of formula-based intergovernmental grants. As part of the technical support under this modality, a series of policy-driven Technical Notes on Local Government Finance Reform in Tanzania (Technical Notes 2003 / Technical Notes 2005 ) were prepared for the Local Government Reform Programme (LGRP) by the Andrew Young School of Policy Studies at Georgia State University (GSU). The notes in this series aimed to address or clarify specific challenges related to the implementation of a system of formula-based grants in Tanzania.

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Project Publications:

 

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Project Team:


 Jamie Boex - Team Leader, Tax Policy Expert


Generosa Kagaruki-Kakoti - Tax Policy Expert


 Jorge Martinez-Vazquez - Tax Policy Expert


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