[{"bbox": [144, 132, 1084, 187], "category": "Text", "text": "mobilization. The country's decent level of reserves at 4.5 months of imports provides a buffer to further shocks."}, {"bbox": [144, 203, 1085, 492], "category": "Text", "text": "The external debt composition recorded a shift from commercial to concessional borrowing. While before the pandemic, external commercial borrowing was on the rise to finance infrastructure projects (i.e. the SGR in FY 2021/22), the challenging external financing conditions led the Government to shift back to concessional financing through multilateral and bilateral sources. In 2021/22 the share of commercial borrowing as a share of new disbursement fell to 38% from 61% the year before. In June 2022, 61% of external public debt was from multilateral sources largely on concessional terms, 11% was from bilateral sources and 28% was from commercial banks and export credit agencies. Domestic debt remains small overall, but increased from 29.9% to 33% as the government continues to issue bonds to finance the deficit, development projects and incurred costs on overdraft."}, {"bbox": [144, 520, 1084, 579], "category": "Text", "text": "**Based on this assessment, it is concluded that Tanzania has a credible stability-oriented macro-economic policy.**"}, {"bbox": [218, 649, 672, 678], "category": "Section-header", "text": "### 1.6.3 Public Financial Management (PFM)"}, {"bbox": [144, 690, 1084, 745], "category": "Text", "text": "Tanzania continues to make progress in the implementation of PFM reforms and achievement of PFM outcomes."}, {"bbox": [144, 776, 1085, 952], "category": "Text", "text": "Building on the Government's Five Year Development Plan III, the PFM reform strategic plan provides the main policy framework. The PFM reform strategic plan V ended in June 2022 and MoFP launched a new PFM reform strategic plan VI in November 2022. The sixth strategic plan spans a five year period from 2022/23 to 2026/27 and will be co-funded by the Government and development partners. This document will be the main frame of reference for this budget support operation²⁹."}, {"bbox": [144, 968, 1086, 1405], "category": "Text", "text": "The 2022 PEFA³⁰ confirms a positive track record in Tanzania over the medium-term, with an impressive net improvement in 9 scores (improvement in 12, deterioration in 3) across 4 out of 7 thematic areas. Tanzania improved its score for tracking of Central Government revenues and expenditures outside financial reports. GoT is better capable of tracking non-tax revenues through new Government systems, and reduced unreported expenditure from an estimated 4% in 2017 to an estimated 0.8% in 2019/20. The score for asset management improved stands at B+ with A for fiscal asset monitoring and transparency of asset disposal. This is on account of the introduced Asset Management Information System and annual consolidated report on the overall performance of financial assets. The report contains information on the transfer and/or disposal of financial assets of public entities and more details on asset acquisition and disposal and transfer in the annual statements. The score for fiscal strategy (PI-15) improved from D+ to B. The budget speech now reports on the fiscal impact of expenditure measures and the budget guidelines report explicit, time-based quantitative fiscal targets including for the fiscal deficit. Budget documentation also reports more comprehensively on the divergences from previous fiscal targets."}, {"bbox": [144, 1418, 1085, 1530], "category": "Text", "text": "Progress in implementation of supported sector policies – Public Finance Management Reform Programme IV, Corporate Plan 6 and Financial Sector Development Master Plan can be considered very satisfactory, with a clear buy in from the Government and visible achievements."}, {"bbox": [144, 1562, 953, 1586], "category": "Footnote", "text": "²⁹ This budget support programme monitors PFM reforms in Tanzania Mainland, not in Zanzibar."}, {"bbox": [144, 1586, 1082, 1636], "category": "Footnote", "text": "³⁰ Public Expenditure & Financial Accountability (PEFA) assessment Tanzania (september 2022): https://www.pefa.org/node/5062"}, {"bbox": [603, 1673, 629, 1697], "category": "Page-footer", "text": "12"}]