The International Monetray Fund has released an advisory note on Tanzania's Poverty Reduction Strategy paper (MKUKUTA II) as background documentation for the periodic consultation with the country. The advisory note reviews MKUKUTA II (2010/11-2014/15) which builds on MKUKUTA I to provide an operational framework for achieving the Millenium development Goals (MDGs) and Tanzania's Development Vision 2025, which aims to transform Tanzania into a middle income country.
The note outlines key risks for MKUKUTA II implementation which include insufficient financing, delays with meaningful structural reforms and unclear prioritization. The advisory note provides analysis and advice to strengthen MKUKUTA II to help ensure its effective implementation. It recommends special attention be given to improve spending efficiency and mobilize domestic revenues by reducing exemptions and other measures to expand the tax base; carry out reforms to improve the investment climate; speed up public financial management reforms; and improve prioritization in implementation of MKUKUTA II.
The full report is available on the IMF website. Click here