The Annual Review of General Budget Support (GBS) for 2008 was held from 24th – 27th November 2008 at the Blue Pearl Hotel, Ubungo Plaza; concluding the dialogue organized around Cluster Working Group meetings that was launched in April 2008. The GBS Annual Review assesses the Government and Development Partners‟ performance against the jointly agreed Partnership Framework Memorandum (PFM) signed in 2006, in particular the Government's commitment to promote high economic growth and reduce poverty through implementation of MKUKUTA, and the Development Partners‟ commitment to provide financial assistance to that end. The assessment also includes the jointly agreed Performance Assessment Framework (PAF Matrix), which draws indicators from the MKUKUTA and other national processes.

The Annual Review facilitated completion of the 2008 PAF Matrix assessments which led to the selection of Key Issues that were discussed at the Review meeting. An assessment of the implementation of the PAF for 2008 showed, that 19 out of 24 sector and thematic reviews were assessed as satisfactory and that 17 out of 31 Temporary Process Actions (TPAs) had been achieved. In addition, 15 out of the 26 annual targets for outcome indicators assessed in 2008 were assessed to be on track. The assessment of the PAF matrix concluded that Tanzania has made good progress in achieving its education and health targets, although there is room for improvement in the quality of education and health services. The Review also noted positive recent progress in tackling cases of grand corruption. However, progress on agriculture, energy, infrastructure, the investment climate, and the core reforms (PFMRP, LGRP and LSRP) has not been sufficient, and the Household Budget Survey 2007 gave clear indications that there has not been a significant reduction in income poverty over the past six years. The business climate – for the agriculture sector and for businesses more generally – was singled out as an area where more urgent and determined reform was needed. Lack of progress on public financial management reform was also a very significant concern for Development Partners and Government launched the next phase of its PFM Reform Programme during the Annual Review.