Illicit Financial Flows (IFFs) represent a significant challenge to Tanzania’s economic stability, depriving the country of substantial revenue that could support critical sectors such as agriculture. This policy brief examines the impact of IFFs on Tanzania’s national budget, focusing on the agriculture sector. It highlights how funds lost through IFFs could bridge the agriculture budget deficit and provides key recommendations to address the issue.

Illicit Financial Flows (IFFs) represent a significant challenge to Tanzania’s economic stability, depriving the country of substantial revenue that could support critical sectors such as agriculture. This policy brief examines the impact of IFFs on Tanzania’s national budget, focusing on the agriculture sector. It highlights how funds lost through IFFs could bridge the agriculture budget deficit and provides key recommendations to address the issue.

The Tanzanian national budget for the fiscal year is TZS 49,365.7 billion and is structured across various sectors aimed at bolstering national development and ensuring effective governance. A significant portion of the budget is allocated to sectors such as Defence, Law, and Public Safety (5,493.5 billion TZS), reflecting a commitment to maintaining security and upholding the rule of law.

The Open Budget Survey is the world’s only comparative, independent, and regular assessment of transparency, oversight and participation in national budgets.

This locally-led process was conducted with in-country researchers, peer reviewers, and government reviewers who completed 30,000 indicators across all surveyed countries, assessing 672 publicly available budget documents and 299 participation mechanisms.

Considering high demand for services contributed by high population increase and the decline of external budget support, there is a need to opt for other ways of financing the water sector. Involvement of Private sector and Financial Institutions should be taken as an alternative window to fill the sector financial gap.

The brief examines the Health Sector Budget for 2023/2024 and considers the pattern of budget allocation in comparison to the country’s Health Sector Strategic Plan V (2020/2021 – 2025/2026). The analysis also discusses the trends in the overall share of the health sector budget for development and recurrent allocation. In this budget brief Policy Forum and TGNP calls upon the government to prioritize and continue investing in physical health infrastructure and the development of human resources.

The industry and trade sector is an important instrument for any country to achieve its sustainable growth.

The education sector budget consists of funding across education in Tanzania. The Majority of allocation is under the Ministry of Education, Science & Technology (MoEST) as well as the Regional Administrative Secretariat (RAS) votes. MoEST covers quality assurance and policy with regards to education, as well as implementation to do with Higher Education, Vocational Education & Training as well as Science & Technology.

This post budget analysis provides an overview of agriculture sector performance, previous budgets implementations, interventions by governments and other actors (including private sector, civil society, and donor community), policy issues that need reforms, challenges in budget implementation, and the recommendations for the government in the implementation of year 2023/24 budget. The recommendations intend to influence both government and private sector investments to the sector and promote the transformation through growth and income generation and employment creation.