ABSTRACT
This chapter explains why public budgeting in Tanzania does not effectively address issues related to access to quality services. It covers introductory remarks; conceptual issues; guiding principles for resource allocation and its dynamics; budgeting dynamics; and service delivery. The chapter compares approved against actual budgets with regard to service delivery. It focuses on challenges affecting fiscal management such as revenue collection and allocation and how they relate to the current state of service delivery. It describes that the observed trend of domestic revenues, including that from local government authorities (LGAs), has been going down. The chapter shows that the government has been borrowing too much from internal institutions such as social security, to finance recurrent expenditure. It has to implement a zero-borrowing policy from specific funds. In addition, ministries, departments, and agencies (MDAs) and LGAs must operate in a quasi-commercial manner in order to be creative and innovative in revenue collection and uses.
