Local government finances and financial management in Tanzania: observations from six councils, 2000-2003

Abstract

The major focus of the Formative Process Research Programme is to observe changes in local authorities in the provision of basic services to the public.Moreover, the research aims to analyse changes in local authorities' capacity for financial management and revenue enhancement, and changes relating to governance, including accountability and responsiveness of the local government.This report is an overview of local government finances and financial management in six councils in Tanzania: Bagamoyo District Council, Ilala Municipal Council, Iringa District Council, Kilosa District Council, Moshi District Council and Mwanza City Council.The data cover the period 2000-2003 and provide a reference point for the situation in the six councils with respect to various dimensions of local government finances and financial management in this period.The following themes are covered by the study: (a) the degree of fiscal autonomy; (b) methods of revenue collection; (c) financial management, including budgeting, accounting and auditing; (d) transparency in fiscal and financial affairs; and (e) tax compliance and fiscal corruption.In essence, a small, common database is developed for all the case councils.