An Overview of Local Government Finance Reform in Tanzania

Abstract

In recent years, developing countries all around the world have been embarking on ambitious decentralization programs. While the impetus for these reforms has come from different sources, in many countries the emphasis has been on greater economic efficiency and growth, and even the need to fight poverty by providing poor rural households with access to basic services. In this light, the Government of Tanzania has been actively pursuing the reform of the role that local governments play in the public sector and the manner in which local government activities are financed. Although local government authorities in Tanzania have played a substantive role in the delivery of key government services since the mid-1980s (including primary education and basic health care), the central government has traditionally maintained tight control over most resources provided to local governments.