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Plan and Budget Guidelines for 2012/13 in the Implementation Of THE UNITED REPUBLIC OF TANZANIA GUIDELINES FOR THE PREPARATION OF ANNUAL PLAN AND BUDGET FOR 2012/13 IN THE IMPLEMENTATION OF THE FIVE YEAR DEVELOPMENT PLAN 2011/12-2015/16 PART I & II Issued by: The President’s Office, Ministry of Finance, Planning Commission, P. O. Box 9111, P. O. Box 9242, DAR ES SALAAM. DAR ES SALAAM . February, 2012 TABLE OF CONTENTS LIST OF ABREVIATIONS ............................................................................................................................. IV PREAMBLE ............................................................................................................................................... VII CHAPTER ONE ............................................................................................................................................ 1 FIVE YEAR DEVELOPMENT PLAN: OBJECTIVES AND FOCUS ........................................................................... 1 Introduction .............................................................................................................................................. 1 Objective and Strategic Priority Focus ...................................................................................................... 2 IMPLEMENTATION OF THE FIVE YEAR DEVELOPMENT PLAN ........................................................................................ 6 CHAPTER TWO............................................................................................................................................ 7 MACROECONOMIC OUTLOOK AND ANNUAL DEVELOPMENT PLAN 2012/13 .............................................. 7 Introduction .............................................................................................................................................. 7 Global Economic Dynamics ...................................................................................................................... 7 Macroeconomic Assumptions and Outlook 2012-2015 ........................................................................... 8 Key Macroeconomic Assumptions ............................................................................................................ 9 Macroeconomic Projections and Policy Targets ..................................................................................... 10 Targets and Assumptions for key economic activities ............................................................................ 11 Review of FYDP I Performance in First Half of 2011/12 ......................................................................... 16 ANNUAL DEVELOPMENT PLAN FOR 2012/13 ....................................................................................................... 23 Planning Framework for Regional and Local Government Authorities .................................................. 32 Specific Priority Areas for Regional Administration and Local Government Authorities ........................ 33 CHAPTER THREE ....................................................................................................................................... 35 RESOURCE ENVELOPE AND EXPENDITURE FRAMEWORK ........................................................................... 35 FOR THE PERIOD 2012/13 – 2015/16 .......................................................................................................... 35 Introduction ............................................................................................................................................ 35 Resource Envelope.................................................................................................................................. 35 Domestic Revenue .................................................................................................................................. 35 Tax Revenue ........................................................................................................................................... 35 Non Tax Revenue .................................................................................................................................... 37 Foreign Resources .................................................................................................................................. 38 Domestic financing and Borrowing ........................................................................................................ 39 Government Guarantee ......................................................................................................................... 39 Private Sector and Public-Private Partnership (PPP) .............................................................................. 39 Expenditure Framework for Financial Year 2012/13 – 2015/16 ............................................................ 40 Source: Ministry of Finance .................................................................................................................... 42 Resources allocation by MDAs and RSs .................................................................................................. 42 Intergovernmental Fiscal Transfers ........................................................................................................ 43 Regional integration ............................................................................................................................... 43 Resource Allocation to RSs and LGAs ..................................................................................................... 43 LGAs’ Own Source Revenues .................................................................................................................. 44 Specific Sectoral Guidance for Resource Allocation to LGAs .................................................................. 46 General Budgetary Guidelines ................................................................................................................ 54 CHAPTER FOUR ........................................................................................................................................ 55 THE PERFORMANCE MONITORING, EVALUATION AND REPORTING .......................................................... 55 Introduction ............................................................................................................................................ 55 ii Institutional responsibilities on M&E ..................................................................................................... 55 M&E Focus in 2012/13 ........................................................................................................................... 56 Specific Instructions to MDAs, RSs and LGAs .......................................................................................... 57 CHAPTER FIVE........................................................................................................................................... 59 SPECIFIC INSTRUCTIONS FOR THE PREPARATION AND IMPLEMENTATION OF PLAN AND BUDGET ........... 59 Introduction ............................................................................................................................................ 59 Roles of Accounting Officers in Planning and Execution ........................................................................ 59 The Roles of Budget Committees ........................................................................................................... 60 Preparation of Revenue Estimates ......................................................................................................... 61 Preparation of Personal Emoluments Budget ........................................................................................ 62 Implementation of Institutional Plans and Budgets ............................................................................... 63 Expenditure Control and Cost Reduction ................................................................................................ 64 Specific areas of focus for 2012/13 ........................................................................................................ 66 Regional Integration ............................................................................................................................... 69 General Instructions for RSs and LGAs ................................................................................................... 70 PART I - ANNEX: DETAILED DESCRIPTION OF STRATEGIC PROJECTS OF THE FIVE YEAR DEVELOPMENT PLAN ........................................................................................................................................................ 72 ENERGY SECTOR .............................................................................................................................................. 72 TRANSPORT SECTOR ......................................................................................................................................... 74 COMMUNICATION SECTOR ................................................................................................................................ 75 INDUSTRY ....................................................................................................................................................... 76 EDUCATION SECTOR ......................................................................................................................................... 78 PART II BUDGET SUBMISSION,
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