General Budget Support DPG Induction 2009 August 25, 2009 – Dar es Salaam

1. General Budget SupportDPG Induction 2009August 25, 2009 – Dar es Salaam Poverty Reduction Budget Support Group Organization and Work Programme Presentation by Sipho S. Moyo, Resident Representative of the African Development Bank & Chair of the PRBS Group in Tanzania

2. Presentation outline • Brief on General Budget Support (GBS) • Poverty Reduction Budget Support (PRBS) Group • What is it? • Leadership • Membership • Structure • Coordination • Work Programme • Main activities/Outputs DPG Induction

3. 1. Brief on General Budget Support • GBS: - provides external resources directly to the national budget for national priorities; - passes directly to the Exchequer of the recipient country; - usesgovernment delivery, management & decision making systems; - relies on national/ domestic accountability mechanisms DPG Induction

4. 1. Brief on General Budget Support, Cont. • GBS aims at, amongst others: • Supporting the financing of MKUKUTA/MKUZA • Enhancing ownership & transparency of external resources • Strengthening of the budget management process • Reinforcing parliamentary oversight role/domestic accountability over external resources • In Tanzania GBS is provided by 14 DPs. Last fiscal year (FY08/09), GBS amounted toTShs 875,061 million (approx. USD 700m) which was about 36% of the external resources and about 12% of the Government budget. The commitment for FY09/10 amounts to TShs 977,982 million. DPG Induction

5. 2. The PRBS Group – What is it? • The PRBS Group = group of bi- and multilateral DPs providing GBS to URT, • The overall objective of the group is to support Tanzania’s development/growth and poverty reduction agenda through GBS, • The group aims at amongst others: • Providing financial resources for promoting growth and poverty reduction. • Ensuring regular, open, and fruitful dialogue on the implementation of the Partnership Framework Memorandum (PFM) commitments. • Ensuring coherency and coordination of PRBS partners’ positions and activities with respect to the implementation of PFM. DPG Induction

6. 2. PRBS Group – Leadership & Membership • PRBS group is lead by a rotating Troika+ system comprising of: incoming, current and outgoing Chair, the World Bank as a permanent member and the IMF as an associate. • Commitment to Troika+ is for 3 years • PRBS Group comprises of: AfDB, Canada, Denmark, European Commission, Finland, Germany, Ireland, Japan, Netherlands, Norway, Sweden, Switzerland, United Kingdom, and The World Bank • The structure comprises three levels: Heads of Mission (HoM); Heads of Development Cooperation (HoC) and the Coordination Group (CG) DPG Induction

7. 2. PRBS Group – Structure & Coordination • HoM meet if there is an urgent, high-level, political matter to discuss (more on an ad hoc basis) • HoC meet regularly (1x to 2x per month) and are responsible for amongst others: • Steering the decision-making on the strategic direction and developments of the GBS instrument, • Forging a consensus among PRBS partners on policy priorities and progress on reforms before engaging with the GoT and other stakeholders with a common PRBS position, • Conduct high level policy dialogue with GoT (and other stakeholders) on the GBS process DPG Induction

8. 2. PRBS Group – Structure and Coordination, Cont • The CG group is composed of one technical member (Economist or other designated member) from each agency providing GBS • The CG meets regularly (1x/2x per month) and is responsible for amongst others: • Coordination & well functioning of the PRBS facility, • Providing inputs and technical support to HoC on all matters relating to PRBS cooperation, • Providing a link between the PRBS group and ongoing cluster working groups and sector/thematic working groups DPG Induction

9. 2. PRBS Group – Structure and Coordination, Cont • The (permanent) PRBS secretariat (Elikana and Paulina): • Supports the PRBS group in the implementation of the Partnership Framework Memorandum (PFM), Performance Assessment Framework (PAF), GBS Annual Review and GBS work programme, and other relevant GBS issues; • Acts as a focal point for coordinating and administering the activities and processes of the PRBS group; • Works jointly with the GoT counterpart i.e. GBS Secretariat in facilitating a smooth GBS functioning and dialogue throughout the year DPG Induction

10. 3. PRBS Group Work Programme • Main activities/ output include: • GBS Annual Review Cycle: The cycle allows GBS partners and GoT to assess performance against commitments in the PFM and the PAF through regular interactions with GoT in sector and cluster working groups and the joint GBS secretariat meetings, • PRBS group monitors and participates in other national processes (i.e. sector reviews, PER, MKUKUTA/MKUZA/PPW, etc), • The Group produces joint positions and communications relating to the GBS instrument and issues of national policy, DPG Induction

11. 3. PRBS Group Work Programme • Main activities/ output include: • The Group interacts with Parliament, media and CSO’s on matters related to GBS, • The cycle culminates into the Annual National Policy Dialogue Event, 18-25 November 2009, • Within 3 weeks of the conclusion of the annual review, each GBS partner will communicate its planned contributions for the next three years to the Government; • Within 6 weeks following receipt of the final report of the annual review, each GBS partner will confirm its disbursement schedule for the next financial year to the Government. DPG Induction

12. THANK YOU VERY MUCH FOR YOUR ATTENTION