MINISTRY OF AGRICULTURE FOOD SECURITY AND COOPERATIVES General Budget Support (GBS) Annual Review, 24-27 November 2008 Dar es Salaam. Accelerating Agricultural Transformation as a Key Instrument for Reducing Rural Poverty and Enhancing Food Security. Introduction.
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Accelerating Agricultural Transformation as a Key Instrument for Reducing Rural Poverty and Enhancing Food Security
Agriculture contributes significantly to the overall economy in Tanzania but it had limited impact on reducing poverty most of which resides in rural areas.
In order to improve agricultural growth and reduce poverty, the Government formulated an Agricultural Sector Development Programme which is implemented using A Sector Wide Approach. ASDP has two components:
Component 1: Local Level Support (75% of programme resources)
Component 2: National Level Support (25% of programme resources)
Progress on implementation of ASDP as per ASDP Joint Implementation Review (AJIR) done in October 2008, indicated that the programme implementation is on track despite several challenges, which have been encountered.
Despite priority on agricultural growth as a driver for economic growth and poverty reduction public spending has remained relatively low.
Expenditure for core public goods (research, extension, training, policy and planning, institutional and regulatory agencies) remains critically low and sometimes decreased.
Private Sector investment
Issues for Consideration
Issues for Consideration
Local taxes (cess) regimes and levies. The existing excessive taxation, both direct and indirect taxes is a disincentive to the growth of agricultural markets;
Improving ASDP Implementation
Improve LGA capacity for planning and implementation;
Increased budget allocation for community irrigation projects;
Complete and initiate implementation of irrigation capacity development plan and explore mechanisms for appropriate PPP;
Finalize and initiate implementation of the national irrigation policy and strategy;
Capacity of private sector in the districts need to be improved.
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