THE UNITED REPUBLIC OF TANZANIA MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
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1 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF FINANCE AND ECONOMIC AFFAIRS CLOSING STATEMENT BY: THE MINISTER FOR FINANCE AND ECONOMIC AFFAIRS, HON. MUSTAFA HAIDI MKULO (MP), AT THE CLOSE OF THE 2009 ANNUAL NATIONAL POLICY DIALOGUE (MKUKUTA/PER/GBS), 25 TH NOVEMBER 2009 Hon. Ministers; Hon. Regional Commissioners; Hon. Chairs of Parliamentary Committees; Hon. District Commissioners; Permanent Secretaries; Regional Administrative Secretaries; Excellencies Ambassadors and High Commissioners; Representatives of the Civil Society; Members of the Media; Invited Guests; Ladies and Gentlemen: It is with great pleasure that I take this opportunity to officially close this Annual National Policy Dialogue event. I would again like to thank you all for your open and active participation; the meeting has indeed been a very productive and successful one. This has been made possible due to the high level commitment and participation by the Government and Development Partners, as well as 1
2 Non State Actors. Special thanks go to those who in one way or another made the event successful. The collaborative effort by the Permanent Secretary, Ministry of Finance and Economic Affairs and other Permanent Secretaries, DPG Co Chair Mr. Pieter Dorst, Chair of the Development Partners-PRBS group and Resident representative of the African Development Bank, Dr. Sipho Moyo and her team, Cluster Working Group leaders and the joint Secretariat (GBS, PER and MKUKUTA/MKUZA). These have been a force behind this success, both in terms of preparations and holding of the 2009 Annual National Policy Dialogue. I also take this opportunity to thank Chairs of Parliamentary committees, Regional Commissioners and District Commissioners, Regional Administrative Secretaries and District Executive Directors for their effective participation in this event. The decision to merge the GBS, PER and MKUKUTA/MKUZA review processes was made with the view to reduce transaction costs and to ensure that we have much more focused discussion; and to improve the effectiveness of the dialogue. You will all agree with me that this has indeed been realized during five days of our discussions and we commit ourselves to this structure for annual dialogue moving forward. The Government welcomes any suggestions for further improvement of the process so as to ensure greater efficiency in our dialogue. 2
3 Discussions have noted a number of areas where significant progress has been made, particularly the macro and social indicators. However there are remaining challenges in our desire to attain higher rates of growth which will translate into meaningful poverty reduction. It is gratifying to note the impressive progress in a number of PAF actions with many agreed actions achieved and rated satisfactory. There are also actions which require further work and those for which there has been split decision. While emphasizing the need to address those which have not being achieved, we need a convergent approach on those where disagreement have been recorded. The five days were split into two sessions. Session one concentrated on the performance and way forward for MKUKUTA/MKUZA, Public Expenditure issues and the role of the state in promoting Growth and Development. The second session reviewed implementation of PAF 2009 and discussed Tanzania s efforts towards combating corruption. It also discussed five key issues on Accelerating pro-poor growth in the context of Kilimo Kwanza, Business Environment, Equity and Efficiency; Opportunities and Challenges, Budget Execution and Financial Management at Central and LGAs. In all these issues, key messages have come out which the Government will consider and take steps to address them as and when appropriate. Some of the messages are: 1. To identify drivers of growth and ensure that growth translates into tangible benefits to the majority. 3
4 2. Realisation that the State has a facilitative role to play in the development of the Private Sector, capacity building of actors in the economy, and ensuring that the market is nurtured and regulated. 3. Predictability of resource flow both from domestic and external sources for smooth implementation of the budget. 4. Prominence be given to Governance issues, including the fight against corruption which requires a collaborative effort between the Government, Development Partners and citizenry. 5. Kilimo Kwanza should be implemented if we are to transform and modernize agriculture so that it contributes much more effectively to the Government effort towards pro-poor growth and poverty reduction. 6. Need to address challenges in financing Kilimo Kwanza including establishment of the Agriculture Bank. 7. Impediments for doing business should be addressed focusing attention on among others infrastructure, power, financing and harmonization of procedures and processes. 8. Enhancing Equity and efficiency in Service Delivery including addressing the remaining challenges in Pay reform. 9. Addressing factors that hinder full execution of the budget particularly the development budget; doing so in collaboration between the Government and Development Partners in terms of timely releases to the exchequer and onward disbursement to MDAs and LGAs. 10. Strengthen Public Financial Management at all levels including enhancing absorption capacity at LGA level. 4
5 Excellencies, Ladies and Gentlemen, I am quite confident that this year s Annual National Policy Dialogue has been productive in that it has allowed open and constructive dialogue between all parties; and has facilitated examination of critical issues in achieving the national development agenda. The focus on growth and poverty reduction, including renewed attention on the important social indicators is especially relevant given the current challenges emanating from the Global Financial Crisis. It is my expectation that the Government and Development Partners will continue to engage in constructive dialogue to minimize areas of disagreement with the view to resolving any outstanding issues. I understand that the 2010 PAF is being discussed and will soon be finalized. It is the Government s view that we will further take steps to enhance efficiency in our dialogue including making sure that the next PAF is simplified, implementable with few and clear targets that will have an impact in promoting growth and poverty reduction efforts. Chairperson: I now have the pleasure and honour to declare that the 2009 Annual National Policy Dialogue is officially closed. I thank you for your kind attention. Hon. Mustafa H. Mkulo (MP) Minister for Finance and Economic Affairs. Dar es Salaam 25 Nov,
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