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Poverty-Environment Initiative: Public Environment Expenditure Review in Tanzania

This report presents the findings and recommendations of the Public Environment Expenditure Review (PEER) conducted in Tanzania. It assesses the allocation and utilization of funds for environmental management at the local level and evaluates the effectiveness of these expenditures in addressing key environmental challenges. The report also examines the budgeting systems and procedures in local government authorities and identifies gaps and areas for improvement.

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Poverty-Environment Initiative: Public Environment Expenditure Review in Tanzania

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  1. TANZANIA Poverty-Environment Initiative Public Environment Expenditure Review Country Experience Presented to the PEI Africa Regional Economic Forum 8-11 November 2010

  2. Outline Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative PEI Program Objectives Key Achievements related to Public Environment Expenditure Reviews (2) Objectives and Methodology Key Findings/Recommendations Policy Impact Challenges and Response Lessons Learned Next Steps

  3. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative BACKGROUND (1) • PEI is a Joint Program between Government of Tanzania, UNDP Tanzania and UNEP that commenced in July 2007 to December 2010. • The overall goal of the program which is linked to Tanzania’s UNDAF (2007-2010) is to contribute to poverty reduction and improved well-being of poor and vulnerable groups through mainstreaming of poverty-environment linkages into national development processes • Programme implementation is coordinated by Vice-President’s Office (Division of Environment) including • Poverty Eradication Division (Ministry of Finance), • National Environmental Management Council • National Bureau of Statistics • Prime Minister’s Office/Regional Administration and Local Government • Ministry of Livestock and Fisheries • University of Dar es Salaam (Environment for Development) • Civil Society Organisations • Media organizations. • The total budget (2007-2010) is USD 4 million of which USD 3.45 million has been mobilized.

  4. BACKGROUND (2) Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Outcome (1): Institutional capacity further enhanced to integrate environment and livelihoods issues into sector and district level plans and to implement strategic poverty-environment interventions at local level Outcome (2): Improved access and utilization of environment/livelihoods data for use in MKUKUTA process and in local level planning Outcome (3): Sustainable financing of environmental targets contained in the National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA in Swahili) Outcome (4): Promoting efficient utilization of rangelands and empowering pastoralist to improve livestock productivity through improved livestock productivity and market access

  5. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Public Environmental Expenditure Review in Mbozi, Sengerama, and Singida in Tanzania Public Environmental Expenditure Review in Kongwa District Council in Tanzania Review of Current Practices in Applying Economic Instruments for Environment Management in Tanzania Economic evaluation of Ihefu wetlands KEY ACHIEVEMENTS

  6. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative To evaluate actual environmental expenditure and management capacity at the local level in order to inform future policy decision and legislation by: To determine whether the expenditures address policy priorities in the most appropriate way To ensure that particular expenditures do address policy priorities through the use of an appropriate approach in allocating and managing funds to produce desired result To determine fund requirements, amount approved and the actual expenditure for environmental management in the district To assessing the level of environmental expenditures in addressing the major environmental challenges identified by the National Environment Policy (i.e. capacity building and public awareness raising, climate change, ecosystems and biodiversity conservation, institutional support, land degradation and deforestation, policies and legal framework and pollution control) To assess the level of environmental expenditure for implementation of MKUKUTA interventions related to environment OBJECTIVES: PEER Kongwa

  7. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative To examine the budgetary systems in the local government in line with the government environmental priorities To determine environmental problems in the three Councils To determine factors causing environmental problems in the three Councils To examine Budgeting systems and procedures in local government authorities To determine environmental aspects and activities considered in the Councils budgeting process To determine the gap between the needs of the financial resources and the actual amount allocated and spent on environmental matters To determine human resource capacity to manage environmental resources sustainably OBJECTIVES: PEER Mbozi, Sengerama, Singida

  8. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Data for this review was mainly collected from secondary sources at Kongwa District Council including Medium Term Expenditure Frameworks, progress and annual reports of various projects and programs implemented in the district. However primary data to a less extent was collected to complement secondary data. Primary data was collected through discussion with key staff informants such as District Executive Director, District Planning Officer, Officials in the Department of Natural Resource and Environment, Agriculture and livestock development. Collected data were analyzed using descriptive statistics and Content Analysis. Underlying factors in deciding to use this particular arrangement are: Time constraints and Financial resource constraints The methodology responds to the country needs through highlighting the need to improve financial resources allocation for the local government authorities so that to increase the capacity to address sustainable growth and poverty reduction. METHODOLOGY: PEER Kongwa

  9. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Used a participatory approach as the main strategy for accomplishing this assignment. Both primary and secondary data were collected. Primary data were collected through various methods including discussion with Government officials such as Council Directors, environmental officers, the local communities and environmental committee members, interview with key informants and observation. Secondary data were collected from various council Medium Term Expenditure Framework (MTEF), Council quarterly progress reports, Council annual implementation reports, programmes/project document and their associated implementation reports and any other relevant document that was available. Descriptive statistics and content analysis were employed for data analysis METHODOLOGY: PEER Mbozi, Sengerama, Singida

  10. KEY FINDINGS Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative The key findings for the Kongwa PEER are: The review of public environmental expenditure indicates that the total budget for addressing environmental challenges in the district between 2004/05 to 2008/09 fluctuated. The general trend was for the total approved budget to be lower than the requested budget. In 2004/05 the bulk of public environmental expenditures was allocated to institutional support (53%), followed by capacity building and pollution control and sanitation. However, the majority was spent on capacity building, pollution control and sanitation and finally only 21% on institutional support. No funds were allocated or spent on ecosystem and biodiversity, land degradation, policies and legal frameworks or climate change. However, there was a change in 2006/07 and 2007/08 where for the first time land degradation and deforestation were taken into account and it was allocated up to 53% of the total budget for environment challenges.

  11. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Environmental problems are still major issues of concern and people’s livelihoods are under threat due to the negative impacts from environmental degradation. Funds budgeted to address environmental issues have increased over time. However, there are major fluctuations in environment budgets due to changing national priorities including a higher focus on education e.g. construction of secondary school in each ward. Funds approved for addressing environmental issues were always far less than the budgeted ones. The need for more funds is still an issue of concern. In all the councils, actual expenditure of approved fund for addressing environmental issues was quite low. Late release of funds mainly affected activities scheduled for the last quarter of the financial year. There is currently a deficit of qualified personnel to deal with environmental issues at council level. The major constraints noted were inadequate knowledge and skills to carry out their roles and responsibilities and lack of financial support from the council. KEY FINDINGS (PEER of 3 LGAs)

  12. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Key recommendation is to refocus the process of allocation and spending of funds for environmental management to take into account responses to key poverty and environment challenges including ecosystems and biodiversity, policies and legal frameworks and climate change Specific recommendations include; Funds should be allocated to address policies and legal frameworks, climate change and ecosystem and biodiversity; Projects addressing land degradation and deforestation should be have access to sustainable funding; Adequate funds should be approved and released on time to implement planned environmental activities; The Government through its Budget Guidelines should direct and stipulate the minimum level of expenditure by LGAs on environmental management LGAs should have clear objectives on environment in their MTEFs to avoid considering environmental issues only as cross cutting; Adequate and qualified personnel to handle environmental issues should be recruited including a Scheme of service for environmental officers RECOMMENDATIONS

  13. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative The PEER recommendations are being used to contribute to policy/decision making at national, sector/local levels through dialogue with Prime Ministers Office – Regional Administration and Local Government as well as the Ministry of Finance to advocate for widening the scope for regular public environment expenditure reviews at sub-national level. The findings are also used to raise awareness of the need for increased financial and human resources for local government authorities to address poverty and environmental challenges on a sustainable basis. A key issue for dialogue will be ensuring that there are adequate and qualified personnel at the local government level to promote sustainable utilization of environment and natural resources for growth and poverty reduction through appropriate training and recruitment processes. Also the results are being used in advocating to all LGAs to ensure that one of the objectives on the MTEF is on environment segment. POLICY IMPACT

  14. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Lack of Financial and Human resources at all level –LGA budget to be allocated more on environment Absence of Environmental objective code in budget process – VPO to follow up the objective code from MOFEA Lack of Environmental committees in some communities- Implementation of EMA Inefficiency of Public Environmental Expenditures review, since the LGAs staff perceive it as an auditing process- PER advocacy to LGA staff CHALLENGES AND RESPONSE

  15. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative [please include lessons learned from the process of carrying out the PEERs e.g. recruitment, capacity, timing, resources, involvement of partners, dialogue, follow – up] LESSONS LEARNT

  16. Government of TanzaniaUNDP-UNEP Poverty- Environment Initiative Study findings will be used to raise the awareness of policy makers and planners at local government and national levels on the need to accord high priority to sustainable use of environmental resources by timely funding strategies to address land degradation, protect water sources; and climate change adaptation and mitigation. In addition, results will be used to advocate for the Ministry of Finance and Economic Affairs to improve the investment in environmental services and enhancing the tracking of environmental expenditures through a specific environmental objective budgetary code to trace fund allocation and expenditure by local government authorities on environmental activities. Furthermore, the findings of the PEER studies were presented to the management and have assisted in decision making where the Prime Minister’s Office – Regional Administration and Local Government has decided to scale up to other five districts of Tanzania mainland. The reports for the five districts are more broader including PER for other sectors and we expect to use them to assess MDG performance in the districts. NEXT STEPS

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