Ministry of Finance and Planning (Tanzania)
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The Ministry of Finance is a government ministry of Tanzania.
| Wizara ya Fedha na Mipango (Swahili) | |
 | |
| Ministry overview | |
|---|---|
| Formed | 1964 |
| Jurisdiction | Government of Tanzania |
| Headquarters | Treasury House, Dodoma 6°48′0″S 39°17′42″E |
| Minister responsible |
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| Deputy Minister responsible |
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| Ministry executive |
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| Website | www |
The Ministry of Finance in Tanzania plays a pivotal role in the economic governance of the United Republic of Tanzania. Established to manage the comprehensive financial affairs of the government, the ministry is tasked with overseeing revenue generation, expenditure, and financing, all of which are crucial elements in sustaining the country's economic and social development."[1] The primary mission of the Ministry of Finance is to provide strategic financial guidance to the government, ensuring that fiscal policies align with broader economic and social objectives. Its responsibilities encompass a wide range of financial matters, including:
Budget Preparation: One of the key functions of the ministry is the preparation of the Central Government budget. This involves meticulous planning and allocation of resources to various sectors in line with the government's priorities and development goals.
Tax Policy and Legislation: The ministry is instrumental in the development of tax policies and legislation. This includes formulating strategies to enhance revenue collection, promote fiscal responsibility, and create a conducive environment for economic growth.
Government Borrowings: Managing government borrowings on financial markets is another critical duty. The ministry is responsible for making informed decisions regarding borrowing to meet the financial needs of the government while ensuring prudent fiscal management.
Expenditure Allocation: Determining the allocation of expenditures to different government institutions is a key aspect of the ministry's role. This involves balancing the needs of various sectors to optimize resource utilization and promote equitable development.
Grants to Local Governments: The ministry oversees the transfer of central grants to local governments, playing a vital role in decentralized governance and supporting local development initiatives.
Regulatory Policy for the Financial Sector: Collaborating with the Bank of Tanzania, the ministry is involved in developing regulatory policies for the country's financial sector. This includes creating a regulatory framework that ensures stability, transparency, and efficiency within the financial system.
International Representation: The ministry represents Tanzania within international financial institutions, fostering collaboration and engagement with the global economic community. This involves participating in discussions, negotiations, and agreements that have implications for Tanzania's economic well-being."[1]
The ministry is located in Dodoma[2] and is headed by Minister Hon. Dr Mwigulu Lameck Nchemba and Deputy Minister Hon. Hamad Hassan Chande.[3]
The transformation of the Ministry of Finance and Economic Affairs into the Ministry of Finance, with the concurrent creation of a new ministry called the Ministry of Planning and Investment, represents a significant restructuring in the governance and management of Tanzania's economic and financial affairs. This reorganization reflects a strategic decision to enhance efficiency, streamline responsibilities, and promote focused attention on specific aspects of government functions.
Historical Context:
Ministry of Finance and Economic Affairs: The Ministry of Finance and Economic Affairs operated with a broad mandate, encompassing both financial management and economic planning. Under this structure, the ministry likely played a central role in formulating economic policies, managing financial resources, and overseeing the economic development agenda of the government.
Reorganization and Creation of the Ministry of Finance: The decision to reorganize the ministry and establish the Ministry of Finance on July 6, 2023, suggests a deliberate move to separate financial management functions from economic planning. This restructuring acknowledges the need for specialized focus in these areas to address the evolving challenges and opportunities in Tanzania's economic landscape.
Formation of the Ministry of Planning and Investment: With the split of the planning mandate, the creation of the Ministry of Planning and Investment signifies a dedicated effort to concentrate on strategic planning, economic development initiatives, and investment promotion. This new ministry is likely tasked with formulating long-term development plans, attracting investments, and fostering economic growth.
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