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This Joint Staff Advisory Note reviews Tanzania’s Second National Strategy for Growth and Reduction of Poverty (NSGRP–MKUKUTA II) (2010/11–2014/15). MKUKUTA II provides an operational framework for achieving the Millennium Development Goals and Tanzania’s Development Vision 2025, which aims to transform Tanzania into a middle-income country. Key recommendations are to expand fiscal space through improving spending efficiency and enhancing domestic revenue mobilization in line with its potential, decisive actions to improve the investment climate, and better specification of costing and realistic financing.
This Joint Staff Advisory Note reviews Tanzania’s Second National Strategy for Growth and Reduction of Poverty (NSGRP–MKUKUTA II) (2010/11–2014/15). MKUKUTA II provides an operational framework for achieving the Millennium Development Goals and Tanzania’s Development Vision 2025, which aims to transform Tanzania into a middle-income country. Key recommendations are to expand fiscal space through improving spending efficiency and enhancing domestic revenue mobilization in line with its potential, decisive actions to improve the investment climate, and better specification of costing and realistic financing.
The joint staff Advisory Note on Senegal’s Poverty Reduction Strategy Paper reviews policies and strategies required to push forward the authority’s agenda for high, sustained, and inclusive growth and poverty reduction. The private sector is recognized as the main engine of growth in the Senegalese economy. The strategy is clearly focused on improving the investment climate, fostering entrepreneurship, and facilitating access to financial services for small and medium-sized enterprises, and consolidating support institutions. Senegal’s water and sanitation sector is one of the most developed in sub-Saharan Africa. The urban water Millennium Development Goal has been achieved, with access for 98 percent of the urban population, and the goal for rural water access is within reach.
A sound fiscal stance has been the bedrock for Tanzania's macroeconomic stability in recent years. Impressive increases in government revenues, together with substantial donor support, allowed for strong increases in government spending, without excessive recourse to domestic borrowing that could create pressures on monetary policy or crowd out private sector borrowing. To ensure a smooth implementation of the budget, further work is required to strengthen cash management. In addition, local government budget planning and execution remains weak and needs to be strengthened.
Tanzania's Second National Strategy for Growth and Reduction of Poverty (NSGRP II) is a continuation of government and national commitments to accelerate economic growth and fight poverty. Though MKUKUTA I (NSGRP I) yielded demonstrable positive results, it failed to meet some targets. MKUKUTA II was therefore implemented for realizing Tanzania’s Development Vision 2025 and the Millennium Development Goals (MDGs). MKUKUTA II is oriented more toward growth and enhancement of productivity, with greater alignment of the interventions toward wealth creation as a way out of poverty.