NOTICE

_____

This Bill to be submitted to the National Assembly is published for general information
to the public together with a statement of its objects and reasons.

Dar es Salaam Dr. Thomas D. Kashilillah

June, 2011 CLERK OF THE NATIONAL ASSEMBLY

AN Act to establish a Parliamentary Budget Office; to provide for a

transparent budgetary procedure and budget oversight; and to provide
for other related matters.

ENACTED by Parliament of the United Republic of Tanzania.

PART I - PRELIMINARY
1. (1) This Act may be cited as the Budget Act, 2011. Short title and
commencement
(2) This Act shall come into operation on the date which
the Minister may, by notice published in the Gazette, appoint.

2. In this Act, unless the context otherwise requires - Interpretation

“Budget” means the process by which Government sets

levels to efficiently collect revenue and allocate the spending
of resources among all sectors to meet national objectives;

“Budget Office” means the Parliamentary Budget Office

established by section 3;

“Commission” has the meaning ascribed to it under the

National Assembly (Administration) Act;

“compliance report” means one of several reports

submitted to the National Assembly by the Minister under section
11;
“financial year” means the period of twelve months
ending on 30th June of each year;

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 “standing committee” has the meaning ascribed to it under
the National Assembly (Administration) Act;

“Minister” means the Minister responsible for finance;

“Plan” means the National Assembly Plan;

“public corporate” has the meaning ascribed to it in the

Public Corporations Act;

PART II - PARLIAMENTARY BUDGET OFFICE

3. (1) There is established an office to be known as the Parliamentary

Budget Office.
Parliamentary Budget Office in the parliamentary service.

(2) The Budget Office shall consist of persons appointed

by the Commission on such terms and conditions applicable to
Parliamentary employees under the National Assembly
(Administration) Act.

(3) A person shall be appointed to the Budget Office who

holds at least a graduate degree or a certified professional
level/qualification from a recognized higher learning institution
either of the following fields:-

(a) finance;
(b) economic;
(c) tax law;
(d) accountancy;
(e) public administration and personnel.

4. (1) There shall be a Parliamentary Standing Parliamentary

Budget Office
Committee on Budget which shall be composed of all
Chairpersons of other Committees.

(2) The Parliamentary Budget Committee shall be led by

Chairperson of the Standing Committee responsible for finance
and its Vice Chairman shall be appointed from among
Chairpersons of Parliamentary Oversight Committees.

(3) The Budget Committee shall –

(a) focus on the preliminary estimates and the

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 macroeconomic plan and programs and submit
recommendations to the Speaker;

(b) Consider the National Budget and compile

amendments after refer them to the relevant
Committees;

(c) Carry on such other functions relating to the Budget

as may be assigned to it by Parliament under this
Act or any other law in force.

5. The functions of the Budget Office shall be to- Functions of the

Budget Office.

(a) provide the National Assembly with timely and

objective analysis of the national budget and economy.

(b) provide budget related information to relevant

committees;

(c) prepare reports on budgetary projections and economic

forecasts and options to reduce the budget deficit;

(d) study budget proposals and trends and where

appropriate, suggest changes in the content or format of
such proposals or trends;

(e) propose, where necessary, alternative scenarios for

various macro economic variables in respect of any
financial year;

(f) prepare estimates for the expenditure of the National

Assembly Fund for each financial year in accordance
with the procedure laid down by the provisions of Part
V of the National Assembly (Administration) Act;

(g) perform such other functions as may be assigned to it

by the Commission.

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 PART III -THE BUDGETARTY PROCESS

National Budget 6. (1) The Minister shall prepare and lay before the National
Plan
Assembly a National Budget Plan for a subsequent year.

(2) The Plan shall be laid before the National

Assembly during its February Meeting every year.

(3) The Plan shall state the broad strategic

macroeconomic issues that will be the basis of the budget of the
succeeding financial year and the medium term and shall include
-

(a) an assessment of the current financial year and the

projected state of the economy for the succeeding
three years.

(b) the macro economic and fiscal policies for the

specified period;

(c) targets for overall revenues, total aggregate

expenditure and domestic and external borrowing
for the succeeding financial year and the medium
term;

(d) the criteria used to allocate or apportion the

available public resources among the various
programmes;

(e) proposal for financing any deficits for the financial

year;

(f) forecast financial position for the financial year to

which the budget relates and the next two financial
years;

(g) the Government’s policy objectives that will guide

budget decisions during the financial year and the
policy areas that the Government will focus on
during the financial year.

Procedure for 7. (1) The Plan once laid before the National Assembly
adopting the
National shall be committed to the Parliamentary Budget Committee in
Budget Plan accordance with the procedure laid down in Parliamentary
Standing Orders.

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 (2) In considering the Committee shall consult
The Budget Office or any person that it considers necessary and
shall, lay its report before the National Assembly in its
subsequent Meeting.

(3) The National Assembly shall discuss the report of

the finance committee and make necessary general and specific
recommendations to the Government.

8.(1) The Minister shall, not later than 20th June of each Annual
estimates.
year, lay before the National Assembly, the annual estimates of
revenue and expenditure for the subsequent financial year.

(2) The annual estimates laid before the National Assembly

under the provisions of sub-section (1) shall specify all measures
taken by the Government to implement audit recommendations
made by the National Assembly in the previous year.

9. (1) Prior being laid before the National Assembly, the Consideration
of estimates by
annual estimates shall be considered by parliamentary standing parliamentary
committees pursuant to the procedure stipulated under committees.
parliamentary standing orders.

(2) Each standing committee shall consider, discuss and

review the estimates referred to it under the provisions of
subsection (1) in consultation with the Budget Office.

10. (1) Every public corporation shall be required to Preparation of

budget by
prepare its budget and submit to its Ministry by the end of April public
each year. corporations.
(2) The budget referred to under subsection (2) shall
comprise estimates of -

(a) all revenue for the period;

(b) capital and recurrent Expenditure.

(3) The approved budget by Treasury must be annexed to

the annual estimates of expenditure and revenue listed before the
National Assembly each year.

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 PART IV - OVERSIGHT OF THE NATIONAL BUDGET
Monthly 11.(1) Within twenty-one days after the end of each
publication of
revenues month the Minister shall publish in the Gazette a statement of
actual revenues collected by category and net exchequer issues
by Ministry.

Compliance 12.(1) The Minister shall, three months after the laying
report
of the budget before the National Assembly, and every quarter
thereafter, lay before the National Assembly, sequentially and
cumulatively, a compliance report in such form and of such
content as may be prescribed.

(2) Where the National Assembly is not in session on

the date specified under subsection (1), the compliance report
shall be laid before the National assembly on the second day
immediately after the reconvening of the National Assembly.

(3) A compliance report shall -

(a) indicate for the period under review, the extent

to which the objectives and targets in the budget
policy statement wee met;

(b) specify the following amounts and compare

them with the corresponding targets for the
period under review -

(i) the actual revenue for the relevant period

and a comparison of the expected;

(ii) the actual expenditure per vote,

distinguishing between capital and current
expenditure for that period, and for the
financial year up to the end of that period.

(iii) actual borrowing for that period, and for

the financial year up to the end of the
financial year.

(4) In the event that objectives and targets were not met,
the compliance report shall so state-

(a) the reasons why such objectives and targets were

not met;

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 (b) the remedial measures being undertaken to ensure
that objectives and targets not met will be made
good in the next quarter;

(c) any proposed Government policy decisions that

may materially affect the objectives and targets in
the budget statement of intent or the country’s
overall fiscal and economic performance.

PART V – MISCELLANEOUS PROVISIONS

13. (1) The Permanent Secretary for the time being in- Authority to
obtain
charge of the Treasury may from time to time request for information.
information from any public institution that is necessary for
purposes of preparing any report that is required to be prepared by
this Act.

(2) A request under subsection 1 must be in writing and

may provide guidance in terms of the date by which, and the
format in which, the information must be provided and any public
institution, that is so requested, must comply with the request.

14. The Minister shall, on the recommendations of the Regulations.

finance committee, make such regulations as necessary for the
better carrying out of the provisions of this Act and, without
prejudice to the generality of the foregoing, such regulations shall
provide for

(a) the contents and form of the various reports required

under this Act;

(b) the times in which the quarterly compliance reports shall

be laid before the National Assembly;