SWEDEN INREASE CONTRIBUTE TO GENERAL BUDGET SUPPORT (GBS) SIGNED TODAY

From left the ambasador of swenden in tanzania H.E Mr staffan Herrstrom and beside him permanent secretary ministry of finance and economic affairs Ramadhani Mussa Khijjah.

The government of united republic of Tanzania and Sweden have today signed a bilateral financing agreement under which Sweden will to provide Swedish kronor 1.8 bilion,equivalent to Tanzania shilings313 billion to the government to the Government of Tanzania for general Budget support(GBS) for fiscal years 2009/10 to 2012/13. The Swedish GBS grant will not be tried to any sector or project and will be disbursed in four equal annual installments of up to SEK 450 million(equivalent to Tshs.78.3 billion). This support Demonstrate Sweden`s continued commitment to support Tanzania`s development. The general Budget support is expected to constitute around 55% of the Swedish aid portfolio to Tanzania, in addition to support Education, research energy, government, human rights and private sector development. GBS continues to be Tanzania most prefer aid delivery modality as it contributes to reduction of transaction costs and build Tanzania`s capacity to strengthen existing structure and system for management of public resources.GBS is channeled through the Government Budget without earmarking to particular sector or activities .Hence GBS will strengthen Tanzania`s administrative system and will enhance accountability ,transparency and possibilities for management public and parliamentary scrutiny on the use of public resources.