June 18, 2014
Japan International Cooperation Agency (JICA) has been supporting re-designing work of The Local Government Development Grant (LGDG) System in the area of; LGDG Operational Guideline, LGA Assessment Guide and Monitoring & Evaluation framework since March, 2014.
The LGDG system designed in 2004/05 is the preferred modality of transferring fund to Local Government Authorities in Tanzania. During the implementation of the just ended Memorandum of Understanding (2008 to 2013), the LGDG system had been critically reviewed through several studies. The LGDG system has reached its peak as a tool for incentivizing LGAs internal capacity to improve service delivery to their citizen hence need for its revision. The well-known challenges included inability to address inequality issues across and within LGAs, value for money aspects on the implemented projects and adherence to formula allocation on the disbursement aspects.
Under the Public Financial Management Reform Programme (PFMRP), Ministry of Finance (MoF) and Prime Minister's Office - Regional Administration and Local Government (PMO-RALG) jointly formulated action plans for rationalizing and streamlining intergovernmental financial transfer to LGAs as national system. This re-designing work is in line with the action plan.
The stakeholder's meeting was hold for collecting comments and information on the current LGDG system from relevant Ministries and Agencies, Regional Secretariats and Local Government Authorities on April 10th, which is uploaded in the following PMO-RALG homepage. Mr. Michiyuki Shimoda, Local Government Advisor delivered his presentation on the effective and efficient
The re-designing work is conducted in the following 4 phases: (1) Inception Phase in March, (2) Field Survey and Analysis in April and May, (3) Guideline and Framework Development in June and July, (4) Refining and Finalizing the Guideline and Framework in August.