1. Study of LGA Fiscal Inequities Inception Meeting 31 October 2013 1

2. Odi.org.uk| dege.dk Overview of presentation  Objective of Assignment  Key Issues from TOR (Background)  Team and indicative work plan  Preliminary observations on data availability  Preliminary observations on fieldwork,  Guidance from Government regarding –Available data on staffing and fiscal transfers, –What initiatives for staffing of “hard to serve areas” should be included in review? –Agreement on contact persons in each of the key ministries, –Agreement on meetings during inception (up to 7 November) 2

3. Odi.org.uk| dege.dk Objective of Assignment  The initial analytical objective of the assignment is to analyze progress, achievements and challenges of the current strategies for addressing inequalities of recurrent grant allocations across LGAs.  The overall aim of the assignment is to develop practical guidance on how the declared Government policy of more equitable LGA staff and fund allocations (for the purpose of achieving more equitable service delivery), can be supported through the LGA grant system (both recurrent and development grant systems) and other relevant measures. 3

4. Odi.org.uk| dege.dk Key Issues from TOR (Background) PE and OC is distributed very unequally: All recurrentHealthEducation Edu and Health OC Edu and health PE Average49 7388 99740 7417 24142 497 Highest 126 224 (Bukoba) 30 755 (Pangani) 111 643 (Bukoba) 29 284 (Longido) 110 599 (Bukoba) Lowest 22 373 (Kasulu) 2 810 (Lushoto) 18 483 (Kasulu) 2 640 (Nzega) 18 607 (Kasulu) Source: Rapid Budget Analysis for FY 2012/13. 4

5. Odi.org.uk| dege.dk Key Issues from TOR (Background):  The most significant inequalities appears to be in health sector, but are also significant in education and agriculture sectors,  The patterns of inequity appears (according to RBA) not to change much overall over the years,  However, in e.g. education some LGAs appears to have improved significantly,  Staff allocations appear also to be very unequal within districts – in general urban areas and centers are much better served than rural and remote areas, 5

6. Odi.org.uk| dege.dk Key Issues from TOR (Background):  The Public Service Pay and Incentive Policy aims to “attract staff to work in LGAs with staffing problems and ensure they are equitably distributed”.  Central Government (MOF, PO-PSM, sector ministries) and individual LGAs have over the years initiated various initiatives to attract and retain staff in “remote”/”disadvantaged LGAs,  The objective of this assignment is to “assess state of affairs” and “propose practical implementation” of agreed policy. 6

7. Odi.org.uk| dege.dk Indicative work plan PhaseIndicative Timing Phase I. Inception Background literature review 24 October - 7th November Team synthesis 24 October - 7th November Develop methodology and workplan 24 October - 7th November Inception meetings with client in Tanzania 24 October - 7th November Assessment of data availability (MOF, PO-PSM, PMO- RALG) 24 October - 7th November Inception Report15 November Phase II: Desk Analysis7th -22 November Phase III: Fieldwork Fieldwork in 8 selected LGAs as in TOR25 November - 13th December Phase IV – Analyses– Final report Draft Report20 December Workshopw/c 6th January Final Reportw/c 20th January Management / QA 7

8. Odi.org.uk| dege.dk Team Per Tidemand, DEGE ConsultTeam Leader Nazar Sola, DEGE ConsultLG HRM Specialist Alloyce Maziku, DEGE ConsultLG PFM Specialist Tim Williamson, ODIIntergovernmental Transfer Systems David Mihalyi, ODIPFM / Fiscal Analysis Julia Tobias, ODIService Delivery / Governance Analysis Francesca Bastagli, ODIFiscal Analysis / Technical Methods Helen Tilley, ODIManagement / QA Kevin Watkins, ODISenior Technical Review Overseas Development Institute has with Dege Consult been contracted by DfID to undertake the assignment. The team reports to an interministerial task force composed by: PMO-RALG (chair), MOF, PO-PSM, invited sectors and DP representations. 8

9. Odi.org.uk| dege.dk Preliminary observations on data availability: Fiscal transfers Some data on LGA fiscal transfers are publicly available (PMO-RALG and MOF websites). In particular the PMO- RALG website is very well structured and we propose to use this structure as basis for analyses. However, for the purpose of this study we need: –Data for a five year period if possible –Data in excel or other data base form, –Verification of actual transfers? (from IFMIS?) 9

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11. Odi.org.uk| dege.dk Preliminary observations on data availability: Personnel data  Data on staff allocations are not immediately publicly available, but we assume these can be extracted from: –the Lawson HR MIS in PO-PSM? –Other PO-PSM data bases? –Sector statistics – Ministry of Education, Health and Agriculture?  Procedures for staff allocation, deployment and retention to be explored: –Role of PO-PSM? –Role of PMO-RALG and sector ministries? –Role of LGAs (fieldwork)? 11

12. Odi.org.uk| dege.dk Preliminary observations on field work  Include 8 LGAs,  Include some of the top, bottom and middle LGAs (see table in terms of per capita recurrent allocations),  Include some LGAs that have improved,  Will analyze local patterns of inequity,  Explanatory factors,  Preliminary effects of strategies 12

13. Odi.org.uk| dege.dk Guidance to study  Data availability – finance –5 year trends of fiscal transfers, (budgets + actual), – 2008/09, 09/10, 10/11, 11/12, 12/13  Data availability – staffing –the Lawson HR MIS in PO-PSM? Other PO-PSM data bases? –Sector statistics – Ministry of Education, Health and Agriculture?  Which key Government initiatives to review? –PO-PSM work in 33 LGAs for local incentives for staff retention/attraction? Status of Pay and Incentives Strategy? –Sector strategies? Education, Health, others?  Contact persons in ministries, appointments for meetins up to 7 November? 13