Tanzania is DFID's largest programme in Africa, and the UK is the largest bilateral donor providing budget support to Tanzania.  Through DFID, the UK Government contributed £103.5 million (approximately TSh 230 billion) to the Government of Tanzania in July 2009.  Apart from these funds, an additional £46.5 million has been allocated to other projects in the country this year.

The money will go towards the 2009/10 budget for the implementation of the Tanzanian Government’s National Strategy for Growth and Reduction of Poverty, popularly known as Mkukuta.

The money has been paid in a single sum at the beginning of the Government of Tanzania’s financial year, in line with the Government’s budgetary requirements.

Budget support is Tanzania's preferred aid modality.  It contributes to the reduction of transaction costs and builds Tanzania’s capacity to strengthen existing structures and systems for management of public resources.  In essence, the funds supplement the Government's budget, helping it to achieve the Millennium Development Goals.

The UK’s budget support forms part of a wider agreement between the Government of Tanzania and 14 development partners, including the UK, who provide budget support.

In addition to general budget support, the UK is assisting the implementation of key programmes, including governance reforms, tackling corruption, strengthening the business environment, deepening democracy, and supporting civil society.

The UK wants to see more people getting access to safe water, more mothers giving birth safely, and more children going to school.  We are therefore keen to support the Government of Tanzania to make faster progress in reducing poverty and bringing a better life to all its people.  This will mean being unremittingly focused on the reform process.  For example, it will mean working hard to improve the business environment so that businesses can grow and provide decent jobs.  It will mean taking decisive action to challenge and tackle corruption. And it will mean providing Tanzanians, including those in remote areas, with better access to public services.

The UK’s new White Paper on international development is available online at: http://www.dfid.gov.uk/commonfuture.