Problems and prospects of Zanzibar’s development budget: the case of health projects

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
University of Dar es Salaam
Since early 1980s, Zanzibar economy has been declining followed by the decline of clove prices in the world market. Due to this, Zanzibar has relied heavily on loans and foreign aid as a source of capital to finance her development projects. Zanzibar has and still is receiving significant amounts of foreign aid in form of technical assistance, concessional loans and grants. The study aimed at examining problems and prospects of Zanzibar' development budget, and a health project was taken as a case study. This study focuses on two objectives as follows: (1) to explore reasons that make some donor to finance development projects directly. (2) to examine the performance of health projects financed by donor through government budget and those financed by donor directly. The survey result of this study shows that, there is a direct relationship between foreign financing and project performance. The study also shows that; projects that are financed directly by donors perform better relatively to those projects donor¬ funded through government budget. The study reveals a number of problems facing Health projects and Development Budget performance include; overdependence on foreign aid, narrow tax base followed by poor revenue collections to meet development expenditure of the country The study recommends that, the government should continue to sustain macroeconomic reforms to spur investment and higher growth, and promote economic diversification especially of higher- value crops, fruits, and spices other than cloves. The government should expand the tax base and improve its administration so as to realize better collections to match expenditure needs, if sustainable development budget is to be attained in Zanzibar.
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ 9013.23H8)
Medicare, Costs, Budget, Zanzibar
Hungwi, J (2005) Problems and prospects of Zanzibar’s development budget: the case of health projects.Master dissertation, University of Dar es Salaam, Dar es Salaam.