The effectiveness of medium term expenditure framework on better management of public funds in Tanzania A Case of Ministry of Finance

This study examined the role of MTEF and its implications on improved service delivery at the Ministry of Finance. The study had three specific objectives namely: assessment of the awareness of employees on MTEF and its implications; procedures for funds release; and, challenges facing effective implementation MTEF. The study employed qualitative and quantitative techniques. Data collection instruments were interviews, observations, focus groups and questionnaires. Data collected were analyzed using Statistical Package for Social Sciences (SPSS). The findings of the study revealed that employees understanding on MTEF and its implication are still low with less enthusiasm. It was further revealed that there were good procedures for funds release with weak implementation due to too much reliance on donors. Furthermore, the findings revealed that the challenges were too much reliance on donors, budget indiscipline and mismatch between budget and policy. Conclusively it can be said that MTEF has not contributed to improved service delivery due to the said challenges. From the findings of the study, it is recommended that the government should establish more income generating programs and improve revenue collection to effectively implement MTEF.