Safe Motherhood: A Review - Family Care International

Tanzania
Sectors category, along with education and
water. Approximately 10% of the recurrent
budget is allocated to health (see table below).
Administration
Defense
Social Sectors
• Education
• Health
• Water
• Other Social
Subtotal Social Sectors
Economic Infrastructure
• Roads
• Others
Subtotal Economic Infra
Productive
Grand Total
The four sources of funds for government
expenditure on health include:
• domestic revenue;
• foreign loans and grants;
• private cost sharing through the Health
Service Fund and Community Health Service
Fund; and
• The National Health Insurance Fund (NHIF).
Beginning in 1999–2000, more than 50% of
the health budget is financed by donor funds,
largely through the HSBF, described above.
Central government tax revenues finance
between 43–46%, with the remainder of the
budget supported by a health insurance
scheme and two cost-sharing funds
established between 2002–2003.
Percentage Share of Health Budget in Recurrent and
Development Expenditures, 2003–2004 to 2006–2007
Ceiling Projection Projection Projection
2003/04 2004/05 2005/06 2006/07
27.3 34.9 35.2 35.0
18.1 15.9 15.8 15.8
22.3 20.5 20.6 20.6
10.8 9.7 9.6 9.6
1.5 1.5 1.5 1.5
0.6 0.6 0.6 0.6
35.2 32.3 32.3 32.3
7.7 6.7 6.7 6.8
3.7 3.1 3.1 3.1
11.4 9.8 9.8 9.9
7.5 6.8 6.6 6.6
100 100 100 100
Source: United Republic of Tanzania/Task Team Ministry of Health: Health Sector Public Expenditure
Source: Review United (per) Republic Update Fiscal of Year Tanzania/Task 2004: Final Report, Team May Ministry 2004 of Health: Health Sector Public Expenditure Review
(PER) Update Fiscal Year 2004: Final Report, May 2004.
As stated previously, the HSBF was
established in 1998 as part of the Health
Sector Reform process, and is managed by a
National Basket Financing Committee hosted
by the Ministry of Health, the Ministry of
Finance, and the President’s Office, Regional
Administration and Local Government. While
basket funds initially supported the recurrent
budget, they have begun in 2001–2002 to
support the development budget as well. 88
Basket funding has increased steadily from
1.0% of total health funds in 1999–2000 to just
over 15% in 2004–2005 as shown on
the next page.
88 The recurrent budget finances salaries and operational costs (such as drugs, fuel, etc.); the development budget funds
capital works and purchases of a capital nature, such as new construction and repairs and the purchase of motor vehicles,
machines, and equipment.
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