ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

4 Planning and budgetingThe release of funds to LGAs will be made in quarterly installments against quarterlyreporting on costs and outputs. Initially, funds will not be transferred below thedistrict level. However, to stimulate public participation and resource planning withina known envelope, notional Indicative Planning Figures (IPFs) will be used withinwhich sub-district LGAs can plan. 50% of the CDG will be planned at the Districtlevel, and 50% at the sub-district level.The LGCDG, which forms an integral part of the government’s programme forintergovernmental fiscal reform, will be firmly embedded in the existing GoT financialprocedures and systems. LGCDG funds will be transferred to LGAs in accordancewith general Government procedures for transfers, accounting and financial reporting.Allocation of resources to districtsThe allocation of ASDP resources to districts is made using the LGCDG system. Theresources are provided through three fiscal grant transfers i.e. the DistrictAgricultural Development Grant (DADG); the Extension Block Grant (EBG) and theAgricultural Capacity Building Grant A-CBG). The allocation is based on a formuladeveloped by the ASDP National Steering Committee for allocation of resources tocouncils. Each grant comprises two elements, a basic unconditional grant available toall LGAs and an enhanced grant top-up that is subject to LGAs meeting a set ofpredetermined Minimum Conditions (MC) for access and adjusted upward ordownward by 25% annually to reflect performance improvements. Consistent with theLGCDG system, an annual assessment is conducted to determine those LGAs thatmeet the MC, and hence qualify to receive the grants, and also to determine thosethat qualify for a bonus/penalty adjustment (see Figure 4.2). In order to access theenhanced top-up grant, LGAs will have to meet MCs specific to the AgriculturalSector in addition to meeting the LGCDG MCs (see Tables 4.1 and 4.2).Figure 4.2: LGCDG AssessmentLGAMCs met?NoYesCBGCGBelowexpectedperformanceMCs met?ReasonableperformanceVery goodperformanceNoncompliancewith MCs-25%0% +25% No allocationGovernment of the United Republic of Tanzania29