ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives
ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives
4 Planning and budgetingThe ASDP funds are part of resources allocated to DADP. The details for developingDADP plans are provided in Guidelines for DADPs.This section demonstrates how the DADP fits into the LGA planning and budgetingpreparation cycle and the way in which ASDP resources are identified under thefollowing sub-sections:• Setting of ceilings• LGCDG system• Allocation of resources to districts• Notification of districts• Development of DADP, action plans and budgets.Setting of ceilingsThe ceilings are aggregated for a three-year period covered by MTEF by the ASDPNational Steering Committee based on the resources available from GoT anddevelopment partners. This process takes place on an annual basis following a jointGoT and development partners review of the programme.LGCDG systemThe PMO-RALG has developed a formula-based capital and capacity buildingtransfer mechanism, the Local Government Capital Development Grant (LGCDG)system, which includes strict ex-ante minimum access criteria and performanceincentives, in order to:• Enhance the delivery and management capabilities, productive efficienciesand financial sustainability of local governments• Improve the access of communities, and specifically the poor, to localservices through expanding the physical stock of new and rehabilitatedlocal infrastructure.The LGCDG system seeks to enhance the capacity of LGAs to provide publicservices on an efficient and sustainable base primarily by the provision ofdiscretionary Capital Development Grants.Government of the United Republic of Tanzania28
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
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4 Planning <strong>and</strong> budgetingThe <strong>ASDP</strong> funds are part of resources allocated to DADP. The details for developingDADP plans are provided in Guidelines for DADPs.This section demonstrates how the DADP fits into the LGA planning <strong>and</strong> budgetingpreparation cycle <strong>and</strong> the way in which <strong>ASDP</strong> resources are identified under thefollowing sub-sections:• Setting of ceilings• LGCDG system• Allocation of resources to districts• Notification of districts• Development of DADP, action plans <strong>and</strong> budgets.Setting of ceilingsThe ceilings are aggregated for a three-year period covered by MTEF by the <strong>ASDP</strong>National Steering Committee based on the resources available from GoT <strong>and</strong>development partners. This process takes place on an annual basis following a jointGoT <strong>and</strong> development partners review of the programme.LGCDG systemThe PMO-RALG has developed a formula-based capital <strong>and</strong> capacity buildingtransfer mechanism, the Local Government Capital Development Grant (LGCDG)system, which includes strict ex-ante minimum access criteria <strong>and</strong> performanceincentives, in order to:• Enhance the delivery <strong>and</strong> management capabilities, productive efficiencies<strong>and</strong> financial sustainability of local governments• Improve the access of communities, <strong>and</strong> specifically the poor, to localservices through exp<strong>and</strong>ing the physical stock of new <strong>and</strong> rehabilitatedlocal infrastructure.The LGCDG system seeks to enhance the capacity of LGAs to provide publicservices on an efficient <strong>and</strong> sustainable base primarily by the provision ofdiscretionary Capital Development Grants.Government of the United Republic of Tanzania28
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