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* Donors to give
Tanzania $495 mln for budget
* Warn future aid
at risk from corruption
* Demand action
on reports of funds misuse

Donors have pledged to increase aid to Tanzania to $495
million for its 2012/13 budget but warned future disbursements could depend on
how it tackled corruption and misuse of public funds.

The east African
nation of 42 million people is among the continent’s biggest per capita aid
recipients. Donors contributed almost 29 percent of its 2011/12 budget and they
are an important source of hard currency.

“Clear
results in the fight against corruption are crucial for economic and social
development in Tanzania,” a group of donors said in a statement on
Thursday.

“Over the
coming year continued and strong attention will be paid to the way public
finances are spent by closely monitoring how the findings in the latest
Controller and Auditor General’s annual report are being acted upon.”

The nation
received $453 million of aid for its 2011/12 budget, but the government’s
medium-term goal is to cut donor dependency in its budget to just 10 percent.

Donors that
provide general budget support to Tanzania include the African Development
Bank, Canada, Denmark, the European Union, Finland, Germany, Ireland, Japan,
Norway, Sweden, Britain and the World Bank.

They said more
than half of the funds would be disbursed in the first quarter of the next
financial year to boost government spending in development projects.

President Jakaya
Kikwete sacked six senior ministers this month, including the finance minister,
after a report by the government’s chief auditor exposed widespread misuse of
funds in ministries and public institutions. 

(Reporting by Fumbuka
Ng’wanakilala; Editing by Duncan Miriri)
Source: Reuters

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