CHAPTER 348
PUBLIC FINANCE ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

PART I
PRELIMINARY PROVISIONS

   1.   Short title.

   2.   Act to bind the Government.

   3.   Application.

   4.   Interpretation.

PART II
CONTROL AND MANAGEMENT OF PUBLIC FINANCE

(a) Duties and Powers of Minister and the Treasury

   5.   Control, management and supervision of public finances.

   6.   Role of Permanent Secretary and the Paymaster-General.

   7.   The Accountant-General.

   8.   Accounting officers.

   9.   Regulations and directions.

   10.   Penalties and surcharge.

(b) The Consolidated Fund and Other Public Funds

   11.   The Consolidated Fund.

   12.   Special funds.

   13.   Investment of moneys in the Consolidated Fund.

   14.   Moneys raised or received to exclude deposits or trust funds.

   15.   Bank accounts.

   16.   Issues from the Consolidated Fund.

   17.   Accountant-General's warrant.

PART III
ESTIMATES OF REVENUE AND EXPENDITURE

   18.   Estimates of revenue and expenditure.

   19.   Excess expenditure.

   20.   Grants of credit.

   21.   Provision of Appropriation Act not in force.

   22.   Minister may authorise advances

   23.   Duration of appropriations and warrants.

   24.   Development project contracts.

PART IV
PREPARATION AND EXAMINATION OF ACCOUNTS

(a) Submission of Accounts and Reports

   25.   Annual accounts.

(b) Audit Authorities

   26.   Offices and officers of Controller and Auditor-General.

   27.   Appointment of acting Controller and Auditor-General.

   28.   Independence of officers and employees.

   29.   Appointment and control of officers.

(c) Functions of Controller and Auditor-General

   30.   General responsibility of Controller and Auditor-General.

   31.   Functions of Controller and Auditor-General.

   32.   Power of Controller and Auditor-General.

   33.   Value for money audits.

   34.   Power to make recommendations.

   35.   Annual and other reports.

   36.   Reports under this Part to be laid before National Assembly.

PART V
AUDIT OF PUBLIC AUTHORITIES AND OTHER BODIES

   37.   Audit of public authorities, etc.

   38.   Reports on audit.

PART VI
FINANCES AND AUDIT OF THE OFFICE OF THE CONTROLLER AND AUDITOR-GENERAL AND RELATED PROVISIONS

   39.   Funds for the Controller and Auditor-General.

   40.   Accountability.

   41.   Estimate of revenue and expenditure.

   42.   Audit of accounts of the Controller and Auditor-General.

PART VII
MISCELLANEOUS PROVISIONS

   43.   Abandonment of claims, etc., and write-off of public money and stores.

   44.   Offences.

   45.   [Repeal of R.L. Cap. 439.]

SCHEDULE

CHAPTER 348
THE PUBLIC FINANCE ACT

An Act to repeal the Exchequer and Audit Ordinance in order to make better provisions for the more effective control, management, and regulation of the collection and use of the finances of the United Republic and for enhancing Parliamentary control and supervision of public funds and resources, and for related matters.

[1st July, 2001]
[G.N. No. 130 of 2001]

Act No. 6 of 2001

PART I
PRELIMINARY PROVISIONS (ss 1-4)

1.   Short title

   This Act may be cited as the Public Finance Act.

2.   Act to bind the Government

   This Act binds the Government of the United Republic.

3.   Application

   This Act shall apply to the business and operations conducted by the Treasury and under the supervision and authority of the operations of the Accountant-General and of the Controller and Auditor-General.

4.   Interpretation

   In this Act unless the context requires otherwise–

   "Accountant-General" means the officer appointed under section 7;

   "accounting officer" means any officer appointed by the Paymaster-General and charged with the duty of accounting for any service in respect of which money have been appropriated by the National Assembly or any person to whom issues are made from the Consolidated Fund;

   "Appropriation Act" means any Act to apply a sum out of the Consolidated Fund to the service of a financial year;

   "Consolidated Fund" means the Consolidated Fund of the Government of the United Republic referred to in section 11;

   "Constitution" means the Constitution of the United Republic of Tanzania *;

   "Controller and Auditor-General" means the officer referred to in Article 143 of the Constitution;

   "department" in relation to a Ministry of the Government or other public authority or other body, includes any division or unit, by whatever name known, of that Ministry, authority or other body;

   "financial year" means in relation to–

   (a)   the Government, other than local government authority, a period of twelve months ending on 30th June of each year;

   (b)   a local government authority, the same meaning ascribed to it in the local Government Finances Act *;

   (c)   a public authority or other body, the period specified by or under the relevant law or instrument relating to that authority or body or as determined by the competent authority of that authority or body;

   "generally accepted accounting practice" means accounting practices and procedures recognised by accounting profession authorities as appropriate for reporting financial information relating to Government, a Ministry or Department, a Fund, an Agency or other reporting unit, being practices and procedures that are consistent with this Act and any relevant Appropriation Act;

   "Minister" means the Minister responsible for finance;

   "officer" or "public officer" means a public servant employed by the Government or any officer of a Government authority, parastatal organisation or any other Government institution;

   "outputs" means goods produced or services provided;

   "Paymaster-General" means the officer referred to in section 6(7) and vested with the power to control the issue of public money to accounting officers;

   "Permanent Secretary" means the Permanent Secretary to the Treasury;

   "public authority" means a body of persons, whether or not corporate, established by or under any written law, other than the Companies Act *, whose functions are of a public nature and are exercised in furtherance of the public policy determined by the Government;

   "public moneys" include:

   (a)   the public revenues of the United Republic;

   (b)   any trust or other money held, whether temporarily or otherwise, by an officer in his official capacity, either alone or jointly with any other person, whether an officer or not;

   "resources" includes moneys, stores, property, assets, loans and investments;

   "statutory expenditure" means expenditure charged by an Act of Parliament, including this Act, on the Consolidated Fund, but does not include the expenditure of moneys appropriated or granted by an appropriation Act or a supplementary appropriation Act;

   "subsidiary legislation" means any order, proclamation, rule, rule of court, regulation, notice, by-law, instrument or directions made or issued under this Act or other lawful authority;

   "supplementary appropriation Act" means any Act, the purpose of which is to supplement the appropriation already granted by an Appropriation Act;

   "the office" means the public national audit office established by section 26 (1);

   "the Treasury" means the Minister, and includes such officer or officers as may be deputed by the Minister to exercise powers and to perform duties under this Act.

PART II
CONTROL AND MANAGEMENT OF PUBLIC FINANCE (ss 5-17)

(a) Duties and Powers of Minister and the Treasury (ss 5-10)

5.   Control, management and supervision of public finances

   (1) It shall be the duty of the Minister–

   (a)   to develop and implement a macroeconomic and fiscal policy framework for the United Republic and shall, for that purpose–

      (i)   supervise and monitor the finances of the United Republic;

      (ii)   coordinate international and inter-governmental financial and fiscal relations;

   (b)   to advise the Government on the total of resources to be allocated to the public sector and the appropriate level of resources to be allocated to individual programmes within that sector.

   (2) For the purposes of the full discharge of the duties set out in subsection (1), the Minister shall ensure–

   (a)   that full and transparent accounts are from time to time and not less than annually made to the National Assembly indicating the current and projected state of the economy and finances of the United Republic and the fiscal policy of the Government;

   (b)   that systems are established throughout Government for planning, allocating, and budgeting for the use of resources and approve all requests for the issue of public moneys prior to their inclusion in any estimates of expenditure for submission to the National Assembly in accordance with the provisions of this Act; and

   (c)   that the control of the National Assembly over such resources and public moneys is maintained and transparent systems are established and maintained which–

      (i)   provide a full account to the National Assembly for the use of resources and public moneys;

      (ii)   ensure the exercise of regularity and propriety in the handling and expenditure of resources and public money.

   (3) For the purposes of the full exercise of supervision over the finances of the United Republic, the Minister shall, subject to this Act and to any other written law, have the management of the Consolidated Fund and the supervision, control and direction of all matters relating to the financial affairs of the United Republic.

6.   Role of Permanent Secretary and the Paymaster-General

   (1) The Permanent Secretary shall be responsible to the Minister for ensuring the effective application of this Act and any subsidiary legislation made or issued under it.

   (2) For the purposes of discharging the responsibility referred to in subsection (1), the Permanent Secretary may be consulted by Accounting Officers on any matter concerning the application of the provisions of this Act, and he shall promptly appraise the Minister concerning any defect in this Act or any subsidiary legislation which might result in a diminution of control over the assets and finances of the Government, and he may, subject to this Act, give any directions and instructions which he may consider necessary for the safety, advantage, economy and efficient use of public resources.

   (3) The Permanent Secretary shall ensure that–

   (a)   there is established and operated an effective system for the collection of information to ensure that timely and effective preparation of the annual estimates of expenditure for consideration and approval by the Minister and submission to the National Assembly; and

   (b)   such estimates are prepared in conjunction with any general or specific direction of the Minister and reflect, as can best be ascertained at the time, good value for money and the effective use of Government's resources.

   (4) The Permanent Secretary may, by writing under his hand, from time to time require any accounting officer or any entity whose accounts are required by law to be audited by the Controller and Auditor-General or any entity that manages an asset or liability of the Government to supply such information as he considers necessary for the purposes of section 5, and may in such writing specify the date by which and the manner in which the information required is to be provided, and the date specified being reasonable regard being had to the information required.

   (5) The Permanent Secretary and any officer deputed by him, shall be entitled to inspect all offices and to be given access to them at all reasonable times of the day, and be given all available information he may require with regard to the moneys and records in respect of them, so far as may, in any way, be necessary for the purpose of compliance with the provisions of this Act.

   (6) Nothing in this Act or any subsidiary legislation made or issued under it shall be construed as requiring any person to do anything in respect of moneys held on trust which contravenes or is inconsistent with the terms of that trust.

   (7) The Permanent Secretary shall be also the Paymaster-General who shall, in that capacity and subject to the directions of the Treasury, control the issue of public moneys to ministries and departments of the Government, and perform such other functions as the Minister may by regulations under this Act, prescribe.

7.   The Accountant-General

   (1) There shall be an Accountant-General under the Permanent Secretary, who shall be appointed by the President from amongst senior professional accountants and auditors on such terms and conditions as shall be specified in the appointment.

   (2) The Accountant-General shall be responsible to the Permanent Secretary for the compilation and management of the accounts and the custody and safety of the public money and public property of the Government, and for that purpose the Accountant-General may, in the manner prescribed by the Minister, and with the prior consent of the Permanent Secretary, give such instructions of a general or specific character to accounting officers as may be necessary for the effectual implementation of the purposes and provisions of this Act.

   (3) Without prejudice to the generality of the provisions of subsection (2), the Accountant-General shall–

   (a)   specify for every Ministry, division, department, fund, agency or other reporting unit the basis of the accounting to be adopted and the classification system to be used there and ensure that a proper system of account is established in each of them, and that all money received and paid by the Government is brought promptly and properly to account;

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