Despite the mounting concern, Tanzania is currently implementing a local
government reform within the framework of the reform of the civil service
reform.1
Both aim at improving services delivery (URT, 1996). An important
component of the reforms is to increase the fiscal autonomy of local authorities.
This policy is encouraged and partly initiated by the donor community. A key
element in this process is the provision of conditional block grants from the centre
to local authorities. Additional reforms include measures to strengthen local
governments’ revenue raising and measures of revenue sharing between local and
central government.