Fiscal rules—permanent quantitative constraints on government finances—are an important tool to help mitigate the macroeconomic challenges associated with managing natural resource revenues. This paper sheds light on large gaps in compliance and oversight of fiscal rules, and provides policy recommendations on how fiscal rules can be further strengthened.
The weaker price outlook has plunged potential investments in Tanzania’s promising offshore gas sector into uncertainty, and reduced the likelihood that gas will have a major impact on Tanzanians’ well-being. This revised outlook also impacts important policy decisions the government must make about the management of public finances.
The Tanzanian government and a consortium of companies are negotiating a host government agreement that will govern a game-changing liquefied natural gas (LNG) plant and be a significant part of the regulatory framework governing the entire offshore gas sector.