The report evaluates the efficiency and effectiveness of budget support, as an aid modality, in Tanzania over 1995 to 2004 and assesses its contribution to the processes of growth and poverty reduction over this period. It includes a summary of the wider lessons which emerge from the experience as well as a set of recommendations, more specific to Tanzania, for improving the management arrangements for budget support. In this version, it incorporates editorial changes and minor amendments made in response to the comments received on the draft final report competed in November 2004.

The report is the culmination of an interactive evaluation process which was carried out over four months (August – November 2004) and included two interim outputs – an Inception Report and a “Phase 2 Report”, containing a preliminary assessment. The feedback received on this earlier work from stakeholders in Tanzania was an integral part of the process. Further comments on the draft Final Report have permitted some useful amendments and improvements to this, the final evaluation product.