Enhancing Domestic Resource Mobilization Through Non-Tax Revenues: Impact Under the Fifth Phase Government Directive.

Abstract

This paper explores the impact of the fifth phase
government directive on enhancing domestic
resources mobilization (DRM) through non-tax
revenues, focusing on public Institutions and statutory
corporations (PISCs) in Tanzania. In light of ongoing
challenges faced by developing countries in
increasing domestic revenue and the significance of
sustainable financial systems endorsed by the United
Nations Sustainable Development Goals (SDG’s), this
study addresses a notable gap in the literature
regarding the directive’s effects on non-tax revenue in
Tanzania. Employing a qualitative case study
approach, the research examines two Public
Institutions and two Statutory Corporations, utilizing
semi-structured interviews to the selected key
informants and document reviews to gather data. The
findings reveal that the directive has led to increased
tax and non-tax revenue remittances, improved
financial stability and enhanced service delivery,
while highlighting variations in institutional
responses. However, challenges persist, including
inconsistencies in non-tax revenue collection and
underperformance among certain PISCs. Ultimately,
the study underscores the importance of developing
clear frameworks for non-tax revenue generation and
improving institutional capacities to fulfil
government’s resource mobilization objectives, thus
contributing to broader economic resilience and
sustainable development in Tanzania