Final Report Local Government Authority (LGA) fiscal inequities and the challenges of ‘disadvantaged’ LGAs in Tanzania Per Tidemand (team leader), Nazar Sola, Alloyce Maziku, Tim Williamson, Julia Tobias, Cathal Long and Helen Tilley • LGAs receive very uneven recurrent grant allocations, in particular salary-related transfers (PE) for basic education, health, and agriculture. • Within LGAs there are similar significant inequities – typically facilities in the periphery of LGAs receive far fewer staff resources than facilities near the LGA centre. • The inequities in fiscal allocations are not only unfair but also lead to substantive inefficiencies in service delivery: a reallocation in favour of relatively underfunded areas will lead to better service outcomes. • Previous strategies to address these problems have only had limited impact. • Recommendations are made for enhanced equity in the central government allocation of staff to LGAs and proposals are made for how to develop and fund local LGA strategies for staff retention, motivation and performance. August 2014