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

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