MOTION SEEKING COUNCIL TO ADOPT AND DISCUSS COMMITTEE REPORTS FOR APPROVAL OF THE REVENUE AND EXPENDITURE ESTIMATES AND WORK PLANS FOR THE FY 2018/19
Mr. Speaker Sir,
The Local Government Act Cap 243 as amended part IV Section 35 Sub Section 1. “The District Council shall be the Planning Authority of the District.”
In addition, the same act, Section 83 (4) requires that the District Chairperson shall present before this Council the Revenue and Expenditure Estimates for every FY for the Council to approve. Accordingly Mr. Speaker, am performing this duty on behalf of the District Chairperson. This budget process has gone through a consultative process as espoused in the harmonized participatory planning guidelines for local governments and the Public Finance Management Act 2015.
Mr. Speaker you will recall that this budget was laid on the 22nd day of February 2018. On that day, the annual work plan for the FY 2018/19 was also laid and sector allocations were highlighted. After laying the budget, council dissolved into sectoral committees to discuss their respective sectoral budgets and work plans a process that was conducted on 10th, 11th and 14th May 2018 for Social Services, Works and Production and Finance & Planning Committees respectively. Later on 18th May 2018, the Finance, Planning & Administration Committee in view of her mandate sat to harmonize the priorities as agreed on in all the Sectoral Committees.
Mr. Speaker Sir, during the Committee sittings the Heads of Sectors presented details of the work plans and budgets for FY 2018/19 for discussion and recommendation to Council. In addition the Finance Committee discussed the extracted Integrated Capacity Building Plan, the Procurement and Revenue Enhancement Plans for the FY 2018/19 hence adoption of its report will also by extension mean approving these important budget extracts for the FY 2018/19.
Budget Performance 2017/18
Mr. Speaker the approved budget including supplementaries for the FY 2017/18 was as below:
Source Budget 2017/18 Actual at May 2018
Locally raised revenues 1,916,370,000
Central Gov’t Transfers 53,097
Council recognizes local revenue collected and spent by the lower local governments. This is because the district accounting system cannot capture the 65% retained by the Sub Counties and 100% by the urban councils.
Estimates of Revenue and Expenditure for FY 2018/19
Mr. Speaker Sir, the total budget as laid was shs. 55,401,344,982 (fifty five billion four hundred one million three hundred forty four thousand nine hundred eighty two) projected from the following sources;
- Locally raised revenues 1,592,615,000
- Central Government Transfers 51,285,128,082
- Donor funding 2,523,601,900
However the local government planning and budgeting cycle is a continuous process and involves changes in the indicative planning figures to LGs from the central government, donors and local revenue projections by the district budget desk. During the period March-April 2018, Central Government announced a number of policy changes in third budget call circular for FY 2018/19 including the wage enhancement for science cadres. As a result the total district wage has increased from shs. 33.7 bn to shs. 39.5 bn. Also additional revenues have come from enhanced sector development grants particularly Health and Education. Thirdly government in net terms has increased the Uganda Road Fund allocation by 50.8% to shs. 4,141,607,000 including the projected emergency funding.
As a result, the total budget for the district for the FY 2018/19 as discussed by the Sectoral Committees of Council during the month of May is Ug. Shs. 67,763,480,000 (Sixty Seven billion Seven hundred Sixty Three million Four Hundred Eighty Thousand only) which will come from the following sources;
- Locally Raised Revenue 1,852,615,000
- Central Government Transfers 63,911,264,000
- Donor funding 2,533,601,000
Total shs. 67,763,480,000
Mr. Speaker Sir, as seen from above, local revenue will constitute about 2.7% of the total projected revenue, central government transfers will account for 93.6% while donor disbursements will constitute about 3.7%. Significantly Mr. Speaker we have continued to budget for Unicef support despite poor performance during the FY 2017/18 because the organization has indicated that they will support the district again.
Mr. Speaker Sir, we are aware of the priority areas of Government as outlined in the Second National Development Plan. Consequently we have allocated funds keeping in mind the government priority service areas as below;
|· Administration||Shs. 13,601,799,689|
|· Finance||Shs. 330,828,000|
|· Statutory Bodies||Shs. 1,052,811,000|
|· Production & Marketing||Shs. 1,669,683,880|
|· Health||Shs. 9,973,495,721|
|· Education||Shs. 30,153,182,329|
|· Roads and engineering||Shs. 4,540,720,480|
|· Water||Shs. 813,574,500|
|· Natural resources||Shs. 673,919,897|
|· Community Based Services||Shs. 1,641,825,788|
|· Planning||Shs. 696,281,309|
|· Internal Audit||Shs. 60,000,000|
|· Transfers to LLGs||Shs. 2,555,357,407
Total Shs. 67,763,480,000
Mr. Speaker Sir, a total of shs. 39,465,584,000 or 58.2% of the projected resource envelope will go towards payment of salaries for staff, shs. 20,039,197,000 or 24.9% of the revenue will go towards recurrent activities including pension and gratuity to support decentralization and key service delivery projects, shs. 8,867,515,000 or 13.1% of the revenue will go towards capital development projects particularly in the areas of health, education, roads and production, shs. 2,533,601,000 or 3.7% of the budget will go towards donor development projects particularly in the departments of health, community based services, education and water.
I have noted Mr. Speaker Sir, that some departments did not capture departmental Wage/Salaries when presenting to Committees. This explains some of the variations in budget totals from some departments compared to what was presented in the committees. There is a tendency to think that salaries are obvious. I have accordingly cautioned all departments to in future present wage as part of the monies for appropriation by members. The budget figures and projects are in line with our Budget Framework Paper for the FY 2018/19 as submitted to the Ministry of Finance, Planning and Economic Development and have been aligned to our 2nd five year development plan FY 2015/16-2019/20.
Mr. Speaker Sir, mobilizing the community for additional revenue is our constitutional obligation and patriotic duty. We must all engage in the noble duty to mobilize for more revenues for our council if we are to meet and attain our development goals and aspirations.
Mr. Speaker Sir, I propose that council dissolves into a committee of supplies to adopt, discuss and approve the recommendations of the Standing Committees of Council and as such approve the Revenue Estimates and Expenditures and Work plans for the FY 2018/19.
Mr. Speaker, I beg to move.
Ntabose Gideon Sanyu
VICE CHAIRPERSON/SECRETARY FINANCE, PLANNING AND ADMINSTRATION