Local Government Budget Framework Paper Vote: 521 Kasese District Structure of Budget Framework Paper Foreword Executive Summary A: Revenue Performance and Plans B: Summary of Department Performance and Plans by Workplan C: Draft Annual Workplan Outputs for 2014/15 Page 1 Local Government Budget Framework Paper Vote: 521 Kasese District Foreword This Budget Framework Paper 2014/15 is developed following the fiscal decentralization strategy modality. It has 4 major components namely: The Revenue Performance and Plan, the Department performance and Plan by work plan, the Over view of the work plan and expenditure and the draft annual work plan. The annual work plan 2014/15 has key functions under each of the departments with a number of corresponding outputs. The outputs for the FY 2014/15 are classified as standard or non standard depending on the department. This budget framework paper is building on the foundation already started and will continue improving on delivery of services and creating an enabling environment in the district. This will be done in consultation and in partnership with all stakeholders-the public, private and civil society organizations. Already through the participatory planning process, as part of a wider consultation, on the 3rd of December 2013, Kasese District held a budget conference where a wide range of stakeholders participated and enriched this BFP. All these efforts are aimed at fulfilling the district vision of having a "poverty free society" which is in line with the government broad goal as reflected in the National Development Plan and the MDGs. To actualise this, the district has documented a number of strategic outputs for 2014/15 which will be crucial in the attainment of the district vision. And after every three months there shall be a review to establish whether the right direction is being followed. I would once again like to commit the District leadership towards the attainment of these set goals and objectives. We undertake to have this budget framework paper actualized and ensuring that the document is a guiding tool for the year 2014/15 WILLIAM KANYESIGYE - CHIEF ADMINISTRATIVE OFFICER Page 2 Local Government Budget Framework Paper Vote: 521 Kasese District Executive Summary Revenue Performance and Plans 2013/14 2014/15 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 2,659,413 499,240 3,295,972 2a. Discretionary Government Transfers 4,593,000 1,116,197 4,219,657 2b. Conditional Government Transfers 31,840,383 8,895,177 35,271,245 2c. Other Government Transfers 2,504,270 742,337 2,232,007 3. Local Development Grant 1,112,068 281,373 1,097,620 4. Donor Funding 2,591,961 970,387 1,433,570 Total Revenues 45,301,095 12,504,711 47,550,071 Revenue Performance in the first quarter of 2013/14 Local Revenue: By the end of the period July-December 2013, a total of shs. 1,452,159,000 or a 54.6% local revenue budget performance had been realised from local sources which was 5.9% of the total budget realised. The major sources of local revenue included property related duties which brought in shs. 269,641,000 or18.6% of the realised local revenue for the quarter, market fees which brought in a total of shs. 164,446,000 or 11.3% of the total local revenue and local service tax which brought shs. 144,311,000 or 9.9%. Other sources performed poorly due to challenges of enforcement at the lowest levels of collection. Central Government Transfers: Central Government Transfers during the period July-December 2013 amounted to shs. 21,894,521,000 or about 89% of the total budget realised. A total of Shs. 2,232,358,000 or 10.1% came in as discretionary government transfers i.e. the wage and non wage components, shs. 16,612,803,000 or 75.9% were conditional government transfers such as NAADS, SFG, PHC salaries and development, rural water grant, PMG UPE, USE, Secondary capitation etc. Other government transfers accounted for shs. 2,493,326,000 or 11.4% which included grants such as Uganda Road Fund, special funds for procurement of LC bicycles while the local development grant brought in shs. 556,034,000 or 2.5% to fund capital developments and capacity building for staff. Donor disbursements: By the end of December 2013, donor disbursements had totalled to shs. 1,246,011,000 which was 5.7% of the budget realised. A total of shs. 803,750,000 or 71.5% of the donor support came from the Belgium funded Kasese District Poverty Reduction programme which was winding down by end of September 2013, shs. 80,400,000 came from Baylor Uganda to the health sector and the SDS programme brought in shs. 81,940,000 to fund activities in health and community based services. There were no donor remmittances from most donors because they remmittances are not controlled by internal factors at the district. Planned Revenues for 2014/15 The district has projected a total of shs. 47,550,071,000 down from a total of shs. 45,301,095,000 in the FY 2013/14. This represents an Increament of about 5% which is mainly attributed to significant increase in the projections for Gonditional Government Transfers and Locally raised revenues. The projected local revenue resource envelope for the district for the FY 2014/15 is shs. 3,295,972,000 of which about 25.1% will go to the district head quarters while the rest i.e. shs. 2,468,973,000 will be collected by the 3 town councils of Hima, Katwe Kabatoro and Mpondwe Lhubiriha TC and the 23 rural sub counties. Local revenue collections will increase by 23.9.% compared to the FY 2013/14. This will mainly be due to the adjusted indicative planning figure on royalties as expected from the Ministry of Energy. In the FY 2014/15, local Revenue will account for 6.9% of the total projected resource envelope for the FY 2014/15 compared to the FY 2013/14 when it accounted for only 5.9% of the total district budget. The major sources of local revenue are situated in the urban areas as seen from the analysis table that is to say property related dues, royalties, park fees, market and gate collection, Royalities, sale of government produce and local service tax will together account for 81.1% of the total local revenue base for the FY 2014/15. The district has a comprehensive revenue enhancement plan which includes ambitous projects to generate local revenue such as the completion in 2013/14 of a multi purpose social hall to generate revenue for the district. Central Government Transfers: During the FY 2014/15, central government transfers are projected to account for shs. 42,820,529,000 or 90.1% of the total resources available to the district. A total of shs. 4,219,657,000 or 9.9% will come in as discretionary transfers from central government, shs. 35,271,245,000 or 82.4% of the CG transfers will come in as condititonal transfers such as, SFG, PHC etc, shs. 2,232,007,000 or 5.2% will come in as other central government transfers while shs. 1,097,620,000 or 2.6% will come in as the Local Development Grant. Central Page 3 Local Government Budget Framework Paper Vote: 521 Kasese District Executive Summary government transfers to the district will increase by about 6.9% in the FY 2014/15 from shs. 40,049,721,000 in 2013/14 mainly due to confirmed increases in the IPFs for the school facilities grant, secondary schools construction grant and the district un conditional grant non wage. The conditional Grant to Primary Education increased by about 35.2% from shs. 919,222,000 in 2013/14 to shs. 1,243,173,000 in the FY 2014/15, while Conditional Grant to Secondary Education will also increase by 32.5% from shs. 2,170,092,000 in FY 2013/14 to shs. 2,876,420,000. Donor Disbursements: Donor support to the district during the FY 2014/15 is projected at shs.1,433,570,000 or 3.0% of the projected resource envelope which represents a budget support decrease by about 44.7% compared to the FY 2013/14. This is mainly because the Kasese District Poverty Reduction Programme (KDPRP) which has been providing the largest share of the donor support to the district phased out at the end of December 2013. BTC Uganda will however remain a major partner in the health and education sector during the FY 2014/15 under the ICB/BTC programme which will bring shs. 200,000,000. In addition Baylor Uganda which is one of the biggest development partners in the district health sector reduced their indicative planning figures by about 72% in the FY 2014/15. The district will now rely mostly on USAID funded partners who have pledged support to the district come the FY 2014/15. Such partners include STRIDES for Family Health, SDS and Baylor Uganda. Other major donor support will come from Unicef of shs. 329,000,000 or 22.9% of the projected donor support, Baylor Uganda will bring in shs. 200,000,000 or 14.0% and the Strengthening Decentralization programme (SDS) will disburse shs. 635,668,000 or 44.3% of the donor support during the FY 2014/15. Other major development partners such as Save the Children in Uganda and Global Fund have not availed the IPFs to sectors to guide them during the planning and budgeting for the FY 2014/15.