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LOCAL GOVERNMENT BUDGET CONSULTATIVE WORKSHOP REPORT FY202122.Pdf A REPORT ON THE LOCAL GOVERNMENT BUDGET CONSULTATIVE WORKSHOP FOR THE FY 2021/22 28th September – 16th October, 2020 MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT October 2020 1 Foreword This Ministry conducted the Local Government Budget Consultative Workshops between 28th September and 16th October 2020 as part of the process that kick started the budget preparation process for FY 2021/22. These consultations came at a time when the Country was not only reeling from the effects of the COVID-19 pandemic, but had also just launched the Third National Development Plan (NDPIII), with a focus on Programmatic Approach to planning and budgeting. The FY2021/22 Budget Strategy shall therefore address the Covid-19 associated challenges in pursuit of the medium-term growth and development objectives of the Third National Development Plan. As such, the theme for the Budget of FY2021/22 is Industrialization for Inclusive Growth, Employment and Wealth Creation. This shall further consolidate the development gains, with a central focus on increasing household incomes through a resource-led agro-industrialization drive. These consultative workshops provided an avenue for all Local Government Political and Technical leaders and Civil Society Organizations to discuss widely the Budget Strategy for FY 2021/22 and the National Development Plan III as well as issues that constrained service delivery across all Sectors in Local Governments, with a view to proposing strategies for improvement in the budget for FY 2021/22. Among the outstanding issues raised from these consultations were: the operationalization of newly administrative units especially the newly created Cities and Terego District, the challenges of inadequate financing across the key service delivery programmes like Human Capital Development, Mineral Development, Agro-Industrialization and Development Plan Implementation, among others. In addition, issues were raised in relation to management of local revenue, budget cuts, delays in payment of monthly pension, low staffing levels affecting delivery of services; and salary enhancement for public servants. This report therefore provides the highlights of the issues raised during the Local Government Consultations that can be tackled when finalizing the budget for FY 2021/22 and over the medium term. I believe that proper solutions will be sought by the respective Ministries, Departments and Agencies (MDAs) before the commencement of the next consultative process. Whereas most of the issues raised during the workshops require Central Government intervention, there are some issues that should be handled by Local Governments themselves and/or in partnership with the Civil Society Organizations within their respective localities. I therefore, request that where possible those issues to consider as part of the Budgets for FY 2021/22 should be handled by the respective entities. I am grateful that these consultations came in the first year of implementing the recently launched Third National Development Plan. It is therefore my expectation that, the various Ministries, Departments, shall develop respective Programme Strategic Investment Plans as well as Institutional Development Plans in consideration of the Local Government specific needs and I wish to emphasize Government’s commitment to having a fully consultative budget process which will translate into achievement of the National Development objectives enshrined in the Third National Development Plan (NDP-III). I thank all Honorable Ministers and Members of Parliament, Senior Technical Officers, Development partners, Civil Society as led by CSBAG and all stakeholders who participated in these consultative workshops. Matia Kaija (MP) Minister for Finance, Planning and Economic Development 2 Table of contents Contents Foreword ............................................................................................................................................................... 2 1. EXECUTIVE SUMMARY ........................................................................................................................ 8 2. INTRODUCTION ....................................................................................................................................10 2.1 Background .......................................................................................................................................10 2.2 Objectives of the Workshops ...........................................................................................................10 2.3 Modality of the workshops ..............................................................................................................10 2.4 Facilitators for the Workshop sessions ...........................................................................................11 2.4.1 Presiding Over the Opening Sessions; ...................................................................................11 2.4.2 Workshop Session Chairpersons; ...........................................................................................11 2.5 Participants .......................................................................................................................................11 2.6 Workshop Venues ............................................................................................................................11 2.7 Structure of the report .....................................................................................................................12 PICTORIALS............................................................................................................. Error! Bookmark not defined. 3. PRESENTATIONS AT THE WORKSHOPS .......................................................................................13 3.1 Budget Strategy for FY2021/22 .......................................................................................................13 3.2 National Development Plans and the Annual Budgets .................................................................14 3.2.1 Programmatic approach to budgeting and Planning .........................................................................14 3.2.2 Systems Implementation of NDP III ..........................................................................................14 3.3 The Local Government Investment and Enterprise (LGINE) Framework ................................14 3.4 Guideline on Environmental Safeguards .......................................................................................14 3.5 Guidelines on Implementation of Social, safety and Health safeguards by Local Governments .................................................................................................................................................15 3.6 Improvement of Service Delivery ...................................................................................................15 4. ISSUES AND RECOMMENDATIONS RAISED AT THE LOCAL GOVERNMENT WORKSHOPS ..................................................................................................................................................16 4.1 CROSS CUTTING KEY POLICY AND ADMINISTRATIVE ISSUES AFFECTING SERVICE DELIVERY IN LOCAL GOVERNMENTS ...........................................................................16 4.1.1 Operationalization of New Cities ...............................................................................................16 4.1.2 Budget Adjustments during execution .......................................................................................16 4.1.3 Non-adherence to Budget Guidelines ........................................................................................16 4.1.4 Donations, External Financing and Other Government Transfers from MDAs ........................16 4.1.5 Delayed payment of Salary, Pension, and Gratuity Arrears ......................................................17 4.1.6 Low Absorption of Development Budget ..................................................................................17 4.1.7 Timely responses to issues raised by Parliament .......................................................................17 4.1.8 Asset Management .....................................................................................................................18 4.2 PROGRAMME SPECIFIC CONCERNS AND RECOMMENDATIONS ON SERVICE DELIVERY FY2021/22 .................................................................................................................................18 3 4.2.1 Human Capital Development Programme .................................................................................18 4.1.1.1 Inadequate infrastructure in schools; ................................................................................18 4.1.1.2 Lack of staff quarters in most schools; ..............................................................................18 4.1.1.3 Inadequate infrastructure in Health Facilities ..................................................................19 4.1.1.4 Inadequate equipment in Health Facilities ........................................................................19 4.1.1.5 Inadequate staffing in Health Facilities .............................................................................19 4.1.1.6 Low pay for Health workers ...............................................................................................19 4.2.2 Agro-Industrialization .............................................................................................................20
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