Vote: 593 Luuka District Structure of Budget Framework Paper

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Vote: 593 Luuka District Structure of Budget Framework Paper Local Government Budget Framework Paper Vote: 593 Luuka 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 2013/14 Page 1 Local Government Budget Framework Paper Vote: 593 Luuka District Foreword The 2013/14 Annual workplan and Performance Contract has mainly focused on effective service delivery and value for money in Luuka District Local Government. This is in accordance with Section 36 of the Local Governments Act 1997 (as amended), where the Local Governments is mandated to prepare appropriate plans and documents in conformity with Central Government guidelines and formats. Pursuant to Section 36 referred to in the foregoing, Luuka District Local Government has prepared this Annual Workplan and Performance Contract for the period 2013/14 in a transparent consultative process right from budget conference where all the stake holders like the Development partners, technical staff,political leaders,and the general community were involved before consolidation. This document brings out problems facing the district like ;Poor service delivery due to low local revenue collections,the district local revenue contribution is still low (0.5%). Low standsrds of health and the related facilities: only 44% of mothers attending antinental care,Infant moterlity is at 70 and moternal mortality at 116,HIV/AIDS prevalence at 2.8%, Low use of family planning at 24% leading to 7.7 fertility rate,high prevelance of malaria contributing to over 50% of OPD cases. In Education there are few and poor infrustrure, few teachers,classrooms pupil ratio at high, Pupil stance ratio at 105:1,Pupil desk ratio at 9:1, text book pupil ratio at 1:12 ; dropout rates at primary 2.9%,PLE pass rate very poor, and teacher attendene rate of 87 % thus the low standards. Sanitation is still poor with 46% latrine coverage,safe water coverage at only 68% with average walking distance to safe water point as 3km. The roads are still in poor conditions especially in the rural areas,a lot of umemployment especially among the youths. Some political conflicts among leaders tend to undermine mobilisation for development . The OVC situation is pathetic with 73.9% living in poverty stricken house holds while 71% are faced with food insecurity. In a way to improve on the above situation,the district has planned to do the following; Encouraged people to diversify from sugar cane growing to Coffee and other fast growing crops, farmer groups to be facilitated with farm inputs under NAADS,plus formation of SACCOS to access micro finances for small business developments.In education,intensified supervision ,monitoring and inspection of schools and facilities,construction of classrooms,provision of furniture and recriutment of qualified staff is an attempt to improve on education standards. In health, recriutment of more qualifed staff has been done to address the big problem of staff shortage but this is limited by the wage bill thresh holds. Construction of Health Centres II and staff houses is another under taking as well as financing or allowing staff go for further training has been promoted to build the capacity of the health staff. Mobilisation and sensitzation of stake holders involved in the tax collection and management is on going but calls for a good combination with good Local Revenue Internal Control System. The orientation of political leaders on their roles and responsibilities has helped to reduce on the conflicts and promoted team work. My sincere appreciation goes the the budget desk that led the effort to put this document together in union with the various stake holders especially the technical staff,political leaders,and the development partners. The information in this document can be used by the varoius development stake hoders in planning,budgeting for and providing services to the district especially by closing the reource and service gaps the document indicates. Denis Ssebunya Ag. CHIEF ADMINISTRATIVE OFFICER - LUUKA DISTRICT. Page 2 Local Government Budget Framework Paper Vote: 593 Luuka District Executive Summary Revenue Performance and Plans 2012/13 2013/14 Approved Budget Receipts by End Proposed Budget December UShs 000's 1. Locally Raised Revenues 51,000 22,904 81,613 2a. Discretionary Government Transfers 1,302,556 467,554 1,416,379 2b. Conditional Government Transfers 10,664,285 5,249,292 12,009,142 2c. Other Government Transfers 468,559 229,680 431,579 3. Local Development Grant 399,077 189,561 421,164 4. Donor Funding 100,000 0 99,603 Total Revenues 12,985,478 6,158,991 14,459,479 Revenue Performance in the first Half of 2012/13 Luuka District has a 2012/13 approved Budget of shillings 12,985,478,000/=. By the end of second quarter, shillings 6,032,145,000/= representing 46% of the approved Budget had been transffered to Luuka District. Funds received from the centre were transffered to the respective beneficiary departments for implementation of the Budgeted activities. Bellow is the breakdown of funds received by source by end of second quarter; Locally raised revenue- 22,904 51,000/=, Discretionary Government Transfers- 429,425,000/=, Conditional Government Transfers - 5,160,575,000/= Other Government Transfers - 229,680,000/= and Local Development Grant 189,561,000/=, Under donor funding, Star - ec implemeted planned activities directly. Funds were not transffered to Luuka District. Overall, by the end of second quarter, 46% of the budgeted funds had been transffered to Luuka District, which is slightly bellow average. This was caused by Low transffer of Urban Unconditional Grant - Wage (3%) and District Unconditional Grant - Wage (32%) to Luuka District stemming up from delayed recruitment of staff in Town council. Other factors causing budgetary performance bellow average were non transffer of a Conditional grant to extention workers for second quarter. Generally, transffers to Luuka District by end of second quarter was slightly bellow average as a result of budgetary cuts by the centre, Overall actual received stood at 46%. Planned Revenues for 2013/14 Luuka District Local Government anticipate to operate under a Budget of shillings 14,459,479,000/= in the Financial year 2013/2014 slightly higher than the Budget cealing for Financial year 2012/2013 by 11.4%. Anticipated increase in local revenue budget from 51,000,000/= to shillings 81,613,000/= in the financial year 2013/2014 representing an increase of 37.5% is expected to contribute to increase in revenue for financial year 2013/2014. This anticipation is as a result of mobilisation of local revenue through implementation of 2012/2013 Luuka District revenue enhancement plan where all bussiness entities in the whole District have been registered and sensitised to change their attitude to the positive side towards payment of taxes and council's resolution to levy a tax on all sugar cane trucks ferrying sugarcanes to sugar factories from/through Luuka District. Increase of Discretionary Government Transfers from 1,302,556,000/= to 1,416,379,000/= will contribute to increase in revenue for financial year 2013/2014 stemming up from increase in IPFs for District Unconditional Grant - Non Wage from shillings 359,951,000/= to 439,516,000/=, District Unconditional Grant - Wage from 750,151,000/= to 780,157,000/= . Overall, Discretionary Government Transfers is expected to increase by 9.2% in the financial year 2013/2014. Under Conditional Government Transfers, Luuka District anticipates to operate under a budget of shillings 12,009,142,000/=, which is higher by 11.2% of the 2012/2013 budget cealing of 10,664,285,000/=. This increase is attributed to the anticipated increase in Conditional Grant transffers to all categories of salaries to Luuka District in the financial year 2013/2014. Overall, increase in budget for financail 2013/2014 is anticipated to raise by 10.2%. Expenditure Performance and Plans 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 1a Administration 820,619 301,451 1,218,407 2 Finance 185,676 95,165 193,680 3 Statutory Bodies 353,428 110,386 302,687 Page 3 Local Government Budget Framework Paper Vote: 593 Luuka District Executive Summary 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 4 Production and Marketing 952,532 426,126 1,022,155 5 Health 1,167,088 440,602 1,507,505 6 Education 8,122,168 3,808,123 8,992,740 7a Roads and Engineering 537,976 218,471 461,250 7b Water 516,866 49,246 509,866 8 Natural Resources 18,208 5,910 21,498 9 Community Based Services 205,468 82,929 108,899 10 Planning 66,418 24,928 81,120 11 Internal Audit 39,031 12,529 39,672 Grand Total 12,985,478 5,575,866 14,459,480 Wage Rec't: 7,637,004 3,594,435 8,595,280 Non Wage Rec't: 2,661,847 1,279,880 3,467,722 Domestic Dev't 2,586,627 701,551 2,296,874 Donor Dev't 100,000 0 99,603 Expenditure Performance in the first Half of 2012/13 Luuka District has a 2012/13 approved Budget of shillings 12,985,478,000/=. By end of second quarter, shillings 6,033,392,000/= representing 46% of the approved Budget had been transffered to Luuka District. Funds received from the centre were transffered to the respective beneficiary departments for implementation of the Budgeted activities. The balance on the General collection account (1,137,790) was for money collected from civil servants and Politicians to print Luuka District identity cards for all Politicians at District level and civil servants working in Luuka District.
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