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ARUA BFP.Pdf Local Government Budget Framework Paper Vote: 503 Arua 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: 503 Arua District Foreword Am delighted to present the Arua District Local Government Budget Framework Paper for Financial Year 2013/14. the Local Government Budget framework paper has been prepared with the collaboration and participation of members of the District Council, Civil Society Organozations and Lower Local Governments and other stakeholders during a one day budgtet conference held on 5th March 2013. the District Budget conferences provided an opportujity to intergrate the key policy issues and priorities of all stakeholders into the sectoral plans. The BFP represents the continued commitment of the District joining hands with the Central Government to promote Growth, Employment and Prosperity for financial year 2013/14 in line with the theme of the National Development Plan. This theme is embodied in our District vision of having a healthy, productive and prosperious people by 2017. The overall purpose of the BFP is to enable Arua District Council, plan and Budget for revenue and expenditure items within the given resoruce envelop. Local Revenue, Central Government Transfers and Donor funds, finance the short tem and medium tem expenditure frame work. The BFP raises key development concerns for incorporation into the National Budget Framework Paper. The BFP has been prepared in four sections and offers the key development challenges and strategic objectives of the Arua District Council. It has taken into account the approved five year development plan and Local Economic Development Strategy. WADRI SAM NYAKUA, CHAIRMAN ARUA DISTRICT Page 2 Local Government Budget Framework Paper Vote: 503 Arua 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 1,171,321 534,764 899,556 2a. Discretionary Government Transfers 3,431,383 1,498,561 3,580,934 2b. Conditional Government Transfers 35,724,426 17,170,737 37,257,188 2c. Other Government Transfers 1,030,892 172,491 8,908,104 3. Local Development Grant 1,766,189 838,939 1,445,190 4. Donor Funding 4,403,885 2,603,014 80,796 Total Revenues 47,528,095 22,818,505 52,171,768 Revenue Performance in the first Half of 2012/13 During the first half Arua District collected Shs534, 764,000 as locally generated revenue representing 46% of the planned annual turnover. Market charges, local service tax and animal and crop related charges constituted the biggest source of the revenue for the first half. Market charges on the other hand performed at 32% thus being a major cause of underperformance. This was mainly due to defaults in payment of dues by firms and individuals contracted to collect the revenue. During the first half Arua District received Shs 19,680,728,000 as central government transfers. This accounted for 47% of the planned annual revenue. The performance for discretionary funds was 44% while that for conditional grants was 48%. The major cause of the underperformance was the non-remittance of funds to technical and farm schools. During the first half Arua District received Shs 2,551,329,000 as donor funding. These receipts represented 58% of the planned annual donor revenue. The entire fund during the first half was un spent balances from the previous financial year. There were therefore no new receipts during the period under review. Planned Revenues for 2013/14 Arua District plans to raise Shs 1,171,320,000 as locally generated revenue during the financial year 2013/14. The major sources under this category include market charges which accounts for 49% of total planned revenue. Other major sources include the local service tax and other fees and charges. The proposed revenue for fy 2013/14 remain same as that of fy 2012/13. During the fy 2013/14 Arua District plans to raise Shs 43,120,192,000 from Central Government transfer. This proposed revenue reflects an increament of 3% from that of the previous year. The increment is mainly a result of increase in wages which constitute 55.94% of the total planned revenue. Arua District plans to raise Shs 7,957,171,000 from donor funds during the fy 2013/14. Most of the proposed funds are from the NUSAF 2 project for community subjects. Expenditure Performance and Plans 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 1a Administration 6,666,528 2,760,503 10,293,363 2 Finance 705,132 348,878 687,330 3 Statutory Bodies 1,362,336 515,655 1,304,959 4 Production and Marketing 3,518,196 1,375,479 3,460,525 5 Health 4,660,049 1,879,368 5,465,816 6 Education 25,395,763 12,198,067 26,801,319 7a Roads and Engineering 2,063,582 571,712 1,705,411 7b Water 1,383,627 148,782 847,786 8 Natural Resources 739,386 162,380 228,158 9 Community Based Services 530,905 179,267 558,135 Page 3 Local Government Budget Framework Paper Vote: 503 Arua District Executive Summary 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 10 Planning 392,264 545,023 724,748 11 Internal Audit 110,329 37,182 94,217 Grand Total 47,528,095 20,722,295 52,171,768 Wage Rec't: 25,192,978 11,265,549 28,129,661 Non Wage Rec't: 9,374,409 4,659,284 10,695,403 Domestic Dev't 8,556,823 2,927,511 13,265,907 Donor Dev't 4,403,885 1,869,950 80,796 Expenditure Performance in the first Half of 2012/13 During the first half of Fy 2012/13 Arua District spent a cumulative amount of Shs 21.599 billion 45% of the planned annual expenditure and 95% of the releases. Of the aforementioned expenditure Shs 11.2 billion was on wages; Shs4.7 billion on non wage; Shs 3.1 billion of domestic developmen while Shs 2.4 bilion was on donor development. Planned Expenditures for 2013/14 The district expenditure will continue to be guided by the priorities of the five year development plan. It will continue to support the development of staff through capacity building. To improve on value money the district will intensify monitoring of government projects through political and technical monitoring. Assessment of all business will be done to bill all the tax payers on board. Timely accountabilities will also be done and they will be supported by quarterly audit reports. BBW fight will continue since it is a threat to food security of the district. On capital projects classroom, staff houses for health and latrine construction under education will be carried out. Under roads, district roads will be maintained and reopened to improve on transport network. Under water RWHTs will be constructed plus rehabilitation of GFS. Medium Term Expenditure Plans The district expenditure will continue to be guided by the priorities of the five year development plan. It will continue to support the development of staff through capacity building. To improve on value money the district will intensify monitoring of government projects through political and technical monitoring. Assessment of all business will be done to bill all the tax payers on board. Timely accountabilities will also be done and they will be supported by quarterly audit reports. BBW fight will continue since it is a threat to food security of the district. On capital projects classroom, staff houses for health and latrine construction under education will be carried out. Under roads, district roads will be maintained and reopened to improve on transport network. Under water RWHTs will be constructed plus rehabilitation of GFS. Challenges in Implementation Constant changing IPFs from the Centre-this impacts negatively on implementation, Most sectors are inadequately funded, District staff is not sufficiently motivated in doing their work ie no footage allowance inadequate staffing among other issues, un valued district assets ,Local revenue tenders sometimes collude and bid low, defaulting of some tenders make it hard to realize the budget at 100%. Non release of budgeted funds have led to continous rolling over of un completed projects from year to year. With increasing cost of construction materials the cost of such works continue to increase. Page 4 Local Government Budget Framework Paper Vote: 503 Arua District A. Revenue Performance and Plans 2012/13 2013/14 Approved Budget Receipts by End Proposed Budget December UShs 000's 1. Locally Raised Revenues 1,171,321 534,764 899,556 Miscellaneous 46,483 37487.37 46,483 Advertisements/Billboards 320 0 320 Voluntary Transfers 5,000 52070.764 5,000 Court Filing Fees 320 1981 320 Land Fees 36,858 6960 36,858 Local Hotel Tax 500 2151 500 Local Service Tax 99,000 89700 99,000 Market/Gate Charges 579,263 183102.55 527,554 Other Fees and Charges 257,875 32832.579 37,820 Other licences 8,984 1260 8,984 Registration (e.g. Births, Deaths, Marriages, etc.) Fees 1,000 3655 1,000 Rent & Rates from private entities 10,290 6672 10,290 Agency Fees 320 Rent & rates-produced assets-from private entities 883 Application Fees 67,500 2910 67,500 Locally Raised Revenues 8582 Animal & Crop Husbandry related levies 14,369 85989.63 14,369 Business licences 27,941 17757 27,941 Sale of non-produced government Properties/assets 15,617 450 15,617 2a.
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