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 2015/16 Page 1 Local Government Budget Framework Paper Vote: 521 Kasese District Foreword This Budget Framework Paper 2015/16 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 wage and enrollment components have also recently been added to enhance budgeting for staff wages and schools. The annual work plan 2015/16 has key functions under each of the departments with a number of corresponding outputs. The outputs for the FY 2015/16 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 11th and 12th of December 2014, Kasese District held a budget and planning meeting 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 2015/16 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 2015/16. WILLIAM KANYESIGYE - CHIEF ADMINISTRATIVE OFFICER Page 2 Local Government Budget Framework Paper Vote: 521 Kasese District Executive Summary Revenue Performance and Plans 2014/15 2015/16 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 3,295,972 497,586 2,951,704 2a. Discretionary Government Transfers 4,219,657 998,204 4,219,657 2b. Conditional Government Transfers 35,271,245 8,096,338 35,271,245 2c. Other Government Transfers 2,232,007 1,783,218 4,445,661 3. Local Development Grant 1,097,620 274,405 1,097,620 4. Donor Funding 1,433,570 208,633 873,833 Total Revenues 47,550,071 11,858,384 48,859,721 Revenue Performance in the first quarter of 2014/15 Local Revenues: By the end of the period July-September 2014, a total of shs. 497,586,000 had been realised from local reevenue sources which was 4.16% of the total budget realised. The major sources of local revenue included other Fees and Charges which brought in shs. 141,506,000 or 28.4% of the realised local revenue for the quarter and Local Service Tax of total shs. 120,796,000 or 24.3% of total Local revenues realised for the Quarter . Others included; market or gate charges particulalrly for urban councils of Mpondwe Lhubiriha TC, Hima Town Council and Katwe Kabatoro TC which brought in shs. 86,564,000, Education/ Instruction related levies of shs. 30,000,000, Property related duties of shs.29,540,000 or 5.9 of the total Local Revenues, Business licences of shs. 16,427,000 or 3.3% of the toal local revenues collected for the Quarter and Royalities shs. 15,737,000. Other sources like Registrtaion of businesses, Rent and rates from other Governnement Units, Rent and Rates-produced Assets-from Private entities, Agency Fees, Land fees, among others performed poorly due to challenges of enforcement at the lowest levels of collection. Central Government Transfers: By the End of the First quarter, a total amount of shs. 11,243,536,000 or 94.1% of the total budget realised had come as central Government Transfers. A total of Shs. 998,204,000 or 88.8% of the Total central Government tranfers for the quarter came in as discretionary government transfers i.e. the wage and non wage components, shs. 8,096,338,000 or 72.0% of the Total Central Government Transfers realised for the Quarter were conditional transfers such as NAADS, SFG, PHC salaries and development, rural water grant, PMG UPE, USE, Secondary capitation, Conditional Grant to Special Grant for PWDs etc. Other government transfers accounted for shs. 1,874,589,000 or 16.7% of the Total central Government transfers which included grants such as Uganda Road Fund, grant from UBOS to facilitate National Population and Housing Census 2014, and other central Government transfers. Local Development Grant accounted for shs. 274,405,000 or 24.4% of the Toatl central Government transfers for the Quarter meant to fund capital developments and capacity building for staff. Donor Disbursements: By the end of September 2014, donor disbursements had totalled to shs. 208,633,000 which was 1.7% of the total budget realised. A total of shs. 53,000,000, or 25.4% of the total Donor fund realised for the quarter came from ICB/BTC, shs. 97,457,000 or 46.0% of the total donor from Unicef, shs. 40,718,000 from Strengethen Decentralisation for Sustainability (SDS), to fund activities in health and community based services. There were no donor remmittances from most donors that is Baylor Uganda, GGP-Japanese, INVISION, Irish AID, and PACE because they remmittances are not controlled by internal factors at the district. Planned Revenues for 2015/16 The projected local revenue resource envelope for the district for the FY 2015/16 is shs. 2,951,704,000. In the FY 2015/16, local Revenue will account for 6.04% of the total projected resource envelope for the FY 2015/16. The major sources of local revenue include among others; property related duties mainly to Hima Town Council from the Hima Cement Plant, park fees mainly for Mpondwe Lhubiriha TC which has large taxi park, market/gate charges from mainly urban markets located in Mpondwe Lhubiriha TC, Katwe Kabatoro TC and Hima Town Council, royalties of shs. 550,000,000 to be shared between the district head quarters and Hima Town Council, sale of (produced) Government Properties/assets, Other sources include: local service tax, agency fees, Business Licences and Registration and other fees and charges. Expenditure Performance and Plans Page 3 2014/15 2015/16 Local Government Budget Framework Paper Vote: 521 Kasese District Executive Summary 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 2,746,573 520,307 2,739,705 2 Finance 1,887,117 274,688 1,787,715 3 Statutory Bodies 1,155,981 243,880 1,138,694 4 Production and Marketing 2,530,380 424,760 2,445,924 5 Health 9,304,837 1,605,436 9,127,330 6 Education 25,346,450 6,155,345 25,219,817 7a Roads and Engineering 1,582,387 401,851 3,596,781 7b Water 994,939 108,268 922,277 8 Natural Resources 342,527 49,420 438,725 9 Community Based Services 1,118,792 291,089 913,955 10 Planning 384,021 1,580,297 399,694 11 Internal Audit 156,067 20,702 129,103 Grand Total 47,550,071 11,676,043 48,859,721 Wage Rec't: 27,511,833 6,770,956 29,316,341 Non Wage Rec't: 15,219,660 4,189,563 14,934,732 Domestic Dev't 3,385,007 506,890 3,734,814 Donor Dev't 1,433,570 208,633 873,833 Expenditure Performance in the first quarter of 2014/15 By the end of September 2014/15, Departments had spent a total of shs. 11,592,913,000 out of a planned budget of shs. 47,550,000 which was 24.4% performance. This was fairly good performance and is mainly attributed to the timely release of most of the projected central government transfers . By the end of September 2014, Administration had realised shs. 520,307,000 or 18.9% of its total departmental budget mainly due to the reduction in the conditional grant wage allocation to the department since every department reported on wages during the 1st quarter for FY 2014/15. Finance realised a total of shs. 252,788,000 or 13.4% which was low due to efficient allocations of resources through other departmental accounts, statutory bodies had spent a total shs. 239,269,000 or 20.7%, Production and Marketing had pent shs. 392,042,000 or 15.5%. This under performnce which is attributed to untimely release funds, a total of shs. 1,610,436,000, had been spent under health, shs. 6,155,345,000 or 12.9 % of the total approved budget had been spent under Education, shs. 440,260,000 or 9.0% of the total approved District budget for the FY had been spent under roads and engineering, shs. 67,628,000 or 0.1% of the Total Budget had been spent under water department, Shs. 44,737,000 or 0.1% of the total District budget for the FY had been spent Natural resources, shs.