Local Government Budget Framework Paper Vote: 511 Jinja 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: 511 Jinja District Foreword It gives me great pleasure to give a keynote statement on the budget framework paper for the FY 2015/2016; the district has moved a long way to attain this level of social economic transformation which has not been a simple task at all. The Budget frame work paper details the district level achievements for every sector for which I am grateful to all the stakeholders. The constraints highlighted therein pose yet another threat to the realisation of the key outputs set, but I have confidence that the strategies designed will be implemented to overcome them. My sincere appreciation goes to the District council, Executive committee, the district Administration staff for their efforts in the production of this document which has been of great help in service delivery and I thank you all. Finally, I wish to thank the Ministry of Finance Planning and Economic Development for developing the OBT soft park and the technical support offered that has simplified the formulation of the document. GUME NGOBI FREDRICK DISTRICT CHAIRMAN. JINJA DISTRICT LOCAL COUNCIL Page 2 Local Government Budget Framework Paper Vote: 511 Jinja 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 4,311,689 3,814,534 1,840,982 2a. Discretionary Government Transfers 2,769,880 692,469 2,769,880 2b. Conditional Government Transfers 27,749,745 6,722,612 26,920,637 2c. Other Government Transfers 1,128,784 654,352 1,067,233 3. Local Development Grant 687,030 171,758 687,030 4. Donor Funding 7,989,660 233,652 759,534 Total Revenues 44,636,788 12,289,378 34,045,296 Revenue Performance in the first quarter of 2014/15 The district collected a total of u.shs 12,289,378,000 of the budgeted 43,807,680,000 representing 28% performance. The variance in planned local revenues and that collected was due to the balances brought forward as unspent balances from the previous year.92% of the planned budget for the quarter was released to the District from other government transfers especially from the Uganda Road Fund. The district has no control over the source of funding since it is controlled by the Uganda Road Fund. The under performance in the donor funds is basically due to the non receipt of UMSD project fund for Bugembe Town council. Negotiations are still ongoing.Of the funds received U.shs 12,164,105 was allocated to the departments and a balance of U.shs 125,363,000 has not been allocated as it still awaits approval of supplementary estimates by council for the extra royalties received from BEL. The overall expenditure performance stands at 60% of the funds received. This is basically due to works sector where a total of Shs 2,700,000,000 for the construction of the District Headquarters has not been utilized as Council is still debating on the location. The salary for NAADS staff was received in September and spent in October 2015. The procurement process for major construction projects in Education. Water and roads was still on going Planned Revenues for 2015/16 The revenue for the District is forecasted to total to u.shs 34,045,296,000 representing a decrease of Ushs 10,591,492,000(24%) as compared to the Budget for the FY 2014/2015. This decrease is due to the one time revenues that are expected in the FY 2014/2015 that will not be received in the FY 2015/2016. These include the unspent balances from the FY 2013/14 carried forward in 2014/2015 of u.shs 3,101,590,000 and the Donor funds of U.shs 7,072,835,000 for Bugembe Town council from UMSD project and UNMCEC project. Of the forecasted revenues, local revenues will be U.shs 1,840,982,000(5.4%), Donor funds 759,534,000(2.2%) and transfers from central government will be U.shs 31,444,780,000(92.4%). The major sources of local revenues will be royalties from Eskom and BEL, Land fees, taxi parks, water user fees for Buwenge TC, and local service tax. Of the total expected bud get for the FY 2015/16, U.shs 21,550,923,000(63.3%) will be spent on wages and salaries and U.Shs 9,115,102,000(26.8) on non wage activities and the balance of U.shs 3,378,592,000(9.9%) on development. Expenditure Performance and Plans 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 1,575,194 701,480 1,482,478 2 Finance 1,017,053 361,055 1,053,553 3 Statutory Bodies 807,884 202,894 762,563 4 Production and Marketing 857,352 37,222 856,672 5 Health 7,236,138 1,012,839 7,063,254 6 Education 19,299,267 4,644,371 19,319,989 7a Roads and Engineering 10,924,140 134,900 1,559,305 7b Water 960,886 76,390 960,886 8 Natural Resources 219,610 50,913 208,769 Page 3 Local Government Budget Framework Paper Vote: 511 Jinja District Executive Summary 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 9 Community Based Services 587,188 72,017 379,188 10 Planning 194,008 28,042 194,008 11 Internal Audit 128,960 31,516 204,631 Grand Total 43,807,680 7,353,638 34,045,296 Wage Rec't: 21,522,449 4,608,034 21,550,923 Non Wage Rec't: 9,100,747 2,361,291 9,115,102 Domestic Dev't 5,194,824 270,821 2,619,737 Donor Dev't 7,989,660 113,492 759,534 Expenditure Performance in the first quarter of 2014/15 The successful implementation of the decentralised policy in Uganda has raised a number of policy concerns one of which is the requirement by Local Governments to have integrated Budget Framework Papers/plans for their areas of jurisdiction. This plan will act as a road map for the district to eradicate poverty by aiming at achieving its Vision and Mission. The district vission is "Prosperous People, Harmonious Communities and Attractive District" while the Mission is that of having "Sustainable Socio-Economic Development through Efficient provision of Quality Services to the people in conformity with Ntaional and Local priorities". Specifically, the district seeks to: Raise the levels of economic and social development, Improve democracy and accountability, Ensure that the Natural resources within the Local Government are sustainably utilised, Identify and collect sufficient revenue to ensure that service delivery standards are met, increase the levels of education and literacy, promote adequate and accessible health services to the people, Ensure that infrastructure facilities including feeder roads, water supplies and public buildings are available at least up to minimum national standards and ensure food self sufficiency and security, and the effective marketing of agricultural products. These specific objectives are set in order to address the challenges facing the district. The major challenges include how to enhance sustainable growth in the incomes of the poor, human development, effective and efficient utilisation of the public resources to facilitate poverty eradication, bureaucratic barriers to investment, poor transport infrastructure and utility services, need to environmental sustainability, low value agricultural produce, inadequate office space, inadequatebteachers accomodation and HIV/AIDS prevalence. In order to achieve the above, the district will have to employ the following strategies, provide land for investment at subsidised costs, grant tax holiday to investors and improve both social and economic concerns, promote access to safe water by encouraging water harvesting, liasing with relevant development partners to allow sinking of boreholes in urban poor settlements, and sensitisation of the communities on hygiene and sanitation, curb the problem of environmental degradation through afforestation, creation of dumping areas and protection of swamps and springs. Provision of more facilities to the Universal Primary education program including provision of school furniture, construction of classrooms, promote marketing of products by reviving cooperative societies, strengthening community producers Associations and diversification of agricultural production, construction of staff accomodation for both primary school teachers and Health workers, open up new roads and maintain existing network through the use of the direct labour force on account system and contracting. Identification and prioritisation of the needs of people with disabilities by all Local councils, ensure retention of the girl child in school by sensitising the public about the relevance of the education of the girl child, protection of the girl child by enforcing laws on defilement, prevention of early marriages and provision of sanitary towels in schools. Planned Expenditures for 2015/16 This Budget Frame work paper has been prepared in line with the national budget where the National Resistance Movement Government’s vision for the future of this country and as a way of addressing the challenges to development being faced by the Nation. Therefore, the theme for this year’s budget is priorities for “Renewed Economic Growth and Development " through; (i )I ncreasing the production of goods and services so that the average standard of living improves rapidly and poverty is correspondingly reduced. (ii )T he Provision of key services to the people of Jinja District i.e.