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Vote: 509 Hoima District Structure of Budget Framework Paper

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Vote: 509 Hoima District Structure of Budget Framework Paper Local Government Budget Framework Paper Vote: 509 Hoima 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 2014/15 Page 1 Local Government Budget Framework Paper Vote: 509 Hoima District Foreword Delivery of services to the community of Hoima District is the prime responsibility of Hoima District Local Government. The Constitution of Uganda provides for decentralized local governance and that power belongs to the people. This also means that each one of us in the district has a responsibility to plan, mobilize and participate in the development process of the district to improve the socio-economic well-being of our people especially the rural poor. The budget is the key instrument through which Government implements its policies, and the Local Government Budget Framework Paper (BFP) is a key link between Hoima District Local Government's overall policies and the annual budget. The purpose of this document is to set out how the District Local Government intends to achieve its strategic objectives over the medium term through the budget. In doing so, framework presented in the BFP forms the basis of resource projections and indicative expenditure allocations. It also forms the basis of detailed estimates of revenue and expenditure which will be laid before Council. This year's LGBFP incorporates the LLGs budgets and priorities for their own resources either locally generated or as multi sectoral transfers from the district and other sources of funding. The LGBFP has three sections: Part 1 sets out the District's revenue performance and indicative revenue plans and framework; Part 2 sets out the District Departments performance and plans for social and economic development and indicative expenditure framework in FY 2014/15; and Part 3 of the Local Budget Framework Paper provides detailed proposed Departmental Annual Work plans Outputs for the FY 2014/15 The District is very pleased to release this Budget Framework Paper for FY 2014/15. We are aware that provision of additional resources will be done on a competitive basis. I therefore urge the stakeholders and more especially the Heads of Departments to articulate the issues to be submitted to the sectors to enable us seek additional funding by providing strong justification on account of well costed activities and clear outputs. We acknowledge the technical assistance offered by the Ministry of Finance, Planning and Economic Development through the Output Budgeting Tool and regular consultations. To all our partners and stakeholders including the District Council, all local councils at various levels, the district heads of departments, the CSOs, the line ministries and the Hoima community we highly urge you to use this Budget Framework as a guide to plan for the delivery of services to the people of Hoima district and we hope you will find it very useful. I wish to thank all departments and individuals who contributed to putting the Hoima District Local Government Budget Framework Paper 2014/15 together. In particular, I thank the Planning Unit for spearheading the LGBFP formulation exercise and those who attended the Budget Conference. I sincerely hope that the information in this BFP will greatly contribute in mobilizing all people living in Hoima to participate in the development of the district. George Tinkamanyire Bagonza District Chairperson Page 2 Local Government Budget Framework Paper Vote: 509 Hoima District Executive Summary Revenue Performance and Plans 2013/14 2014/15 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 1,044,536 127,473 1,098,316 2a. Discretionary Government Transfers 2,078,727 513,941 2,405,948 2b. Conditional Government Transfers 15,366,949 3,875,049 15,994,059 2c. Other Government Transfers 1,753,236 451,352 2,731,709 3. Local Development Grant 803,974 200,994 784,522 4. Donor Funding 242,241 0 242,241 Total Revenues 21,289,664 5,168,809 23,256,795 Revenue Performance in the first quarter of 2013/14 Revenue Performance Ushs. 10,394,064,000,000 out of Ushs. 21,289,669,000 (49%) was realized as at the end of December 2013. The shortfall of about 1% of the projected revenues was mainly due to poor performance in donor funding and some sources of locally raised revenues. Local revenues are expected to remain at the current realization rates arising from no major anticipated collections and new sources. Local revenue collections for the period July 2013 to December 2013 were about Ushs. 470 million which was about 45% of the planned locally raised revenues. The major source of the underperformance was property tax, rent and rates, animal and crop levies, forestry, local hotel tax and business licenses. The weakness of tax revenue collections during the first three months in part reflects the weakening capacity of contracted revenue collectors and of chiefs to monitor revenue collection. This low revenue performance is a challenge which impacts on the budget financing, implementation and achievement of the District Development Plan (DDP) objectives. Planned Revenues for 2014/15 Resource Envelope for FY 2014/15 Total resource inflows in Financial Year 2014/15 will amount to Ushs. 23,256,795,000 representing an increase of Ushs 1,366,795,000 (6.2%) despite a decrease of SFG funds. Locally raised revenue for the District , will amount to Ushs 1,098,316,000 out of which Ushs. 670 million is for the District Local Government and 428 million for lower local governments which is projected to increase by 5% from the levels of FY 2013/14. This will contribute only 4.7% of the total budget of the district, donor funding is also projected to remain constant at Ushs. 242 million (1.1%) because donors have adopted project direct funding modality. All the Central Government Grants total to Ushs. 21,916,238,000. Taking into account the total recurrent expenditure (wage and non wage) projected at Ushs. 20,512,150,000 which is 88.2% of the budget, the increase is mainly to cater for the salary enhancement; the overall resources available for the development budget will amount to Ushs. 2,502,404, 000 posting a reduction of Ushs 1,107,778,000 from that of Ushs 3,610,182,000 excluding donor funding of Ushs. 242,241,000 for which the District Local Government has no control, the resource envelope to meet the DDP objectives and interventions in FY 2014/15 amounts to Ushs. 2,744,404,000. Therefore, compared to the level of financing of the FY 2013/14, there are less resources in the FY 2014/15 for the physical development projects accounting for only 11.8%. The reduction in development budget is mainly due to reduced funds under NAADS because of the paradigm shift in the implementation modalities where the bulk of the money will remain at the NAADS secretariat for inputs acquisition, there was also a remarkable decrease on the funds for the School Facilities Grant (SFG) because the staff houses component was removed. Expenditure Performance and Plans Page 3 2013/14 2014/15 Local Government Budget Framework Paper Vote: 509 Hoima District Executive Summary 2013/14 2014/15 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 927,691 216,758 2,093,881 2 Finance 601,627 137,175 463,127 3 Statutory Bodies 712,356 116,975 699,047 4 Production and Marketing 2,149,525 658,925 846,227 5 Health 4,395,731 869,873 4,233,477 6 Education 9,899,524 2,526,302 11,610,182 7a Roads and Engineering 1,160,029 136,899 1,295,783 7b Water 514,690 109,193 501,250 8 Natural Resources 202,070 26,460 107,850 9 Community Based Services 403,941 83,498 292,412 10 Planning 207,202 43,850 1,051,117 11 Internal Audit 115,280 23,461 62,443 Grand Total 21,289,664 4,949,369 23,256,795 Wage Rec't: 11,637,032 2,726,286 13,209,762 Non Wage Rec't: 5,800,209 1,234,075 7,302,388 Domestic Dev't 3,610,182 986,574 2,502,404 Donor Dev't 242,241 2,434 242,241 Expenditure Performance in the first quarter of 2013/14 Overall expenditure for the 6 months of the fiscal year amounted to Ushs. 10,172,448,000 mainly because of delayed start of many capital development projects. There was a delay in the procurement which was at display of award due to a delay in the Contracts Committee members approval. As a result, the overall deficit was lower than programmed by Ushs. 14.13 billion (including the amounts that were released directly to the beneficiaries like capitation grants and salaries). Budget execution was strong all the sectors with few capital development, the lowest absorption was in Natural Resources and Community Based Services with 7.7% and 22.4% respectively. Whereas absorption was high across the three major expenditure classifications (consumption - cost of employees and other expenditures, investments and transfers to lower local services) at the district, quarter year performance indicates that absorption for investment related spending was lowest compared to other categories. Planned Expenditures for 2014/15 The main objective of the budget for FY 2014/15 will be prioritizing interventions to promote economic growth and increase the revenue collections for the district. Therefore in line with the objectives of DDP the priority interventions of the Budget Strategy for FY 2014/15 will be in the following areas: 1.
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