Local Government Budget Framework Paper Vote: 512 Kabale 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: 512 Kabale District Foreword Kabale District Local Government continues to emphasize decentralized and participatory development planning and budgeting process as stipulated in the Local Government Act CAP 243 under section 36(3). Schedule 2 of the Act spell out the roles and responsibilities of the respective Local Governments under the decentralization policy. In line with Government's macroeconomic plan and fiscal strategy, the Local Government Budget Framework Paper outlines district interventions for social and economic development in FY 2013/2014 and the medium term. District macroeconomic policies and expenditure framework programmes are guided by the investment priorities of the National Development Plan and Ministerial policies and strategies. Therefore, the development budget proposals earmarked in this 2013/2014 Budget Framework Paper focus on the key priorities of; Increasing household incomes and promoting equity, Enhancing the availability of gainful employment, Enhancing Human capital, Improving livestock and quality of economic infrastructure, Promoting Science, Technology and Innovation (STI) and ICT to enhance competiveness, Increasing access to quality social services, Strengthening good governance, defence and security and Promoting a sustainable population and use of environment and natural resources in a bid to accelerate Prosperity For All. The Budget is the key instrument through which District implements its policies while the Budget Framework Paper links between District's overall policy plans and the Annual Budget. This policy framework sets out how the District intends to achieve its policy objectives over the medium term through the budget and annual work plan. This policy framework indentifies preliminary revenue projections and expenditure allocation priorities. This sets out the basis for preparation of detailed estimates of revenue and expenditure to be presented to District Council in June 2013. In the medium term, the District will be committed to implement its policies and strategies towards achieving its Mission statement "To serve the Community through the coordinated delivery of services which focus on National and Local priorities and contribute to sustainable improvement of the quality of life of the people in the District". The mission of the district will be achieved based on the following priority interventions that aim at poverty reduction. The district priorities in the medium term will focus on following; Rehabilitation and maintenance of rural feeder roads and bridges, Provision of Primary Health Care minimum packages and other assorted services, Construction of VIP latrines, staff house and classroom blocks as well as supply of iron sheets at primary schools. Protection of springs, construction of rain water harvesting tanks and water jars, construction and rehabilitation of GFSs, construction of Ecosan toilets at RGCs and rehabilitation of non functional boreholes. Expand tax base, identify new sources and maximization of revenue collection. Enhance Human Resources Development through training, attachment and mentoring of LLGs. Protection of children and other marginalized section of the population. Conduct education on land and environmental management issues, Tourism development and enhancement of physical planning. Ensure cross-cutting issues of; HIV/AIDS, poverty, gender, human rights and environment are integrated into development planning and budgeting process. Use of environmental resources in sustainable manner and enhance agricultural advisory services through demonstration and quality farm inputs. The Development Partners of SDS, SUSTAIN, Global Fund, Reproductive health Uganda, Compassion Internal, Marie Stopes, World Vision, UNICEF, SURE, Sunrise, FAO, Star – SW, AIC, Kabale and Kigezi Diocese, CARE international, Nature Uganda, MBIFCT, IGCP and WHO have continuously supported the district in the social services and production sectors. The district receives direct support from SDS, UNICEF, Global Fund and WHO while the rest provide indirect budget support towards implementation of district programs and interventions. I wish to thank all those who worked tirelessly in producing this policy framework, more especially the Heads of Departments and the Budget Desk in particular. On submission of this policy framework, I am appealing to all Development Partners, the District Council, Technical Staff, participating organization and well wishers for concerted effort and resources to make real what has been prepared as activities in this Local Government Budget Framework Paper 2013/2014. Finally, I wish to urge all the elected and appointed officials of Kabale District to use this policy framework as a guiding tool in preparation of 2013/2014 budget estimates of revenue and expenditure and annual work plan. PATRICK BESIGYE KEIHWA CHAIRPERSON/KABALE DISTRICT Page 2 Local Government Budget Framework Paper Vote: 512 Kabale 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 1,542,106 245,726 1,620,211 2a. Discretionary Government Transfers 3,261,821 1,345,785 3,557,410 2b. Conditional Government Transfers 30,453,049 15,366,499 33,991,070 2c. Other Government Transfers 1,078,358 1,191,481 1,265,277 3. Local Development Grant 773,567 367,445 627,529 4. Donor Funding 87,200 394,784 1,098,197 Total Revenues 37,196,101 18,911,720 42,159,694 Revenue Performance in the first Half of 2012/13 The district was able to collect local revenue of Ug. Shs 245,583,750 reflecting only 15.9% performance of the budgeted revenue during the financial year 2012/2013. The district received 51.7% of the budgeted revenue from central government and other government agencies transfers during the financial year 2012/2013. The district also received 1250% of the planned donor funding during the financial year i.e. 394,784,000 against the planned 87,200,000. This over performance of donor funding was caused by receiving global fund which was not planned during the financial year. Planned Revenues for 2013/14 The district is projecting to collect locally raised revenue of Ug. Shs 1,620,211,000 during the financial year 2013/2014. The district is anticipating to receive Ug. Shs 40,606,563,000 from central government of which 68.8% will cater for staff salaries both conditional and traditional staff, 20.5% will finance conditional grants’ activities while 11.7% will be received from other government agencies and 1.6% of the budgeted the central government budget will fund Local Development activities both at district and LLGs levels. The district is in addition also anticipating to receive 1,098,197,000 as donor funding from Global fund and Strengthening Dectralisation for Sustainability (SDS) under Grant A, B, C and WASH Plus project. In total, the district is estimating to receive Ug. Shs 42,159,694,000 from local revenues, central government transfers and donor funding during the financial year of which central government will contribute 93.6%, locally raised revenue 3.8% and donor funding 2.6%. It’s hoped that assumptions put in place will work, donors will commit themselves with the signed agreement and central government will fulfill its obligations as outlined in the budget call circulars. Overall, the district resource envelope is projected to grow by 13.3% from the last year 2012/2013. Also in the resource envelope of the district, unspent balances from the last year were included i.e. Production & Marketing 160,904,612. Health 114,635,622. Statutory Bodies 18,411,279 while General Fund account had 7,303,007. The reasons and the distribution per department are well described in the 4th quarter report and which is in the MOFPED and Kabale District Local Government. Expenditure Performance and Plans 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 1a Administration 1,610,623 577,291 1,822,639 2 Finance 629,476 236,572 647,740 3 Statutory Bodies 1,588,211 345,063 1,735,878 4 Production and Marketing 2,904,495 1,223,996 3,143,996 5 Health 4,763,879 3,182,561 6,450,002 6 Education 22,833,321 11,360,797 25,070,194 7a Roads and Engineering 1,208,135 530,793 1,214,171 7b Water 637,386 238,922 951,173 8 Natural Resources 190,341 74,390 198,578 9 Community Based Services 616,514 159,678 690,283 10 Planning 136,497 53,121 152,094 Page 3 Local Government Budget Framework Paper Vote: 512 Kabale District Executive Summary 2012/13 2013/14 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Dec 11 Internal Audit 80,681 19,979 82,947 Grand Total 37,199,559 18,003,164 42,159,694 Wage Rec't: 23,746,274 11,319,566 27,947,166 Non Wage Rec't: 7,984,914 4,664,568 8,344,524 Domestic Dev't 5,381,170 1,744,211 4,769,808 Donor Dev't 87,200 274,819 1,098,197 Expenditure Performance in the first Half of 2012/13 The department of administration anticipated to receive Ug. Shs 1,610,623,000 but received only Ug. Shs 692,352,000 and was able utilize 691,745,000 indicating 43% budget performance. The expenditure areas included; Formulation of District Policies, Monitoring and Supervision of service delivery, Strengthening Field Administration, Enhancing good Governance for all the councils. Maintenance law and order, Custody of offenders, Information dissemination, News coverage, and Public relations and Human Resource Management. At the end of half year of the financial year, the department of Finance had received 40% of the allocated budget of which all was spent and hence reflecting 100% expenditure performance.