Local Government Budget Framework Paper Vote: 514 Kaberamaido 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: 514 Kaberamaido District Foreword Kaberamaido District Local Government in its five year Development plan is striving to have "A Healthy, Educated, Modern and Prosperous District Population by the Year 2040". The District has made tremendous strides in this direction through socio-economic development programmes implemented since the District's inception in July, 2001. This progress, however, has been very challenging arising from various catastrophes including insurgency caused by the Lord’s Resistance Army (LRA) in 2003, floods in 2007, droughts in the 2008 and 2009 crop seasons, FMD in 2009 and 2014, sleeping sickness in 2010 and poor harvest in the first season of this year 2014. The combination of these and other factors disrupted the livelihood of the local population. This perpetuated poverty in the District as the population lost the means of livelihood. The District has continued to give attention to these issues among others in its plans and budgets. This is apparently yielding fruits in our households; although poverty still remains a fundamental issue in our community and our priority to address. In line with the National Vision to have “A Transformed Ugandan Society from a Peasant to Modern and Prosperous Country Within 30 Years”; the National Development Plan Theme of; ‘’Strengthening Uganda’s Competitiveness for Wealth Creation, Inclusive Growth and Employment’’; and, Government's emphasis on accelerating economic growth for structural transformation, our BFP and budget strategy on the whole shall compliment the Central Gov’t Budget aspirations. These shall be achieved by expending resources in local investments earmarked in our District Dev’t Plan (DDP); and, that promote accelerating implementation of the National Dev’t Plan (NDP) and the Vision 2040. Particularly this BFP is focused on: Infrastructure improvement and development, Revenue enhancement, Promotion of local trade, as well as; Improving budget efficiency, and, Accountability of public resources to transform the life of the District population. This BFP is also geared to improving household food security through rigorous mobilisation of the community for gov't programmes geared towards increased production and productivity. The District recognises the importance of infrastructure maintenance and has taken this into account in this BFP by setting aside resources for this purpose. In our quest to develop the District, we have also put emphasis and earmarked resources in this BFP to improve the delivery of social and supportive services to the District public. As the Decentralisation policy demands, the evolvement of this BFP 2015/2016 has been participatory as witnessed by the budget conference the District LG held on 8th January, 2015. This enabled the District leadership to agree on development priorities for 2015/2016 with stakeholders; and, these have been integrated into our BFP not withstanding the goals and objectives of our five year DDP. On behalf of our District Executive Committee and District Council, I pledge to ensure that the aspirations laid down in this BFP are translated into the annual workplan and budget for FY 2015/2016. Ejoku Albert Anthony District Chairperson Kaberamaido District Local Government Page 2 Local Government Budget Framework Paper Vote: 514 Kaberamaido 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 468,628 109,563 473,687 2a. Discretionary Government Transfers 1,631,968 349,293 1,631,968 2b. Conditional Government Transfers 13,219,611 3,043,205 13,219,611 2c. Other Government Transfers 1,511,059 1,263,034 951,991 3. Local Development Grant 535,211 133,803 535,211 4. Donor Funding 571,464 95,698 582,464 Total Revenues 17,937,942 4,994,596 17,394,933 Revenue Performance in the first quarter of 2014/15 The District realised a total of UGX. 4,994,596,000 by the close of the first quarter representing 28% of the annual target. Out of the total receipts; UGX. 109,563,000 (2.2%) was local revenue, UGX. 95,698,000 (1.9%) donor funds and UGX. 4,789,335,000 (95.9%) Central Government Transfers. Total receipts over performed by 3% vis-à-vis the quarter cumulative target (25%). This is attributed to over transfers of Central Gov't Grants both from the Treasury and Line Ministries. Local Revenue: A total of UGX. 109,563,000 was realised in local revenue. This represents 23% of the annual expected revenue; implying an underperformance of 2% off the 25% target for the end of the first quarter. This under performance arose because nearly all the local revenue items performed below 25% except three items (Local Service Tax, 107%; Tender Fees, 67% and Registration of Business Trading Lincence, 41%). Low performance in local revenue was generally due to: (i) weak enforcement caused by inadequate number of staff especially Parish Chiefs and lack of a protection force to enforce collections, (ii) Negative attitude from tax payers (iii) Inacurate data used in Local revenue estimates (iv) Weak local revenue monitoring systems; and, (v) Failure to board off obsolete LG assets. Donor Funds: A total of UGX. 95,698,000 was realised as donor funds; representing 17% of the expected annual revenue. This implies an under performance of 8% off the 25% target for the end of the first quarter. The underperformance arose because both PACE and Baylor College of Medicine (U) did not remitted funds for the 1st quarter for reasons not communicated to the District. Central Government Transfers: A cumulative total of UGX. 4,789,335,000 was received under Central Government Transfers. This represents 28% which implies an over performance of 3% against the (25%) target for the end of the first quarter. This over performance arose largely because of over transfers from the Central Gov't Treasury, Line Ministries and Central Gov't Agencies in funds for: URF - Feeder Roads Maintence Workshops (229%); NUSAF II (145%); District NAADS Wage (82%); and, Agric. Extension salaries; and, DEO's Operational Costs (29%). While the District planned to receive these funds in tranches of 25% per quarter, the Treasury and line ministries released them in various proportions above 25%. Over transfers of NAADS Wage grants is associated with settlement of severence packages for former NAADS staff whose contracts were terminated while they were still running. As for Agric. Extension salaries, over transfers is associated with Gov't's ehancement of civil servants' salaries especially scientists. In the case of funds from URF, initially at the time of approving the District Budget, URF had not communicated new IPFs thus IPFs for 2013/2014 were used in planning & budgeting. Planned Revenues for 2015/16 The District has forecast to collect a total of UGX. 17,394,933,000 in the FY 2015/2016 for both the higher and lower local governments. This is a reduction 3.0% from the budget of FY 2014/2015. The reduction in revenue forecast is largely due to a reduction in Central Gov’t Grants represented by the decline in Other Government Transfers from UGX. 1,511,059,000 in 2014/2015 to UGX. 951,991,000 in 2015/2016. This reduction is due to exclusion of Page 3 Local Government Budget Framework Paper Vote: 514 Kaberamaido District Executive Summary NUSAF2, Population Census and Unspent balances in the revenue forecasts 2015/2016. The total forecast District revenue is expected to be realized from collections in Local Revenue estimated at UGX. 473,687,286 (2.7%), Central Government transfers estimated at UGX. 16,338,781,714 (93.9%) and Donor Funds estimated at UGX. 582,464,000 (3.3%). The estimates in local revenue have slightly increased to UGX. 473,687,286 from UGX. 468,628,000 (an increase of 1.1%). Donor revenue estimates have on their part increased by 1.9% from UGX. 571,464,000 in 2014/2015 to UGX. 582,464,000. The increase is due to the re-entry of UNICEF which has committed itself to fund immunisation and birth registration in the District. Central Gov't Grants on its part has declined by 3.0%. This decline in the estimate of Central Gov't Grants is attributed to exclusion of NUSAF2, Population Census and Unspent Balances in the revenue forecasts as the former two are expected to wind up. Expenditure Performance and Plans 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 757,211 161,564 707,889 2 Finance 292,345 75,991 305,741 3 Statutory Bodies 518,528 107,802 514,666 4 Production and Marketing 1,006,748 85,153 909,201 5 Health 2,914,657 508,020 2,883,113 6 Education 9,098,147 1,936,325 9,079,420 7a Roads and Engineering 1,438,501 102,010 1,542,937 7b Water 404,966 21,652 374,040 8 Natural Resources 103,316 14,040 101,954 9 Community Based Services 602,260 431,356 629,523 10 Planning 756,628 470,450 302,272 11 Internal Audit 44,634 9,332 44,176 Grand Total 17,937,942 3,923,696 17,394,933 Wage Rec't: 9,557,225 2,007,165 9,557,223 Non Wage Rec't: 4,055,407 1,215,299 3,897,559 Domestic Dev't 3,753,845 651,240 3,357,686 Donor Dev't 571,464 49,993 582,464 Expenditure Performance in the first quarter of 2014/15 A total of UGX.