Local Government Budget Framework Paper Vote: 622 Bunyangabu District Structure of Budget Framework Paper Foreword Executive Summary A: Revenue Performance and Plans B: Summary of Performance by Department Page 1 Local Government Budget Framework Paper Vote: 622 Bunyangabu District Foreword This first Bunyangabu District Budget Frame work paper has been prepared by Kabarole District as guided by Ministry of Finance Planning and Economic Development basing on the fact that Bunyangabu District has been created out of Kabarole District. I am therefore glad that my technical team being guided by the district council has managed to put up this document for guidance in future planning at district level and also inform Central Government of the intended initial project to be implemented during the first year of Bunyangabu District. I am aware that preparation of this document originated from parish development committees which submitted proposals to their respective sub counties during Sub County budget conferences. Thereafter, detailed budget frame work papers from sub counties were presented and discussed at the District budget conference which was held on the 26th and the 27th of October 2016. In addition, a consultative meeting was held at Kibiito Senior Secondary School on the 28th of December 2016, to ensure that all high priority Bunyangabu District projects are considered and that all major stakeholders are consulted It is from these meetings where technical people captured all the proposed investments. However, due to limitations in funding all proposed investments could not be considered for financial year 2017/18. Accordingly technical officers being guided by the District Executive, selected the pre requisite and most critical investment necessary for the startup and functionality of the new district. These investments are the ones presented in this budget frame work paper. Last but not least I would like to express my sincere gratitude to my technical staff and members of the District Executive Committee who despite their mandatory role of working for Kabarole District have dedicated their precious time to have this Bunyangabu document in place. As already said this document is meant to guide in preparation of next year’s budget, I therefore take this opportunity to encourage all those intending to partner with Bunyangabu to use it for reference purpose. RWABUHINGA RICHARD DISTRICT CHAIRPERSON_KABAROLE Page 2 Local Government Budget Framework Paper Vote: 622 Bunyangabu District Executive Summary Revenue Performance and Plans 2016/17 2017/18 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 0 310,000 2a. Discretionary Government Transfers 0 1,968,972 2b. Conditional Government Transfers 0 10,244,620 Total Revenues 0 12,523,591 Revenue Performance in the first quarter of 2016/17 The district will start in financial year 2017/18 and accordingly there is no any report for financial year 2016/17. Planned Revenues for 2017/18 The District expects to receive a total of 12.473 Billion, Out of this money; central government transfers will contribute 96% of the total budget while Local revenue and donors will contribute 1.7 % of the total budget. UNICEF which has been supporting investments in Bunyangabu county of Kabarole district is expected to continue funding the district however, no formal communication has been received to that effect. Expenditure Performance and Plans 2016/17 2017/18 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 0 0 1,009,242 2 Finance 0 0 90,000 3 Statutory Bodies 0 0 150,000 4 Production and Marketing 0 0 283,324 5 Health 0 0 1,530,775 6 Education 0 0 7,432,513 7a Roads and Engineering 0 0 1,024,181 7b Water 0 0 256,148 8 Natural Resources 0 0 82,971 9 Community Based Services 0 0 368,799 10 Planning 0 0 215,637 11 Internal Audit 0 0 80,000 Grand Total 0 0 12,523,591 Wage Rec't: 0 0 8,154,696 Non Wage Rec't: 0 0 2,909,013 Domestic Dev't 0 0 1,459,882 Donor Dev't 0 0 0 Expenditure Performance in the first quarter of 2016/17 The district will start in financial year 2017/18 and accordingly there is no any report for financial year 2016/17. Planned Expenditures for 2017/18 Grant estimates for FY 2017/18 were based on central government allocations to Bunyangabu District according to land size, population and poverty index. In addition number of lower local governments and administrative areas in the District were used to guide on the allocation of unconditional grant so as to ensure ex gratia and councilors allowance is taken care of. Allocation to departments has been based on activities that are critical for District start up and functionality. Medium Term Expenditure Plans The medium terms plan main focus is on increasing house hold income among the people of Bunyangabu District as an Page 3 Local Government Budget Framework Paper Vote: 622 Bunyangabu District Executive Summary engine of socioeconomic transformation for prosperity leading to economic growth and poverty eradication. During the medium term planning period the district will emphasise the following:1. Value addition of Agricultural products, provision of modern storage facilities and linking farmers to high demand markets with better selling prices. Prices. Challenges in Implementation The major challenge of the District at the start will be limited technical personnel and limited funding options especially for local revenue since most of the major markets that used to generate local revenue have been taken up by town councils. Inadequate office space and means of transport will also be a challenge during the first year of operation. Page 4 Local Government Budget Framework Paper Vote: 622 Bunyangabu District A. Revenue Performance and Plans 2016/17 2017/18 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 0 310,000 Royalties 0 40,000 Property related Duties/Fees 0 116,000 Other licences 0 60,000 Market/Gate Charges 0 20,000 Local Service Tax 0 54,000 Land Fees 0 20,000 2a. Discretionary Government Transfers 0 1,968,972 Urban Unconditional Grant (Non-Wage) 0 91,335 Urban Discretionary Development Equalization Grant 0 29,557 District Unconditional Grant (Wage) 0 932,955 District Unconditional Grant (Non-Wage) 0 454,365 District Discretionary Development Equalization Grant 0 460,760 2b. Conditional Government Transfers 0 10,244,620 Transitional Development Grant 0 520,638 Sector Conditional Grant (Wage) 0 7,221,741 Sector Conditional Grant (Non-Wage) 0 2,153,313 Development Grant 0 348,928 Total Revenues 0 12,523,591 Revenue Performance in the first Quarter of 2016/17 (i) Locally Raised Revenues The District will start in financial year 2017/18 and accordingly there is no any report for financial year 2016/17. (ii) Central Government Transfers The District will start in financial year 2017/18 and accordingly there is no any report for financial year 2016/17. (iii) Donor Funding The District will start in financial year 2017/18 and accordingly there is no any report for financial year 2016/17. Planned Revenues for 2017/18 (i) Locally Raised Revenues Local revenue estimates have been put at 310 millions most of this revenue will come from licenses, markets, local service tax and royalties, property related duities, market charges. (ii) Central Government Transfers The district expects to receive 12.523 Billion shillings from central government. A big percentage (65%) of this money will be for salaries. Education department is the only department that will have conditional grant for capital investment the other departments that will receive conditionals sector grants but not necessarily for development are water health and roads. The district also expects to receive 500 million for start up. (iii) Donor Funding The district has not received any formal communication from a development partner in regard to funding of projects/activities. However it is anticipated that UNICEF which has been funding activities in Bunyangabu county under Kabarole will continue doing so through Bunyangabu distirct. Page 5 Local Government Budget Framework Paper Vote: 622 Bunyangabu District Summary of Performance and Plans by Department Workplan 1a: Administration (i) Overview of Workplan Revenue and Expenditures UShs Thousand 2016/17 2017/18 Approved Outturn by Proposed Budget end Sept Budget A: Breakdown of Workplan Revenues: Recurrent Revenues 0 0 401,011 District Unconditional Grant (Non-Wage) 0 60,340 District Unconditional Grant (Wage) 0 150,955 Locally Raised Revenues 0 80,000 Multi-Sectoral Transfers to LLGs 0 109,716 Development Revenues 0 0 608,231 District Discretionary Development Equalization Grant 0 6,925 Multi-Sectoral Transfers to LLGs 0 101,306 Transitional Development Grant 0 500,000 Total Revenues 0 0 1,009,242 B: Overall Workplan Expenditures: Recurrent Expenditure 0 0 401,011 Wage 0 150,955 Non Wage 0 250,056 Development Expenditure 0 0 608,231 Domestic Development 0 608,231 Donor Development 0 0 Total Expenditure 0 0 1,009,242 Revenue and Expenditure Performance in the first quarter of 2016/17 Department Revenue and Expenditure Allocations Plans for 2017/18 The district wil start operating in FY 2017/18. (ii) Summary of Past and Planned Workplan Outputs Physical Performance in the first quarter of 2016/17 Plans for 2017/18 by Vote Function As the main coordinating department for efficient service delivery, Administration will focus on improving democracy and accountability, supervising and coordinating operations in all departments and LLGs, Coordinating human resource planning, management and development and also recruitment of additional staff. The department will ensure that all salaries are paid, employee records updated and staff trainings coordinated .