Uganda Public Expenditure Review Phase 3 AGRICULTURE SECTOR PUBLIC EXPENDITURE REVIEW PHASE THREE: EFFICIENCY AND EFFECTIVENESS OF AGRICULTURAL EXPENDITURES DRAFT Submitted to: Ministry of Agriculture, Animal Industry & Fisheries January 2009 Economic Policy Research Centre (EPRC) 51 Pool Road Makerere University Campus, P. O. Box 7841 Kampala, Uganda Tel: 256-41-541023, Fax: 256-41-541022, Email: [email protected] i Economic Policy Research Centre (EPRC) Uganda Public Expenditure Review Phase 3 1. Executive Summary ...................................................................................................1 2. Summary indicator matrix of all projects and programs.... Error! Bookmark not defined. 3. Introduction..........................................................................................................18 4. Study approaches and methods ............................................................................19 5. North West Smallholder Agricultural Development Project (NWSADP)...........42 6. National Livestock Productivity Improvement Project (NLPIP).........................58 7. Pan African Control of Epizootics (PACE) .........................................................68 8. Farming in Tsetse Controlled Areas (FITCA) .....................................................71 9. Area based Agricultural Modernisation Project (AAMP)....................................75 10. Farm Income Enhancement and Forest Conservation Project (FIEFCOP).......81 11. National Agricultural Advisory Services (NAADS).........................................85 12. Agricultural and Marketing Support Project.....................................................96 13. Non-sectoral Conditional Grant (PMA)............................................................99 14. Agricultural Extension Conditional Grant ......................................................104 15. Dairy Development Authority.........................................................................106 16. Uganda Coffee Development Authority .........................................................111 17. National Agricultural Research Organisation .................................................116 18. National Forestry Authority (NFA).................................................................120 19. Vegetable Oil Development Project (VODP) .................................................123 20. The Fisheries Development Project ................................................................127 21. Support to Irrigation........................................................................................133 22. Northern Uganda Social Action Fund.............................................................137 23. Cotton Development Organisation..................................................................142 24. General perspectives on PETS in MAAIF......................................................144 ii Economic Policy Research Centre (EPRC) Uganda Public Expenditure Review Phase 3 LIST OF FIGURES Figure 1: Funding Flows in the Agriculture sector from Donors through central government and districts to the service providers........................................................41 Figure 2: AAMP expenditure by main components over the years (2002-2008) .......79 Figure 3: Comparison in allocation of funds in Tororo and Mbarara ........................106 iii Economic Policy Research Centre (EPRC) Uganda Public Expenditure Review Phase 3 LIST OF TABLES Table 1: Sample projects by their share in MAAIF development budget and sample districts .........................................................................................................................21 Table 2: Recurrent budget of MAAIF, Shs(m) ...........................................................24 Table 3: Approved wage and non-wage recurrent budget, Shs(m)..............................24 Table 4: Recurrent budget allocations across MAAIF departments, Shs mill.............25 Table 5: Recurrent budget of Headquarters, Shs mill ..................................................26 Table 6: Development and recurrent budget of MAAIF, Shs mill...............................30 Table 7: Economic composition of development budget by sector, Shs(m)................30 Table 8: Proposed MAAIF budget allocations in relation to DSIP proposals .............32 Table 9: Number of cattle distributed and their Performance in various districts ......33 Table 10: shows the performance of Ankole cows and Goats at Ruhengyere Farm ...33 Table 11: Donor and GoU budget allocations in development projects, Shs(m).........35 Table 12: Economic composition of expenditure in the Development Projects, Shs mill ...............................................................................................................................36 Table 13: GoU contributions to the Project, Shs mill ..................................................37 Table 14: Financial transfers to North West Nile districts, 2005/06-2007/08 (Shs‘000) ......................................................................................................................................44 Table 15: Government’s contribution to the total budget of NWADP, (Million) .......44 Table 16: Composition of budgets under NWADP for Moyo district, 2005/06-2007/08 ......................................................................................................................................45 Table 17: Budget break down for Arua district under NWADP..................................47 Table 18:Budget break down of Koboko district under NWADP ...............................48 Table 19: Status of the project performance under different contracts........................54 Table 20: Distribution of beneficiary districts by regions under NLPIP .....................59 Table 21: Flow of funds and agricultural inputs under NLPIP....................................61 Table 22: Government contribution to the total estimated budget under NLPIP.........62 Table 23: Rukindo parish restocking (goats) under NLPIP in Nyakayojo sub-county, Mbarara district ............................................................................................................63 Table 24: Performance of cattle so far distributed under NLPIP.................................64 Table 25: Financial releases of funds and inputs to selected districts in Eastern region ......................................................................................................................................72 Table 26: Government contributed to the total estimated budget ................................72 Table 27: Allocations of funds across different sub-components under AAMP .........76 Table 28: Infrastructure provision under AAMP in selected dsitricts .........................78 Table 29: Funds released to selected districts under FIEFCO project, 2007/08..........83 Table 30: Government contribution to the FIEFCO estimated budget ........................83 Table 31: Funds released to selected districts under NAADS program.......................87 Table 32: Kyamuhunga sub-county detailed budget estimates and expenditure .........89 Table 33: Nyakayojo sub-county budget estimates and expenditure...........................90 Table 34: NAADS support to farmers in Kazo sub-county in Kiruhura district..........91 Table 35: Expenditure trends on ISFG and sub-county advisory services ..................94 Table 36: Comparative unit costs across the projects/programs (Ushs) ......................95 Table 37: Government contribution to the project approved budget ...........................97 Table 38: Funds released to selected districts under PMA, 2005/06-2007/08...........101 Table 39: Financial allocations and performance in selected sub-counties in Arua and Bushenyi district.........................................................................................................103 Table 40: Fund allocations to expenditure items for Mbarara district, 2007/08........105 Table 41: DDA Income and expenditure Statement ..................................................108 iv Economic Policy Research Centre (EPRC) Uganda Public Expenditure Review Phase 3 Table 42: UCDA Income and expenditure by items..................................................115 Table 43: Consolidate income and expenditure statement for NARS/NARO...........118 Table 44: NARO Spending pattern and trends..........................................................119 Table 45: NFA Income and Expenditure ...................................................................121 Table 46: Transfer of funds and inputs to selected districts under VODP.................125 Table 47: Training of farmers by gender and group membership..............................126 Table 48: Government release of funds against the approved estimates ...................134 Table 49: Status of implementation of activities at the scheme.................................136 Table 50: Funds released and its utilization...............................................................136 Table 51: Resource allocation between non-agriculture and agriculture activities ...138 Table 52: Participation levels by gender in selected districts ....................................140 Table 53: Allocation of funds under NUSAF, Pallisa district....................................141 Table 54: CDO Income and expenditure....................................................................143 v Economic Policy Research Centre (EPRC) Uganda Public Expenditure Review