Finance and Planning: i. Finance The outturn for district revenue collection was Shs. 575,429,022 reflecting a surplus of 204 millions. This surplus was as a result of the supplementary release of graduated compensation to the district as compared to the approved budget estimates of Shs. 271 millions. Details of local revenue indicate that despite a slight increase in the district own revenue due to optimal performance from lands and forestry department, there was a general decline in revenue outturns from markets, this is because all the major cattle markets remained closed for almost the whole part of the financial year of 2006/07 due to the outbreak of FMD in the greater part of Kiboga district.
Out-turn on Government transfers, and donor finance was Ug. Shs. 8,161,178,158, representing a 93.4% outturn of the approved budget. The break down was as follows; Source Local Revenue Government Grants Donor funds Total Budget 2006/2007 370,530,376 8,311,765,134 539,339,756 9,221,635,266 Out-turn 2006/2007 575,429,022 7,927,856,412 233,321,746 8,736,607,180 % Outturn 155 95 43 94.7 % to total 6.6 90.7 2.7 100
The outturn on district expenditure was projected at Ug. Shs. 8,311,651,262 representing 90.1% outturn compared to the approved budget. This reflects a near perfect overall performance on expenditure not withstanding the unspent balances on account as at closure of the financial year. The sector strengthened its operations by preparing and submitting monthly accounts, budgets and work plans to the centre in time. The
District Annual Accounts were prepared and submitted. The sector also carried out Support supervision to Lower Local On the other hand the District through the finance sector increased efforts to clear the outstanding debts/Arrears, which helped free the district Assets from attachment by court brokers time and again. The Resource Envelope for 2007/08 The resource envelope available to finance the district’s intended programmes in the financial year 2007/08 is as hereunder: The total amount of resource available in financial year 2007/08 is estimated at Shs. 10,595,435,642= representing an increase of 10% of the financial year 2006/2007. Approximately 92 % of the budget in financial year 2007/08 is to be financed by central government transfers, whilst the local revenue will contribute 4.2 % and donor funds 3.6 % towards the total district budget.
Here below are the projections; Source Local Revenue Government Grants Donor funds Estimates 2007/2008 433,958,050 9,806,467,592 355,010,000 % to total 4.2 92 3.6
Total
10,595,435,642
100
Total expenditure is projected to stand at Ug. Shs. 10,595,435,642 and this amount of money has been earmarked in line with Priority Programme Areas (PPAs) geared at the achievement of PEAP objectives and also address basic strategies to achieve Government objectives as embedded in the National Resistance Movement Manifesto of 2006. Important to note here is that the system of governance as mandated by the Constitution of Uganda 1995 and the LGA 1997 as amended in 2003 is decentralization. Within this Policy substantial power, functions and responsibilities have been devolved to Local Governments. Although the centre had tremendously increased transfers to the LGs, local Governments still have the powers to collect revenue locally. Section 81 of the LGA, 1997 provides that LGs may levy, charge and collect fees and taxes and that each LG shall draw up a comprehensive list of its internal revenue sources as well as maintains data on total potential collectable revenue. Therefore, it is only through increasing locally raised revenue that our LGs can ensure themselves of sustainable funding devoid of any conditions from outside parties as reflected in other sources of funding.
Strategic Priority Action for the Medium term The strategic priorities identified will support the attainment of government objective among which shall include improvement of production hand. and productivity, provision of social services and infrastructure development. This bears in mind the limited resources at
Key actions that the district will undertake: To promote a democratic and accountable good governance. To identify, develop and sustain potential revenue sources in order to enhance the district revenue base. To increase agricultural production and productivity in the district so as to promote food and household incomes. To provide and increase access to quality health services. Regulate, monitor and assess the quality of education service delivery in schools To provide passable and motor able road network in the district through Routine Maintenance, Periodic maintenance, Spot Improvement and Rehabilitation To ensure improved health and quality of life through clean water supply and sanitation facilities Revenue Enhancement Measures 2007/08 Revenue is the life blood of any LG and without revenue it cannot function. It is therefore apparent that for successful implementation of programmes, local Governments need to gather as much revenue as possible. Local revenue is especially important for LGs because it is discretional and LGs have full powers over its utilization. Most grants to any LG will normally come with strings attached. It is not good to continually increase dependence on Government grants and Donor funds to finance our programmes. Therefore as a measure to broaden the district revenue base,
Government has so far identified sources of taxes for local governments to replace graduated tax and the proposed new taxes are;
Local Service tax The local Service tax shall be levied on wealth and incomes of the following a) People in gainful employment b) Self employed and practicing professionals c) Commercial farmers However members of the armed forces, the unemployed persons, peasants or people who are unable to earn minimum income shall be exempted from payment of local service tax. Local Hotel Tax This tax shall be levied on all hotels and lodge rooms occupants Public health Licenses The District intends to formalize and regularize the collection of these fees. These are funds derived from Property Tax Kick starting this program will involve registering and sensitizing property owners on property tax and other provisions of the act, however part of the SEED/LGDP funds to facilitate these exercises under the revenue enhancement strategy were received late.
Charcoal Burning Licenses
Live stock Exit fees Most of the cattle markets were quarantined and therefore in the absence of operational cattle loading sites/markets, the district cannot ably collect revenue from livestock and other related Vet products from farmers who now sell their cattle from kraals and any other places of their convenience.
In order to capture this revenue a new tax measure to be known as Livestock exit fee has been introduced, to be levied on every animal leaving the district at a fee of Shs. 3.000 per head of cattle and 1000/= per goat, sheep and or pig. Livestock licenses The livestock license shall be levied on all cattle trader in the district; The overall expenditure outlook for financial year 2007/08 will be as reflected below: Sector Management and Support Services Finance and Planning Production and Marketing Technical Services and Works Education and Sports Health and Environment Gender and Community Development Council Committees and Boards Natural Resources Donor Funds Total Budget 2007/08 1,880,383,841 161,226,854 440,361,750 978,044,000 4,956,699,492 1,663,718,705 69,842,000 177,861,000 17,861,000 355,010,000 10,595,435,642
ii.
Planning
The sector continued to co-ordinate the LGDP programme which witnessed construction/renovation of a 7 (seven) classroom block at Bukomero Junior School, payment of co-funding for Kiboga House, procurement of 2 computers and payment of land for Kiboga epicenter.
The sector also provided support to district departments and Lower Local Government on participatory planning and development of Sub-county Development plans.
7. Natural Resources Management: This sector is charged with the proper management of our Natural resources including conservation of the environment and proper Land management. The sub-county councils and communities in Nsambya, Butemba, Kibiga, Mulagi, Ddwaniro, Kapeke, Muwanga, Wattuba sub counties and Kiboga Town council were sensitized on formulation of Environmental Bye-laws. This covered 350 farmers in toto 150 farmers were sensitized in sustainable use and management of Forest Resources in Mulagi, Kyankwanzi, Nsambya, Lwamata and Bukomero sub counties. 5 tree nurseries were established in Bukomero, Lwamata and Wattuba Sub counties. 147,500 tree seedlings were planted on various farms amongst the farmer communities in the district. The forestry sector continued to enforce regulations on
cutting/movement of timber and timber products and contributed a total sum of (U) Shs. 58, 085,000= out of the targeted (U) Shs 44,000,000= mainly as revenue collected from issuing charcoal and timber transportation permits.
14(fourteen) tree nurseries were established through assistance of willing tree farmers. During 2006/07 FY the sector successfully organized the World Environment day. Under Land Management 58 applications for land were processed and 48 field surveys were carried out throughout the district.. 8 (eight) survey field inspections to coordinate and ensure standards were carried out. 24 inspection visits to ensure development on leased land were also carried out throughout the district. The achievements in the various Sector were as a result of concerted effort by the various stakeholders namely; Central Government, The District Council, Lower local Governments and other development partners. But more so the beneficiary communities without whose input there would have been little to achieve. 8. Management support services: The sector laid major emphasis on providing support supervision, management support and control and advice to all departments and Lower Local Governments. Through this sector, the District successfully organized and celebrated National and International Days like independence and NRM Anniversary Day. Payment of salaries on time was scaled up with ability to pay salaries by the 28th day of every month save for the month of June 2007 where primary teachers were not paid on time due to non-release of funds by the centre. The district managed to initiate the process of repairing and bringing back on road vehicles that were grounded in various garages in Kampala.
In this regard, the Land cruiser was repaired and is back on road. The pick up (Hilux) and Land Rover are under repair and should be back before the end of August. These should be able to improve on the support supervisory services and the monitoring function of service providers in the district ii. Human Resource Development A total of 133 staffs were restructured during the course of the year and submissions to process staff retirement packages were made to the Ministry of Public Services. Recruitment will therefore be done in a phased manner with priority in only critical posts for service delivery and this is subject to the availability of resources to pay the recruited staff and this will closely be monitored. Against a projected shortfall of 650 teachers from the now revised total ceiling of 1,581, a total of 592, teachers were recruited during 2006/2007 FY. 87 staff mainly from the health sector that had their appointments regularized, managed to access the payroll. 70 (seventy) teachers on trial who are on training at various training colleges had their service contracts renewed. A total of 471 staffs were confirmed in their appointments.