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CIVIL SOCIETY BUDGET ADVOCACY GROUP (CSBAG)

KIBAALE DISTRICT LOCAL GOVERNMENT BUDGET GUIDE FY 2013/14

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Budgeting

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Budget Guide

Civil Society Budget Advocacy Group

Kibaale District Local Government Budget GuideFy 2013/14

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Kibaale District Local Government Budget Guide FY 2013/14 was produced by the Civil Society Budget Advocacy Group (CSBAG) with support from Democratic Governance Facility. The contents of this publication are the responsibility of CSBAG and not of our development partners.

© 2013

Civil Society Budget Advocacy Group (CSBAG)P.O. Box 660, NtindaPlot 15 Vubya Close, Ntinda Nakawa Rd Fixed Line: +256-41-286063, Mob: +256-755-202-154E-mail: csbag@csbag.org Web www.csbag.org | @CSBAGUGANDA CSBAG/Facebook.com

All rights reserved. No part of this publication may be reproduced, or reprinted in any form by any means without the prior permission of the copyright holder. CSBAG encourages its use and will be happy if excerpts are copied and used. When doing so, however please acknowledge CSBAG.

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Table of Contents

List of Tables .................................................................................................................................. 4

List of Figures ................................................................................................................................. 4

Acknowledgement .......................................................................................................................... 5

Foreword ...................................................................................................................................... 6

Introduction ................................................................................................................................... 7

1.0 Geographical Location and socioeconomic status of Kibaale District ........................................... 8

2.0 What is a budget? ................................................................................................................. 9

2.1 Decentralization in Uganda ............................................................................................... 9

2.2 District Revenue Sources ....................................................................................................... 9

2.3 District Expenditures Allocations .......................................................................................... 10

3.0 Comparing performance measurements for revenue and expenditure ........................................ 12

4.0 Overview of expenditure allocations within selected key sectors .............................................. 15

4.1 Production and Marketing ................................................................................................... 15

4.2 Health sector ..................................................................................................................... 16

4.3 Education Sector ................................................................................................................ 17

4.4 Roads and Engineering sector .............................................................................................. 18

4.5 Water ............................................................................................................................... 19

5.0 Role of citizens in the budget making process ........................................................................ 21

6.0 Glossary ............................................................................................................................ 23

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List of Tables

Table 1: Components of Development Expenditure in Production and Marketing sector (Shilling in ‘000s and % share) ........................................................................................................................................... 16

Table 2: Components of Development Expenditure in the Health sector (Shilling in ‘000s and % share; FY 2013/14) .......................................................................................................................................... 17

Table 3: Components of Development Expenditure in the Education sector (Shilling in ‘000s and % share; FY 2013/14) ..................................................................................................................................... 18

Table 4: Components of Development Expenditure in the Roads and Engineering sector (Shilling in ‘000s and % share; FY 2013/14) ............................................................................................................... 19

Table 5: Components of Development Expenditure in the Water sector (Shilling in ‘000s and % share; FY 2013/14) .......................................................................................................................................... 20

List of FiguresFigure 1: Kibaale District Revenue sources (% shares) FY 2013/14 ................................................................. 10Figure 2: Kibaale District Expenditure Allocations by the main functions (% shares) FY 2013/14 .................. 10Figure 3: Kibaale District Expenditure Allocations by sectors (% shares & Billion shillings) FY 2013/14 ....... 11Figure 4: Kibaale District Revenue sources for FY 2012/13 and FY 2013/14 (Billion shillings) ........................ 12Figure 5: Kibaale District Expenditure Allocations by the main functions for FY 2012/13 and FY 2013/14 (%

share & Billion shillings) .................................................................................................................. 13Figure 6: Kibaale District Expenditure Allocations for FY 2012/13 and FY 2013/14 (Billion shillings) ............. 14Figure 7: Kibaale District Production and Marketing sector, functional expenditure allocation (% share &

Billion Shillings) ............................................................................................................................... 15Figure 8: Kibaale District Health Sector, functional expenditure allocation (% share & Billion Shillings) ...... 16Figure 9: Kibaale District Education sector, functional expenditure allocation (% share & Billion Shillings) .. 17Figure 10: Kibaale District Roads and Engineering sector, functional expenditure allocation (% share & Billion

shillings) ........................................................................................................................................... 19Figure 11: Kibaale District Water sector, functional expenditure allocation (% share & Billion Shillings) ....... 20

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Acknowledgement

CSBAG would like to express its immense gratitude to the Kibaale district Local Government for the support it accorded to use during the development of this budget guide. CSBAG is particularly grateful for the budget information including the approved district budget for FY 2013/14 without which CSBAG could not have produced this budget guide.

CSBAG also extend its sincere and profound gratitude to Dr. Edward Bbaale, the consultant that developed this budget guide. His dedication and timely efforts are highly appreciated.

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Foreword

Every Ugandan citizen is a resident of a particular local government unit (district, municipality, division, city, and town). A local government budget can be difficult to understand for an ordinary Ugandan who may not be familiar with budgeting. However, with some basic knowledge about what their budgets contains for a particular financial year, every resident of Kibaale district should be able to understand and engage in the district budgeting processes.

With this budget guide, Civil Society Budget Advocacy Group (CSBAG)1 anticipates that interested citizens should be able to understand what is contained in their Local Government’s budget. This in turn will allow citizens of Kibaale district to understand the specific aspects of the Kibaale district budget including revenue sources, expenditure allocations in selected sectors within the district. The guide also highlights the citizens’ role in the district local government planning and budgeting process. The guide is intended to enable concerned citizens to evaluate how well the budget priorities were set but also to monitor government commitments as set out in the budget and perhaps most importantly– to monitor how their local government is using their taxes.

Namyaka George WilliamDISTRICT CHAIRPERSON, KIBAALE

1 The Civil Society Budget Advocacy Group (CS BAG) is a coalition formed in 2004 to bring together CSOs at national and district levels to influence government decisions on resource mobilization and utilization for equitable and sustainable development.

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Introduction

The role of a participatory approach to budget and planning processes of District Local Governments in ensuring effective and efficient service delivery to the community cannot be underscored enough. The participation of the communities in the budget and planning processes ensures that their needs and priorities are addressed and are at the forefront of service delivery by National and Local Governments. This budget guide is designed to foster better understanding by the communities of the District budget. It is derived from the approved budget of Kibaale District for the financial year 2013/14.

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1Geographical Location and socioeconomic status of Kibaale District

Kibaale District is bordered by Hoima District to the North, Kyankwanzi District to the northeast, Mubende District to the east, Kyegegwa District to the southeast, Kyenjojo District and Kabarole District to the southwest and Ntoroko District to the west. The district headquarters at Kibaale are located approximately 219 kilometres (136 mi), by road, west of Kampala. The district consists of five counties, namely Buyaga West County, Buyaga East County, Bugangaizi West County, Bugangaizi East County and Buyanja County and has an estimated population of 717,500 people as per the mid year Population projections for 2013. The district has got 31 subcounties, 4 Town Councils, 147 parishes and 1250 Villages.

Human settlement is dispersed with an average of 164 persons per sq kilometer. This means that most housing is situated on the farming plots, at relatively large distance from each other. Each county has a small urban centre. Most roads, also main roads, are untarmaced, and electricity is provided only in these urban centers. The population is mainly engaged in subsistence production of food crops such as sweet potatoes, cassava, millet, beans, bananas, maize and groundnuts.

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What is a budget?2A country’s budget is actually a set of accounts, usually done on a yearly basis (the financial year). It accounts for money collected and spent in the past year, and sets out plans for spending and collection for the next year. The budget tells us about the government’s expenditure priorities and policies for next year and beyond. The key elements that describe the budget relate to income (revenue) and expenditure allocations to different sectors.

2.1 Decentralization in Uganda

Uganda promoted decentralization with the objective of empowering its nationals to participate in the process of development to improve their livelihood. This objective is fundamentally geared towards reducing poverty and enhancing inclusiveness. Furthermore, Ugandan decentralization was intended to promote transparency, accountability, integrity and the participation of local people and the autonomy of the local governments. The legislative framework of decentralization is provided by the Local Government Statute of 1993. This law facilitated administrative and financial decentralization, which was soon followed by another act that enabled human resources decentralization. The enactment of the Local Government Act, 1997 provided the way for further decentralization. The 2001 amendment to the 1997 Act extensively empowered elected local governments in Uganda. Decentralization in Uganda is based on three interlinked aspects: (1) political and legislative empowerment of the people, (2) fiscal devolution, and (3) control of the administrative machinery by the local councils.

2.2 District Revenue Sources

Kibaale District Local Government, like other local governments, generates revenue from local sources (taxes, licenses and fees and charges), discretionary government transfers, and conditional government transfers, other government transfers, local development grant, and donor funding. Figure 1 below shows the share of each individual source in the total revenue of the District. Out of the total revenue of over 31 billion, 96% of the District revenue for the financial year 2013/14 will come from Central Government Transfers, of which conditional government transfers accounts

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for 80%, discretionary (Unconditional) government transfers (10%), other government transfers (4%) and local development grant (2%). A key implication from this analysis is that the District’s capacity to generate its own revenue locally is limited and hence purposive efforts to enhance it should be put in place.

Figure 1: Kibaale District Revenue sources (% shares) FY 2013/14

2.3 District Expenditures Allocations

This subsection presents the District’s expenditure allocations by the main functions; wage, non-wage, domestic development and donor development (Figure 2). Figure 2 shows that 54% and 28% of the District’s expenditure allocation was made to wage and non-wage recurrent expenditure, respectively. Figure 2 further shows that 16% of the Districts expenditure allocation was made to domestic development expenditure while only 2% of the development expenditure emerged from donor sources. The key message from this analysis is that wage expenditure allocation takes a significant share in the District’s expenditure allocation and actually more than doubles the development expenditure allocation.

Figure 2: Kibaale District Expenditure Allocations by the main functions (% shares) FY 2013/14

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Figure 3 below presents the expenditure allocations to various sectors such as education, health, administration, production and marketing, water, community based services, roads and engineering among others. A sector with the highest expenditure allocation is presumably the one with the highest priority and the community needs to assess whether this is the most pressing need. Out of a total budget of over Ug. Shs 31 billion, the greatest allocation went to education (49%), health (13%), production and marketing (11%), roads and engineering (10%), administration (4%), statutory bodies (4%), community based services (3%) and finance and water received 2% each, and the rest of the sectors had 1% of the expenditure allocation. The key message from the analysis is that the District allocated more resources to sectors benefiting the community directly. However, it is noted with concern that administration was given a greater share (4%) compared to water (2%) which is key to the welfare and health in community.

Figure 3: Kibaale District Expenditure Allocations by sectors (% shares & Billion shillings) FY 2013/14

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Comparing performance measurements for revenue and expenditure

This section shows how the District’s revenue sources and expenditures allocations changed between financial years 2012/13 and 2013/14. Through this analysis, we are in a position to identify winners and losers.

Figure 4: Kibaale District Revenue sources for FY 2012/13 and FY 2013/14 (Billion shillings)

Figure 4 above shows that some sources of District’s revenue are projected to generate more while others less revenue during the financial year 2013/14 compared to that of Financial Year 2012/13. Discretionary government transfers, government conditional transfers and locally raised revenue are projected to generate more revenue in the financial year 2013/14 compared to 2012/13. Conversely, other government transfers and donor funding are projected to yield less revenue in

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2013/14 compared to 2012/13.

Figure 5 below shows that there was an increase in the District allocation to wage recurrent expenditure (from 53% to 54%) and non-wage recurrent expenditure (from 23% to 28%) between the financial years 2012/13 and 2013/14. Conversely, there was a decline in the District allocation to domestic development (from 21% to 16%) and donor development from (3% to 2%). The key message from this analysis is that recurrent expenditure took priority over development expenditure in Kibaale District during the period under review.

Figure 5: Kibaale District Expenditure Allocations by the main functions FY 2012/13 and FY 2013/14 (% share & Billion shillings)

Figure 6 below shows the winners and the losers of the District’s budget allocation comparing financial years 2013/14 and 2012/13. The sectors that experienced an increase in the District’s budget allocation (winners) include Education, Health, roads and engineering, community based services and statutory bodies. Production and marketing sector experienced a decline in the District’s budget allocation (loser) between financial years 2012/13 and 2013/14. The key implication from this analysis is that some key sectors like education, health, roads and Engineering gained while production and marketing lost.

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Figure 6: Kibaale District Expenditure Allocations FY 2012/13 and FY 2013/14 (Billion shillings)

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Overview of expenditure allocations within selected key sectors4

This section highlights the expenditure breakdown for the selected key sectors (production and marketing, health, education, roads and engineering and water). There are two general forms of expenditure allocation by the District; recurrent expenditure which is used to finance day to day activities of the district which include both wage and non-wage activities. Second is development expenditure which is used to undertake capital investment in different sectors of the District.

4.1 Production and Marketing

Figure 7 below, shows that over 70% of the expenditure in Production and Marketing sector is allocated to development ventures. On the other hand, 4% and 21% is allocated to wage and non-wage expenditure, respectively.

Figure 7: Kibaale District Production and Marketing sector, functional expenditure allocation (% share & Billion Shillings)

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Table 1 below shows the main components of the development expenditure in this sector. Agricultural advisory services lead with 81% followed by technology development and farmer advisory Services (9%), cross-cutting training (5%), Crop disease control and marketing and Livestock health and Marketing, respectively (2%). The rest of the components account for less than 1% of the expenditure allocation within the sector. The key message is that agricultural advisory services significantly dominate other components in share of the expenditure allocation in the sector.

Table 1: Components of Development Expenditure in Production and Marketing sector (Shilling in ‘000s and % share)

Components Amount % ShareAgricultural Advisory services (conditional grant for NAADS) 2,132,016 81.3

Technology Development and farmer advisory Services 240,765 9.2

Cross-cutting training (development centers) 119,030 4.5

Crop disease control and marketing 52,506 2.0

Livestock health and Marketing 60,522 2.3

Fisheries regulation 4000 0.2

Tsetse vector control and commercial insects farm promotion 12800 0.5

Total 2,621,639 100Source: Kibaale District Budget 2013/14

4.2 Health sector

Figure 8 below shows that 69%, 13% and 5% of the expenditure in the health sector is allocated to wage, non-wage and domestic development expenditure, respectively while 13% of development expenditure emerges from donor sources. It is imperative to note that the wage expenditure in the health sector dominates all other main components of the District expenditure. It is noteworthy that whereas it’s important to pay and motivate health workers for a better service delivery, this should be kept in balance with other important aspects like ensuring adequate supply of drugs and other things important for treating patients.

Figure 8: Kibaale District Health Sector, functional expenditure allocation (% share & Billion Shillings)

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Table 2 below shows the main components of the development expenditure in the health sector of Kibaale District. Healthcare management services leads all others with 72% followed by Maternity ward construction and rehabilitation (13%), Health centre construction and rehabilitation (11%), and Standard pit latrine construction (2%).

Table 2: Components of Development Expenditure in the Health sector (Shilling in ‘000s and % share; FY 2013/14)

Components Amount % ShareHealthcare Management services (donor Development) 537151 72

Standard pit latrine construction 11299 2

Vehicles and other transport equipment 5013 1

Health centre construction and rehabilitation 82822 11

Maternity ward construction and rehabilitation 100000 13

Monitoring, supervision and appraisal of capital works 10000 1

Total 746285 100Source: Kibaale District Budget 2013/14

4.3 Education Sector

Figure 9 below shows that 75%, 19% and 6% of the expenditure in the education sector is allocated to wage, non-wage and domestic development expenditure, respectively while only 0.1% of development expenditure emerges from donor sources. It is imperative to note that the wage expenditure in the education sector dominates all other main components of the District expenditure. It is noteworthy that whereas it’s important to pay and motivate education workers for a better service delivery, this should be kept in balance with other important aspects that ensures a good education environment like classrooms and scholastic materials. It should also be noted that the District Budget does not capture the off – budget support to education and other sectors e.g. support from World Vision, Uganda Rural Development and Training Programme (URDT), EMESCO Foundation among others.

Figure 9: Kibaale District Education sector, functional expenditure allocation (% share & Billion Shillings)

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Table 3 below shows the main components of the development expenditure in the education sector of Kibaale District. Classroom construction and Rehabilitation leads all others with 31% followed by Teacher house construction and rehabilitation (28%), and Classroom construction and Rehabilitation (secondary) (11%). The rest of the components have a share that is less than 10% each.

Table 3: Components of Development Expenditure in the Education sector (Shilling in ‘000s and % share; FY 2013/14)

Components Amount % ShareClassroom construction and Rehabilitation (Kitutuma PS, Kasambya Parents, etc 288897 31.2

Monitoring, Supervision of Appraisal of capital works 2100 0.2

Residential Buildings (dormitory at St. Kizito) 80737 8.7

Other structures (VIP latrine at Kitutuma, Mpogo, Baramagi, Baruuko etc 73582 7.9

Teacher house construction and rehabilitation 256511 27.7

Monitoring, Supervision of Appraisal of capital works 1400 0.2

Provision of furniture to primary schools 18959 2.0

Classroom construction and Rehabilitation (Secondary) 100,000 10.8

Special needs education (donor) 19,166 2.1

Furniture and fixtures 15,000 1.6Vehicles and other transport equipment (procurement of a new 4 wheel double cabin Toyota) 70000 7.6

Total 926352 100

Source: Kibaale District Budget 2013/14

4.4 Roads and Engineering sector

As might be expected, figure 10 shows that non-wage recurrent expenditure dominates other components of the District expenditure allocation with 94% followed by wage expenditure (4%) and development expenditure comes last with only 1%.

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Figure 10: Kibaale District Roads and Engineering sector, functional expenditure allocation (% share & Billion shillings)

Table 4 below shows the main components of the development expenditure in the roads and engineering sector of Kibaale District. Monitoring, supervision and Appraisal of capital works (88%) dominates while Maintenance of Machinery, Equipment and furniture accounts for the remaining 12%. Of the non wage recurrent, ushs 1.8billion will be used for procurement of road plants namely; a motor grader, vibro roller, low bed, service single cabin van, a water bouser and repair of the existing road equipment.

Table 4: Components of Development Expenditure in the Roads and Engineering sector (Shilling in ‘000s and % share; FY 2013/14)

Components Amount % shareMonitoring, supervision and Appraisal of of capital works 35367 88Maintenance of Machinery, Equipment and furniture 4915 12Total 40282 100

Source: Kibaale District Budget 2013/144.5 Water

Again as might be expected, figure 11 shows that domestic development expenditure dominates other components of the District expenditure allocation with 94% followed by non-wage expenditure (6%). There was no wage expenditure in this sector since wages for the water staff had been captured under Roads and Engineering department.

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Figure 11: Kibaale District Water sector, functional expenditure allocation (% share & Billion Shillings)

Table 5 below shows the main components of the development expenditure in the water sector of Kibaale District. Borehole drilling and ferro cement tank construction (48%) dominates other components followed by shallow well construction (22%), Support for O & M of District water and sanitation (10%) and the rest of the components have a share that is less than 10% each. However, there will be no construction of boreholes during the FY 2013/14 since the funds allocated for boreholes are for payment of arrears for the boreholes drilled during FY 2012/13. This payment was rolled over to FY 2013/14 due to non release of development grants by the centre during the 4th quarter of FY 2012/13.

Table 5: Components of Development Expenditure in the Water sector (Shilling in ‘000s and % share; FY 2013/14)

Component Amount % Share

Operation of the District water office (Allowances, IT, Stationery, travel and vehicles) 29000 6

Supervision, monitoring and coordination 25983 5

Support for O & M of District water and sanitation 46860 10

Promotion of community based management, sanitation and hygiene 38613 8

Other structures (construction of ferro cement tanks at kadandali LCI, retention for construction of boreholes of 2012/13 FY at Katikara LCI etc) 227450 48

Other (Construction shallow well in Bugangaizi East &West, Buyaga East & West, Buyanja etc) 105000 22

Total 472906 100

Source: Kibaale District Budget 2013/14

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Role of citizens in the budget making process5

There is need for citizens to participate in the budget making process by engaging with the District Management very early during the process. It’s important for the citizens to know that the Budget cycle for the next financial year starts round about October/November of the current financial year but not in June when the budget is about to be read. There is therefore a need to form Participatory Budget Clubs (PBCs) that can help sensitize the community about the budget process and can also form a platform for the community to engage and influence budget decision making processes at local level. Furthermore, there is need for Civil Society Organizations to equip PBC members with the required knowledge and skills for them to be able to engage effectively with the duty bearers. The Constitution of Uganda supports citizen participation in the Planning and budgeting processes. Objective X, states that “The state shall take necessary steps to involve the people in the formulation and implementation of development plans and programmes which affect them.” Thus community participation in planning, budgeting, implementation, monitoring and evaluation of the quality of service delivery is important for the successful implementation of the budget.

Specifically, the community should;

o Follow-up of all projects budgeted for and establish the actual funds released as well as the status and quality of project implementation (checking the value for money);

o Demand that Local Governments display information on all funds mobilized locally as well as the transfers from the Central Government as well as from donors on public notice boards or in public places at both district, sub county and project implementation sites;

o Participate in the implementation of the approved projects within their areas. This will promote ownership and sustainability of the projects.

o Demand for project implementation progress reports from local government officials to ensure that information on the state of budget implementation is shared with citizens regularly;

o Report to duty bearers cases of poor budget implementation, shoddy works, corruption,

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ghost projects among others for corrective action to be taken; and

o The PBCs should undertake to mobilize the community, especially the vulnerable groups (women and the youth) to watch how the local leaders deliver key services such as health, water and education. Additionally, produce monitoring reports and organize community dialogues between community members, service providers and duty bearers to discuss the findings and develop action plans.

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Glossary

Development expenditure: District expenditure used to undertake capital investment in different sectors of the district.

Domestic development expenditure: District expenditure on capital investment supported by Government of Uganda or locally raised revenue.

Recurrent expenditure: District expenditure of a district on day to day running of district programmes including salaries, water and electricity utilities and administration costs

Non-wage recurrent expenditure: District expenditure on overhead costs excluding wages including: administration, stationery, utilities, rent, among others.

Unconditional grants: Grants transferred to local governments from Central Government to run decentralized services and cater for both wages and non-wages expenditures.

Conditional grants: Grants given to Local Governments to finance programmes agreed upon between the Central Government and the Local Governments and are used only for purposes for which it was made and in accordance with the conditions agreed upon e.g. NAADS, urban water, construction of schools and health centers etc.

Equalization grants: Grants transferred to disadvantaged Local Governments to enhance their growth and development to the level of other districts.

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