The Committee on Public Accounts (Local Government) has questioned the motive behind extra launch of budgets to districts saying that this has contributed to low absorption of funds.
This was contained within the committee’s report on the report of the Auditor General for the Financial Year 2022/2023 on 37 district native governments, three cities, six divisions and 10 municipal councils.
The report was offered by Committee Chairperson, Hon. Gilbert Olanya on Wednesday, 23 October 2024.
“Investigations needs to be carried out to seek out out why the Ministry of Finance releases over and above what was requested,” Olanya mentioned.
He cited Butambala District that requested for Shs1 billion for wages however Shs5.5 billion was launched as was in Kitgum District that obtained a supplementary of Shs2 billion that was not requested for.
The committee additional noticed that whereas some districts obtained extra budgets, some districts proceed to grapple with late releases of funds which has significantly affected service supply.
“Several entities knowledgeable the committee that funds have been launched on the final quarter of the monetary 12 months,” mentioned Olanya.
Tororo District Woman Representative, Hon. Sarah Opendi mentioned that it’s unfair for the Ministry of Finance to over funds for different entities whereas others have shortages.
“The ministry is ravenous different entities and but on the similar time releasing funds that can’t be utilised. I hope this may be corrected,” she mentioned.
Hon. Jackson Atima (NRM, Arua Central Division) urged the ministry to undertake mechanisms to make sure well timed launch of funds.
“Arua City returned over Shs17.6 billion but we now have service supply gaps which might be attributed to late releases by Finance. I implore the ministry that cash needs to be launched in time in order that it’s not returned to the treasury,” he mentioned.
Kumi District Woman Representative, Hon. Christine Apolot mentioned that the Ministry of Finance ought to elucidate the discharge of extra saying that it’s now a standard observe.
“Districts usually are not in a position to spend all of the funds as a result of they weren’t of their funds,” mentioned Apolot.
The committee alternatively noticed that funds below the Parish Development Model totaling Shs42.6 billion have been appropriately utilised, thereby enabling the implementation of the programme’s goal of bettering family revenue.
“Most financial savings teams obtained their funds, as budgeted. Most of the teams have been registered to as a requirement to make sure their legality and so they have up-to-date members’ registers,” Olanya mentioned.
