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 introduced by Committee Chairperson, Hon. Gilbert Olanya on Wednesday, 23 October 2024.
“Investigations needs to be carried out to search out out why the Ministry of Finance releases over and above what was requested,” Olanya stated.
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 drastically affected service supply.
“Several entities knowledgeable the committee that funds had been launched on the final quarter of the monetary 12 months,” stated Olanya.
Tororo District Woman Representative, Hon. Sarah Opendi stated 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 stated.
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 now we 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 isn’t returned to the treasury,” he stated.
Kumi District Woman Representative, Hon. Christine Apolot stated that the Ministry of Finance ought to clarify the discharge of extra saying that it’s now a typical follow.
“Districts will not be in a position to spend all of the funds as a result of they weren’t of their funds,” stated Apolot.
The committee then again noticed that funds below the Parish Development Model totaling Shs42.6 billion had been appropriately utilised, thereby enabling the implementation of the programme’s goal of bettering family earnings.
“Most financial savings teams obtained their funds, as budgeted. Most of the teams had been registered to as a requirement to make sure their legality they usually have up-to-date members’ registers,” Olanya stated.