The Committee on Public Accounts (Local Government) has questioned the motive behind excess release of budgets to districts saying that this has contributed to low absorption of funds.
This was contained in the committee’s report on the report of the Auditor General for the Financial Year 2022/2023 on 37 district local governments, three cities, six divisions and 10 municipal councils.
The report was presented by Committee Chairperson, Hon. Gilbert Olanya on Wednesday, 23 October 2024.
“Investigations should be carried out to find out why the Ministry of Finance releases over and above what was requested,” Olanya said.
He cited Butambala District that requested for Shs1 billion for wages but Shs5.5 billion was released as was in Kitgum District that received a supplementary of Shs2 billion that was not requested for.
The committee further observed that whereas some districts received excess budgets, some districts continue to grapple with late releases of funds which has greatly affected service delivery.
“Several entities informed the committee that funds were released at the last quarter of the financial year,” said Olanya.
Tororo District Woman Representative, Hon. Sarah Opendi said that it is unfair for the Ministry of Finance to over budget for other entities while others have shortages.
“The ministry is starving other entities and yet at the same time releasing funds that cannot be utilised. I hope this can be corrected,” she said.
Hon. Jackson Atima (NRM, Arua Central Division) urged the ministry to adopt mechanisms to ensure timely release of funds.
“Arua City returned over Shs17.6 billion yet we have service delivery gaps that are attributed to late releases by Finance. I implore the ministry that money should be released in time so that it is not returned to the treasury,” he said.
Kumi District Woman Representative, Hon. Christine Apolot said that the Ministry of Finance ought to explain the release of excess saying that it is now a common practice.
“Districts are not able to spend all the funds because they were not in their budget,” said Apolot.
The committee on the other hand observed that funds under the Parish Development Model totaling Shs42.6 billion were appropriately utilised, thereby enabling the implementation of the programme’s objective of improving household income.
“Most savings groups received their funds, as budgeted. Most of the groups were registered to as a requirement to ensure their legality and they have up-to-date members’ registers,” Olanya said.
