MPs question Finance Ministry over excess budget releases to districts
In a report presented by Committee Chairperson Hon. Gilbert Olanya on Wednesday, 23 October 2024, the committee noted discrepancies in budget allocations for 37 district local governments, three cities, six divisions, and 10 municipal councils for the Financial Year 2022/2023.
The Public Accounts Committee (Local Government) has raised concerns about the Ministry of Finance’s release of excess funds to districts, questioning the motives behind it and highlighting its contribution to low fund absorption.
In a report presented by Committee Chairperson Hon. Gilbert Olanya on Wednesday, 23 October 2024, the committee noted discrepancies in budget allocations for 37 district local governments, three cities, six divisions, and 10 municipal councils for the Financial Year 2022/2023.
Olanya pointed out that districts like Butambala requested Shs1 billion for wages but received Shs5.5 billion, while Kitgum District received Shs2 billion in supplementary funds that were not requested.
“Investigations should be carried out to understand why the Ministry of Finance releases more than what was requested,” Olanya emphasized.
The committee also found that some districts face late releases of funds, negatively impacting service delivery. Many entities reported receiving funds in the last quarter of the financial year, leaving little time to utilize the resources effectively.
Hon. Sarah Opendi, the Tororo District Woman Representative, criticized the Ministry of Finance for over-budgeting for some districts while others experience shortages, saying, “The ministry is starving some entities while releasing excess funds that can’t be used. This needs to be corrected.”
Hon. Jackson Atima (NRM, Arua Central Division) added that Arua City returned Shs17.6 billion due to late releases, despite having gaps in service delivery.
Kumi District Woman Representative, Hon. Christine Apolot, noted that this issue of excess fund release is becoming a common practice, making it difficult for districts to spend funds that were not in their budget.
On a positive note, the committee reported that Shs42.6 billion under the Parish Development Model was well-utilized, with most savings groups receiving and utilizing the funds as intended to improve household incomes.
