Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698931309619.pdf (Uganda)
CLrnr TO PA t-i' 2 s t+,llil Zt'?Z a Lr Rr-i-c,E\v Lrr,lX 7 t /lj (.

L,{ri&/ -*t. 1t l ALTERNATIVE POLICY STATEMENT FOR MINISTRY OF LOCAL GOVERNMENT FOR FY 2022/23 Hon.

NoluYimo BettY Ethel SHADOW MINISTER FOR LOCAL GCVERIV1ENT rVorch 2022 Toble of Content Executive Summory List of Acronyms .............. .....................2 .............3 Chopter 1: Bockground to the Alternotive Policy Stotement.

...................................4 I .l .


Legol Provisions for Presenting Alternotive Policy S1otemen1............... ........4 1 .2.

Secior Overview I .3.

Stotement Outline .............4 ..........5 Chopter 2: Situotionol Anolysis of Ministeriol Policy Stofement............... .........6 2.1.

Budget Anolysis ............. .....................6 2.

).1 .
).1 .

Overview of the Budget Allocotion Trend ond Projections for FY 202212023 including MoLG funds opproprioted through other AADAs .............6 Toble Shows Comporisons between FY 2021123 and 2022123 Budgets for Ministry of Public Service.

........6 Toble Shows FY 2022123 A/OLG Recurrent Budget Allocotions by Deportment (Sub Sub Progromme) ............ ...............7 2.).3.

Anolysis of Key Locol Government Sector Pro9rommes........................... B 2.1.4.
Sector Complionce to NDP lll .....................9 2.1 .5.

Complionce With The Porliomentory Recommendotions On The NBFP 3.

Emerging lssues ond Proposed Alternotives............ 4.

Conclusion .............. ......

I I ............. 19 Page | 1 Executive Summory Section 6E (2) of the Administrotion of Porlioment (Amendment) Act, 2006 empowers Shodow A/inisters to present Alternotive Policy stotement on the floor of Porlioment.
The Locol Government hos its progrommes budgeted under Voie 0l I Ministry of Locol Governments, Vote 147 Locol Government Finonce Commission ond Votes 617:60)- B50 Locol Governments.
However, Locol governments (LGs) ore groppling with lock of office spoce, rushed implementotion of the Porish Development Model (PDA ), declining finoncing of Locol Governments, slow operotionolizotion of newly estoblished odministrotive structures, deloys in disbursements of funds io Locol Government, few opproved District Development Plons (DDP), inodequote copocitres of LG stoffs, weqk functionolity of Locol Government occountobility structures, recentrolizotion of functions of LGs which undermines the principles of decentrolizoiion omong oihers.
This underscores services delivery in LGs.

The Alternoiive Policy Stotement therefore, focuses on modes of hoving better service delivery of Locol levels.

This requires, Government deepening of fiscol decentrolizotion, hormonizing the Locol Government Act, the Public Finonce AAonogemeni Act ond Locol Government Regulotions.
Funds thot ore currently opproprioted to centrol government MDAs but ore meont for LGs should be opproprioted directly under the respective beneficiory LGs to ensure timely usoge of the funcls.

Developing stotutory criterio upon whlch creoiion ond opprove of new odministrotive entities should be undertoken.

LGs should be oided to creote oppropriote Finonciol Systems thot enoble their clients to poy Locol Revenues ot Remote points.
There is on urgent need to holt the creotion ond operotionolizotion of new odministrotive units until the creotion criterio ond ciiy low enoctment legislotion ore finolised, Locol Governments which don't submit their DDP in time should be ponelised ond their budgets shouldn't be opproved by porlioment.

There is need to reduce on the number of Locol Leoders in eoch district.
Continuous copocity development is o key ingredient for the effective operotions of stcrtutory bodies of Locol Government Commissions i.e LGPAC.
For Locol Governments to fully ochieve their mondote of guiding, monitoring, mentoring ond odvocoting for service delivery in Locol Governments, there is Page | 2 need for coordinoted efforts between Porlloment, A/DAs, the Executive ond key stoke holders of Civil Society, Privote sector ond Development Portners' lt's key thot thls Alternotive policy stotement is given ottention to the issues roised' Billions Humon Resource Locol governments District DeveloPment Plons Government of Ugondo District Service Commissions District Locol Governmenis District Executive Committees List of Acronyms Bn DDP DECs DLGs DSC GOU HR LGPAC Locol Government Public Accounts commitiee LGs MoFPED AAinistry of Finonce, Plonning ond Economic Development MDA MoLG AAoPS lrulinistry of Publlc service MTEF Midterm Expenditure frome work NPA NBFP PDM PSC SMEs UgIFT Ugondo lntergovernmentol Fiscol Trcrnsfei' VAT Noiionol Plonning AuthoritY Notionol Budget Fromework Poper Porish DeveloPment Model Ministries.
Deportments ond Agencies AAinistry of Locol Government Publlc Service Commlssion Smoll Medlum EnterPrises Volue Added Tox Page | 3 Chopter 'l: Bockground to the Alternotive Policy Stotement.

1.1.

Legol Provisions for Presenting Alternotive Policy Stotement Section 6E (2) of the Administrotion of Porlioment (Amendment) Act, 2006 empowers Shodow Minisiers to present Alternotive Policy Stotement on the floor of Porlioment.
Rule 147 Rules of procedure of Porlioment ollows Shodow Ministers to submit their Alternotive Stotemeni to Porlioment by 29tn doy of Morch every yeor.

The Locol Government hos its progrommes budgeted under the following votes:- l. Vote 0l I Ministry of Locol Governments ll.

vote I 47 local Government Finonce Commission lll.

Votes 617:601- B5O Locol Governments 1.2.

Sector Overview The Locol Government is o key sector chorged with Locol Government odministroiion.
This is o result of the decentrolizotion reforms underioken by government to tronsfer power ond responsibilities from the cenire to the locol levels.

The sector is composed of three eniiiies of Minislry of Public Service, Ministry of Locol Governments, Public Service Commission, Locol Government Finonce Commission ond district Locol Governments.
While os the Locol Government Finonce Commission wos formed mojorly to odvise the presideni on oll motters concerning revenue distribution between the government ond Locol Governments, this hos not been ochieved due foctors like recentrolizotion effects ond mode of operoiion in the country, noture of toxes left for collection by LGs, low focilitotion system of collection of Locol Revenue by LG.

A/ost locol revenue collection units ore performing od hoc f unctions.
This undermines the decentrolizotion thrust of service delivery.

The AAinistry of Locol Governments which is mondoted in guiding, monitoring, mentoring ond odvocoting for service delivery in locol governments.
However, Locol Governments (LGs) ore still groppling with lock of office spoce, rushed implemeniotron of the Porish Development Azlodel (PDM), declining finoncing of Locol Governments, slow operotionolizotion of newly estoblished odministrotive structures, deloys in disbursements of funds 1o Locol Government, few opproved District Development Plons (DDP), unsustoinoble Locol council estoblishnrents, inodequote copocities of LG stoffs, weok functionolity of Locol Government occouniobility structures, recentrolizoiion of functions of LGs, omong others.
Page | 4 Stotement Outline ,l.3.
Chopter l: This chopter provides legol provisions for the preporotion of the Alternotive Policy Stotement by the Shodow AAinister for Locol Government Chopter 2: This chopter provides onolysis of the Ministeriol Policy Stotement for FY 2022123 Chopter 3: This chopter provides the key emergency issues in the Locol Governments in Ugondo ond Key Proposed Alternotives Chopter 4: Summorises the Aliernotive Policy Stotement Page | 5 Chopter 2: Situotionol Anolysis of Ministeriol Policy Stotement 2.1.
Budget Anolysis 2.1.1.

Overview of the Budget Allocqtion Trend ond Projections for FY 2022/2023 including MoLG funds opproprioted through other MDAs The totol resource envelope for the FY 2022123 is projected of UGX.

43,083.2 billion, resources ovoiled to implement plonned vote interventions ore os follows, s/N Vote t. 2.
FY2022 1?.3_( Billions Vote Ol I vole 147 r 31 .38 4.99 Entitl MinisllyolLqcol Governments Locol Government Finonce Commission Locol Governments 3. s 501 - B5O otol 1 4,527.9 4,664.27 Source: MPS FY 2022/23 MoFPED The AAPS For Locol government indicotes thot the locol government sector wos ollocoted o totol of Shs.

4,659.3Bn but ocluol oddition of the 3 Votes indicotes o totol budget of Shs.

4,664.278n for the sector.


Toble Shows Comporisons between FY 2021/23 ond 2022123 Budgets for Ministry of Public Service.
rtem FY 2022/23 Droft Estimotes Chon -tgei FY 2021/22 Approved Woge Non -wonge Development (Domestic) Externol Finoncing otol IiT I 23.728 11 .7 66 21 .614 129.57 4 188.97 4 I -0.028 -1 .7 66 -B.Br4 IJ 7 r0.0 12.8 84.B r 31 .35 -44.77 4 -57.624 Source: MPS FY 2022/23 There is o totol reduclion in the ollocotion of funds for the A/inistry of Public Service in woges, non-woges, development expenditure both Domestic ond externol finoncing from FY 2021122 to FY 2022123.

Only Shs.
Only Shs.

l2.Bbn hos been ollocoted towords developmenl expenditure compored to shs.

33./ bn for recurrent expenditure Page | 6 T t T T T T I t T T T T T T T I T I I T T Toble Shows FY 2022/23 MOLG Recurrent Budget Allocotions by Deportment (Sub Sub Progromme) Sub Sub Progrom Nome Woge Non Woge [r i st ri r-: t Ad l-r'r i r, is t r ir li r:r rr tj e f-r <-: r t n'r e rrt I L l r-.

i: I t-, i-ri-r r, i-:i ls []e:ve I i-r i:; n'rr-.

n i Dr:: pr:rtr-r I e rrt I Ll-,,- ol :r.'t;r',rniir.'
[)t:.v.-.l11prr'rti:rrt !.t;--[:r-:-tr'r'rrfrt '){1,i'39 7 5),15'8 2i1,3,( lt)U,LlDtj l?0 DDir,001.)

4.i I ,6 i :j 3{ll lt0,/55,:l 1,/ '?v,).12P-, 5,59 F'rr-) {r i-r r eni e n i I r s plec iirt rr c rr d t-.

c crcj i ntriio n ,1u 0()tl0{10 e0,717,i1t)5 l-l rtr r.r r' ArJ rri r n i strr-: tir-r n [1 e;rr: r1'n-rr-: rr t l.il1.0ut.0rlr:) '378.7 67 457 [.iistrir- t I rip-r ec; ti r:r rr !

)e F,r]rtn-i'- n i L..iS li'.;..-,.

-ir-rr il[,] ..,-,r-'rr-jit-.


)tir-', lrl,jr_lr- l!i:rir :iir-rr- f)E;-ri:trin-rer,i r"- rr,- .i- -1,- .

: A'-:',-, r- i1',-rt,.,'- I -'''rt,),-r iii(.

-.t.'-...

: ::+.

:1, -:,1"'r-.

-,t I I I Irrtsr'n,:l Ar-rdit r-rnit [',:-rlic y & Plcrrnir,<; D*i-rrtrtrrrent :1_ri D00,00r:i ?9P.,.17 4 )97 4/ Lrllr--)"ir{il.j 7 7 49',) ,7',d5 2r5 i:)i-i{.r.ftjL,} 2Lr8 ?48 3l l I i,C.1 lili_1.

[)[)i) '2 7()5,80() 9t)7 l- l/ ) r1t r (r\'+ /!l\ (r()iI 4 9/ ) .4P,0,',26\ 45 O(jr:).c{li.)
15c,.000 0(:)t) l0t ,:1.1, 2,14 '2,)1.827.79t) T(_)TAL 23,728.386,838 10.025.95'.t,484 ' Nr-;n-Wr-rgye Burlg,pef for Finance anri Ar-lr'nirtlsfrcrfion inc/r-;rJes Rent of UGX 2.1Brt "Nrln-\nlc-rr1e Bucjqel fut Hunrcln Resource Mrrrrtqerneili in{-lulies Pension trnci r.yrLtutty Btrrlgel ctf UGX4.7P,N Source: MPS FY 2022/23 Over Shs.

20,539,752,158 hos been ollocoted to District Administrotion os woge compored io 4/,000,000 woge for Locol government inspections ond coordinotion.

Page | 7 2.1.3.
Page | 7 2.1.3.

Anolysis of Key Locol Government Sector Progrommes s/n Progromme mmes I Entity Budget FY 2022/23 (billions) 10.?49 4.000 62.364 ) ') .
)-t E 356.692 Strengthening Accountobiiity Governmeni Siruciures ond Systems Humon Resource Monogemeni Decenirolizotion ond Lo<:o Economic Development Production ond productivily I nfrostructure Development Copocity Building of Leoders A,4inistry Of Locol Government Locol Governrnent Finonce CommissionitGFC) Minisiry of Loco Government lnsiiiutionol Slrengthening ond Coordinolion Agriculiurol Producfion ond Productivity Sloroge, Agro-Processing ond Vclue qdditlon AgricuLiurol Morket Access ond Compeiitiveness Tronsport Regulotion Lond Use ond Tronspod Plonning Tronsport lnfrostructure ond Services Development Tronsport Asset Azlono gement Development Plonning, Reseorci-t, Evoluotion ond Stoilsiics Resource Mobillzotion ond Budgc'ting Oversighl, lmpiementotion, Coordinoiion ond Monitodng Accountobility Systems ond Service DeJivery Locol Government Administroilon ond Development Enobling Environment Strengthening Privole Seclor lnstilutiono ond Orgonizotionot Copocity Physicol Plonning ond Urbonizotion; Housing Developmenl lnstitutiono Coordinotion Communlty sensitizotion ond empowerment Strengthening institutionol support Civic Educolion & Azlind set chonge Ministry of Locol Government LoEot covZrnme,rii 0r i l 609 Locoi l--I (u OVe[Ffi1eflIS UY 45.221 0l 1 A/inistry of Loco Governmen't 0.613 I 1 1 Minislry of Locol 0.3 Ib Governmenl 60/ Locoi Governmenls 07 011 Minisiry of Locol Government 6l 5 Locol Governments l5 1.13t ).429 7.7s5 Public Sector Tronsformotion 2.
Regionol Bolonced Development 3 Agro- lndustriolisotion 4. lnlegroted Tronsport lnfrostructure And Services 5.

Developmenl Plon lmplemenlotion 6.

Climote Chonge, Noturol Resource, Environment And Wqler Monogement 7.

Privqte Sector Development 8.

-f 9.

I Sustoinoble Urbonisqtion Community Mobilizotion I i i 1 l- l I I :, l I I L i i I I 1, -_-1.
Source: MoFPED Page | 8 2 I .1. s/n 4.S I ector Complionce to NDP lll Progromme Sub progrommes I I I l0.l I Public Sector Tronslormotion Regionol Bolonced Developmenl 12.
Agro-lndustriolisotion 1 NDPiii Budget I rY 2022/23 (billions) Strenglhening Accountobility Government Structures ond Systems Humon Resource Monogement Decentrolizotion ond Locol Economic Development Procluction ond productivity Infrostructure Development Copocity Buiiding of Leoders nstltutrono Slrengthening cno Coordinotion Agricu turol Production ono Product vity Storoge, Agro-Processing ond Volue oddilion Agriculturol Morket Access ond Competitiveness Not indicoled 6I 5.5'83 7.6 s0 I. j i I I t- I I 32.553 10.949 4.000 62.364 13.27 5 356.692 13.
I -i 4.i lntegroted lronsporl lnfrostructure And Services Developmenl Plon lmplementotion Il- Tronsport Regulotion Lond Use ond Tronsport Plonning Tronsport lnfrostructure ond Services Developmenl Tronsport Asset Azlonogemenl Development Plonning, Reseorch, Evoluotion ond Stotislics Resource A/obl izoiion ond Budgeting Oversight, lmplemenlotlon, Coordinoiion ond Monitoring Accountobility Systems ond Service Delivery 2,384.47 i< aa1 2OO.

-ll!
-ll!

0.5r3 5 Climote Chonge, Noturol Resource, Environment And Woter Monogemenl Privole Sector Developmenl 16.

I I I i I 17 Sustoinoble Urbonisotion 18.


Communily Alobilizotion I __l Page | 9 Locol Government Administrotion ond Development Not indicoted 0.3 Enobling Environment Strengthening Privote Sector lnstitutionol ond Orgonizotlonol Copocity 4.99 2.232 Physicol Plonning ond Urbonizotion Housing Development lnstltuiionol Coordinotion Communily sensitizotion ond empowerment Slrenglhening lnstitutionol support Civic Educotion & Mind set chonge Not indicoted 0.60+33.4 7 1.429 a -7Eq 2.1.5.
Complionce With The Porliomentory Recommendotions On The NBFP For FY 2022/23.

o) The gender constituencies identified need to be broodened to oddress ospects such os employment imbolonces/inequolities omong others where EOC shoulder consider exponding its scope of work to include Locol Governments.

b) For full implementotion of the Porish Development Model.

Government should integrote ond moin streom the PDM in oll MDA strotegic plons, budgets ond work plons.
There is need to review the odministrotive structure of the Porish to minimise operotionol Expenses ond to ovoid duplicotion os government is moving towords rotionolisotion of government ogencies.

c) The conrmittee recommended ihot Government provides Shs.

l20 bn for the construction of office blocks for the newly creoted town councils, sub couniies ond porishes.

d) Committee recommended thot government should ollocote Shs.
120 bn to the ministry of locol government to coter for the induction of councillors in I 7/ districts/m u nicipolities/cities.

e) The commiitee recommended thot government ollocotes Shs 34 bn for remunerotlons of politicol leoders in respective locol governments.

f) AAinistry of locol government should provide detoiled informotion on oll Locol Governments in the NBFP to help identify the criticol needs of the Locol Governments during the budget process.
g) For proper implementotion of Government progrommes, funds should be directly chonnelled through locol government voies for FY 202112022. h) The committee proposes l5% ollocotion of the notlonoi budget to locol governments.

Page | 10 3.

Emerging lssues ond Proposed Alternotives.

i. lnodequote LG Finoncing Over the recent yeors LG tronsfers from centrol government hove been on o decline.
According to the FY2022123 NBFP LG finoncing is projected to reduce by UGX 446.46 3n (9.75%) from UGX 4,577.56 Bn in FY 2021122 to UGX 4,131 .10 Bn in FY2022123.

The decline in resources budgeled for LG progrcms con lorgely be ottributed to re-centrolizotion of funciions ond resources which ore supposed to be o mondote of LGs.
Re-centrolizoiion of finoncing for instonce through the UGIFT progrom ond hybrid procurement hos been found to couse unnecessory deloys ond olso couse ombiguity in occouniobility responsibility.

According fo Ministry of Locol Government, over 80,337,176,025 UGIFT unspent bolonces wos returned by locol governments of the close of lost finonciol yeor.

These funds were meont for construction of seed secondory schools ond heolth cenires.
Discretionory Devt equolizotion gront- DDEG) ovoiloble to LGs hos been rernoved.

Equolisotlon gront is the money to be poid to locol governments for giving subsidies or moking speciol provisions for the leost developed districts; ond sholl be bosed on the degree to which o locol government unlt is logging behind the notionol overoge siondord for o poriiculor service."

"i'','t,,' :i A i I * 1.,,t'i i i i t'1",.

: i'- ; ;;r i f; *1,",,r I li i:l l: i: t:; ;.

: .. .

t.,iltl tr,., .1,5?7,'000.5tr .

:,:,.


: i'i r:i '1'i],l.lrl;-l: l;!']

,)i\;,.:.

.itli,tt::.

,:):L;t;,...,,...4), :iif .. 4 ffil,ryp; 0 I :.'

,lt Source: NBFP FY 2021/22-FY 2022/23 Page I 11 Alternotive Proposition Government shou/d deepen fisco/ decenfralisofiont through increosing the proporfion of resources allocofed fo Local Governmenfs.
The funds fhof ore currenfly oppropriofed to cenfrol governmeni MDAs buf ore meanf for LGs shou/d be appropriated direcfly under fhe respective beneficiary LGs fo ensure fimely usoge of fhe funds.

fox co//ecfion unifs shou/d be estob/ished in oll locolcounciis lo reduce on fhe high number of od hoc fox co//ecfion unifs fo enob/e increoses on locolrevenue collecfions.
fhere is need to fransform inf ormolseclor businesses /lke SMEs fo formcsl secfor af disfricf /eve/s fhrough enforcing compulsory regislrafion ond /lcensing of businesses.

Ihls will increose fhe fox bose of locol revenue in local governmenfs ond boosf revenue collecfions in fhe long run for se/f-susfoinobilify of locol disfricfs.

Governmenf shou/d re-engoge in fhe decentralisotlon discourse critically, given ifs crilicol role in empowering LGs in decision making ond promoting inc/usive plonning ii.
Undermining the Principle of Decenfrolizotion.

Article )7 6, (2b) of the Constitution of the Republic of Ugondo (l 995 os omended) odopts decenirolizotion os the principle opplying to oll levels of Locol Government ond, in porticulor, from higher to Lower Locol Government unlts to ensure peoples' porticipotion ond democrotic control in decision mokingz.

However, Locol Governments hove remoined subservient to Centrol Government thereby undermining the ihrust of Decentrolizotion.
Hcrving most of the locol ociivities like recruitment, owording of controcts performed by Centrol Governrnent ond the remittonce of locol revenue to the consolidoted fund undermines service delivery of locol level ond the pursuit for Decentrolizotion.

This reiords the LGs from effecting iheir strotegic plons ond objeclives thus undermining development.
Such functions ore witnessed os rnCIny Residence District Commissloners toke over powers of the politicolly elected leoders like District Choirpersons who ore mondoted to be politicol heods of the Districts os per Article l83.

(l )(o) of the constitution of Ugondo.

The Public Finonce Azlonogement Act (PFMA) ,2015, in some respects curtoils the powers of the Locol Governments enshrined in the Fourth Schedule of the Locol Governmenis Act.
The oct took owoy powers of LGs to opprove vioments (section I World }onk,2021.

Decentrolisotion ond Subnotionol Economics http://wwwl.worldbonk.orq/publicsector/decentrolizotion/fiscoi.htm lost occessed 25th Feb 2022 2 Locol Government, 2020.

Locol Government development plcnning guidelines Page | 12 22), supplementory budgets ond re-ollocotions ond vested this power to ihe Minister of finonce.
This, therefore, undermines the budgeting ond plonning powers bestowed on LGs by orticle 176 of the Constitution of Ugondo; this olso mecns thot opprovols by Councils ond District Executive Committees (DECs) ore inconsequentiol given ihot the minister con reject whot these structures hove opproved.

Alternotive Proposition Hormonize fhe LocalGovernments Acf, fhe Public Finonce Mctnogement Acf ond the Local Governmenfs /Finoncial and Accounfing) Regu/ofions,2007.

iii.
iii.

Unpreporedness for Operotionqlizotion of Newly Estoblished Administrotive Structures.

Unlike Kompolo Copito City Authority which is reguloted under the Kompolo Copitol City Ac1, ihe newly creoted ciiies of Aruo, lrAbororo, Gulu, Jinjo, Fort portol, Mbole, Azlosoko, Soroti, Hoimo ond Liro (with Moroto, Nokosongolo, Entebbe, Kobole, Wokiso to be operotionolised in FY2022123) lock on enobling fromework to guide their operotions.
Although Section 4 of the Locol Governmenf oct equotes o City to o District, o presumption thot cities operote os districts.

The slow commencement of the full operotionolizotion of Cities retords Development.

For FY 2022123 Government hos prioritised funding worth Ugx 60.60 billion for operotionolizotion of the newly creoted cities ond Ugx BB.0B Bn3 for operotionolisotion of the newly creoted Town councils ond Sub counties.
The operotion of these newly odministrotive structures in Cities ond Town councils remoins CI costly undertoking in terms of infrostructures ond odministrotive operotions like stoff solories ond equipment.

Some of the newly estoblished odministrotive structures lock offices ond continue',to operote in the mother structures which breeds conflict.
Alternotive Proposition Parliament through Local Governmenfs should develop sioluiory criferia upon which creation onC opprove of new odministrofive enfifies shou/d be unCerloken bosing on benchmorks in ferms of revenue collection, populofion omong ofhers.

l.e.

for o Municipol Council fo be upliffed fo fhe level of cify, it sttould be oble fo collect a given ornount cf locolfunds for o given pericsd of time.There is an urgent rr A/oFPED, 2022.
Notionol Budget Frome Work Poper FY 2022-23 Page | 13 need to halt the creafion qnd operafionolizafion of new administrative unifs until fhe creofion criferict and cify low encsctmenf legislofion ore fino/ised.

iv.

Deloyed Disbursement of Funds To Locol Governments Tronsfers from Centrol Government moke up the lorgest proportlon of Locol Government Revenues.
For oll governmeni entities including locol governments the funds received os tronsfers from centrol government ore supposed to be spent by close of the finonciol yecr on 30th June or else the unspent funds ore remltted bock 1o the consolidoted funds.

However, over the yeors locol governments ore denied the opportunity to spend some of the budgeted for funds os they ore sent towords the close of ihe finonciol yeor.

For instonce, occording to OAG report FY20201214, Budget supporf for USMID.
MoFPED disbursed UGX.22.I43Bn to AAoLG for subsequent tronsfer to the vorious Locol Governmenis.

The MoLG tronsferred the funds to the LGs very lote, Only UGX9.4Bn (43%) wos tronsferred to the vorious Locol Governments in the lost two weeks of June 202) .

Additionolly, the MoLG disbursed UGX.6.79Bn to 125 Locol Governments os stort-up funds however in some coses it wos disbursed to LGs os lote os 29th June 2021.
Deloyed disbursements coulcj be the reoson why despite the low funding, LGs hove continuously foiled to obsorb the little funds extended io them, Deloyed disbursement of funds implies thoi the beneficiory Locol Governments ore deprived of time io implement plonned octivities.

Some funds for Locol governments ore opproprioted in other MDA Votes.
Alternotive Proposition MoFPED shou/d always ensure f ollow up with relevanf MDAs lo ensure thaf f unds disbursed through them fo LG ore subsequenfly re/eosed in o fimely manner or foilure to do so peno/lies should be imposed.

MoLG and Loccsl governmenf Finonce commission (LGFCI shou/d strengthe n ifs role of Coordinotion of finoncing befween fhe Minisfries, Deportments, Agencies;and the LGs.
Accounfing officers of MDAs who deloy to disbu,'se Locol Governmenf funds received without a reosonob/e exp/onction shou/d be peno/ised.

'1 OAG, 2a22.

Annctol report of the Auditor Generol to Porliomenl for ihe FY ended 30 June 2021 Page I 14 v. Unopproved District Development Plons.

Article 190 of the Constitution of the Republic of Ugondo (1995) mondotes ond obliges District Councils to prepore Development PIons for submission to the Notionol Plonning Authority.

Following the odoption of the NDP lll.


oll LGs were expected to develop DDPs which ore in line with the NDPlll, by Febru ary 2022.

Out of 17 6 sampled entities thot were supposed to prepore strotegic plons oligned to NDPlll, only 28 (16%) hod their strotegic plons certified by NPAs.

District Development Plons ore o key function in the plonning process.

Foilure to odhere to these requirements foults the intended torgets for the budgeting processes.
It hos olso been ncted thot there is slow odoption of progrom-bosed budgeting of LG, there is still hongover of the sector wide opprooch.

This, coupled with the un opproved DDPs hompers the efforts of the NDP lll to increose coordinotion ond creote beiter linkoge of resources to results ond reduce ihe 'silo' opprooch to implementotion.
Alternotive Proposition Pcsrliomenf shou/d summon fhe LGs fhof hove not submiff ed fheir sfrofegic p/ons fo Nofiono/ Plonning Authority fo exploin fhe bosls of fheir plonning.

Locol Governmenls which do not submif fheir DDP in fime shou/d be panelised ond lheir budgets shou/d not be opproved by Pailioment unfil fhe have lhon so.

vi.
vi.

Unsustoinoble Locol Council Estqblishments Ihe Ministry of Locol Government increosed the number of councillors in most districts os o result of estoblishment of new odministrotive units.
Currently occording to AAinistry of Locol Government doto, there ore 135 districts in Ugondo, l0 Cities, 3l Municipolities, 2,)84 Sub -Counties, 10,595 Porishes, 70,626 Villoges, 580 Town Councils, 89 AAunicipol Divisions, ond 20 City Divisions.a This increoses odminislrotive cost in focilitoting City ond District councils.

For FY 2021122, Ugx 8,590,810,685 wos opproprioted os supplementory for ex-grotio, honororio ond councillors ollowo nces.

Over yeors, councillors hove not been inducted.


lnducting new councillors enobles them to effectively toke on their responsibilities of monitoring ond overseeing of Government progrommes.

5 NPA, 2022.

GDP Assessment Stotus os of 23r(i Feb 2022 6 Mrnisiry of Locol Government, 2020.

Admlnistrotive Units.

https:llfr,qlg.gp.ffgl lost ossessed 25rh leb 202?

Page | 15 Alternotive Proposition Ihere is need fo reduce on fhe number of oll polificolofficers i.e.
Loco/ Leoders in eoch dislricl through reviewing of Locol Governmenl Sfruciures.

This willreduce on fhe odminisfrative cosls and willsove fax payer's money.

Sub-counfy Town Council Councillors shou/d holci af /eost o Primory Seven Certificofe, Disfricl Counci//ors Shou/d hold ol /eosf a senior six Certificafe, Municipolify Moyors shou/d hold of /eosf o senior four cerfificafe, Cify Division Councillors shou/d hold ctf /eosl o senor four cerfificafe.

vii.
vii.

lnodequote Locol Revenue Mobilisotion Locol Governments cre constitutionolly empowereci to control, reguloie, ond roise revenues from octivities in their jurisdiction.

ln so doing, ihey ore supposed to impose some toxes ond roles on locol economic octivities io generote locol revenue for their operotions.

The Constitution ond Locol Governments Act olso provides for sources of locol revenue where LGs should benefit.
However, during the ossessment, some Locol Governments reported thot they experienced shortfolls in locol revenue collection.

For instonce district such os Koobong, AAoroto, Albtong etc collect less thon l% locol revenue of their totol onnuol budget.
This hos been ottributed to LGs' lock of vioble sources of revenue, inodequote copocity to collect revenue, lock of locol revenue tox enforcement teoms, tox fotigue, Iock of outomoted tox collection systems, stoffing gops ond foilure to mobilise potentiol toxpoyers to poy tox.

lnterferences by the ormy in locolly roised revenue for fishing communities hos olso been o mojor concern.
The presence of the ormy oround lokes hos prevented LGs from reolising rushed revenues from permits for fishing, boot registrotion, fishing sites omong others.

Royolties to iocol governments ore not reimbursed from the centrol Government os well Alternotive Proposition LGFC shou/d follow up ond ensure ifs odvice on Financing of LGs is taken up by Cobinef .

There is o need to further supporf LGs in locol revenue ossessmenf, mobilisafion ond collecfion.
There shou/d be incenflves in p/oce for LGs f o collect more locol revenue.

There is o need lo revive fhe infergovernmenfol revenue shoring system, which would incentivize Loco/ Governmenfs fo collect locol revenue like Vof .

LGs should be oided fo create oppropriote Finonciol Sysfems fhof enoble f heir c/lents to poy LocalRevenues ol Remofe poinfs.

Page | 16 viii.
Page | 16 viii.

lnodequote Humon Copocities of Locol Governments Inodequoie Humon Copocities of Locol Governnrents ore hondicopped by shortoges of stoff, lorgely ottributed to iniernol deloys in recruitment, limitotions in the woge bill ond inobility to ottroct ond retoin highly quolified personnel.

Curreni stoffing levels ccross Locol Governments stond of 56 per cent ond 5/ per cent for Districts ond Municipol Councils respectively; ond 49 per cent for key strotegic positionsz.
Also, B0 per cent of the filled positions ore odministrotive ond support stoff, leoving o vost mojority of core technicol posilions vocont.

This hos been worsened by the effects of Covid-19.

Alfernotive Proposition There is need f or fhe Minislry of Locol Governmenf f o engoge the Minisfry of Public Service and fhe MoFPED fo odjusf sfoff ceilings ond wage bil/ respecfively especio//y f or fhe disiricfs that lock crificolond sfrofegic sfoff.

ix.
ix.

Un-functionol Locol Government Accountobility Structures According to section BB of the Locol Government Aci, the LGPAC is expected to exomine the reports of the Auditor Generol, Chief lnternol Auditor ond ony reports of Commissions of Inquiry ond moy, in relotion to the reports, require the otlendonce of ony councillor or officer to exploin motters orising from f he reports.
Seciion BB (10) of the Locol GovernmentActstotes thot the expenses of oll Locol Government public occounts committee sholl be met by the district council.

The effective functionolity of the LGPACs, despite their vrell-orticuloted mondote in Sec BB of the Locol Government Act, hos foced o series of chollenges ronging from work bocklog, inodequote finoncing, ond the lock of oction on their recommendotions lo the Choirpersons of the Council, Chief Administrotive Officer or Town Clerk.
The obove chollenges continue to undermine ond compromise the LGPAC's oversight role.

lt is construed thot increosed finoncing of LGPACS will improve delivery on iheir estoblished mondote.

Indeed, the positive relotionship between the level of finonclng of LGPAC octivities ond performonce.

LGPACs thct ore noi well finonced do not convene regulor meetings to ccnsider oudit reports ond ti is very demotivoting whenever their recommendotions ore not followed up.

/ Local Government, 2019.


Performance Assessment Report FY 2018/2019 Page | 17 Alternotive Proposition Ihe Minisfry of Loco/ Governmenf ond Sfokeho/ders oughf to focus on strengfhening occountobilify ond oversight ctf the Locol Governmenf level for improved service.
Ihis con be ochleved fhrough severolintervenfions including continuous troining and menforship of Locol Governmenf /eoders ond sfrucfures of localCouncils on their roles ond responslbi/ifies, deepenln g public porficipotion ond oversight wifhin Local Governmenfs.

fhere is need to empower exisfing locol sfruciures wifhin the Locol Governmenf sef up fo be drivers for occounfobilify of the local level.
This would focilifate regulor service delivery-relofed engogemenfs belween Locol Governmenfs, the various committees (Youlh Councils.

Women Counci/s, Associo/ions for Clder persons, Porish Developmenl CommilleesJ ond odminisfrative units fo spur developmenf ctnd promote accountability.
fhere is need fo ensure appropriole budgeting ond odequafe budgef ollocafions fo lhe f unctioning of fhe LGPAC fo ensure fhof it con be able to meet regulctrly ond conduct public hearings, invesfigofions ond field verificofions where necessoly'.

Copocity Building.

Confinuous copocify developmenf is o key ingredient for the effective operofions of LGPAC.
Ihe Ministry of Local Governmenf ond Minisfry of Finance, Plonning and Economic Developmenf, cnd the Office of Auditor General shou/d ensure fhctt fhere is o need for regulor trcsining for LGPACs.

LG PACs ore likely lo moke mlsiokes whenever fhey are not obreosf with fhe new po/icies ond financiol guidelines from Cenfral Government.
x. lnefficient Flonning And lmplementotion Of Porish Development Model (PDM) Government of Ugondo lounched the Porish Developmenl Model (PDM) on Februory 26,2022 in Bukedi sub-region.

The Porish Develooment Model (PDA/) wos initioted ond odopted, with o porish os the key odministrotive unit for implementotion of Government Progrommes ond os the best suited delivery mechonism for the ottoinment of NDPIII development gools of ihe grossroots level.
The model oims to lifi 39% (obout 3.5 million people) of households from the subsistence to money economy.

ln the FY 2021/22, Shs200 billion wos budgeted for the entire model, of which shlB2billion hos been opproprioted under locol governmeni, with shl20billion os the revolving fund for the identified porishes in the 146 district/10 Cities of Ugondo.

lf well implemented.

PDM would eventuolly contriburte to inclusive growth, employment ond sustoinoble weolth creotion ot householcl level.
However, the previously Lower Loccrl Government such os sub county hos not been performing well due to weok monitcring, limited funding ond Page | 18 high levels of corruption ond obuse of office.

The oppointment of the Notionol Resistonce Move,'nent representotive on the porish committee mokes the intervention politicol.

The PDM still hos shortfolls like (i) the need to consider the populotion sizes of eoch porish while ollocoting funds.
(ii) Focilitotion of Porish Supervisors (out of ihe 5,600 vocont Posts for Porish Chiefs, only 5,495 ore recruited).

There exist copociiy building oworeness obout tf,e 7 pillors of the PDM, rotionolizotion of UWEP funds inio ihe PDM is unreolistic.

Alternotive Proposition Strenglhen fhe monitoring componenf of fhe PDM and ensure ifs proper occounfobility, equify ond non-portison 4.
Conclusion For Locol Governments to fully ochieve ihelr mondote of guiding, monitoring, mentoring ond odvocoiing for service delivery in Locol Governmenis, there is need for coordinoted efforts beiween Porlioment, AADAs, ihe Executive ond key stoke holders of Civil Society, Privote sector ond Development Portners.

li's key thot this Alternotive Policy stotement is given ottention to the issues roised.

Page | 19