Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698931383249.pdf (Uganda)
RIPUBLIC OF UGANDA PARLIAMENT OF UGANDA REPORT ON THE NATIONAL BUDGET FNEMAWONX PAPER r.OR ffIE TT 2O21/22 COMMITTEE ON PUBLIC SERY'CE AND LOCAL GOVERNMENT (.
Parliament Building Kampala-Uganda h"q JANUARY 2O2I I : ACRONYMS AG bn CAIIP CAO CSCU DSC Auditor General Billion Community Agriculture Infrastructure Improvement Programme Chief Administrative Officer Civil Service College Uganda District Service Commission EDMS Electronic Document Management System ESC FY GoU GRE HSC ICT IFMS IPPS Education Service Commission Financial Year Government of Uganda Graduate Recruitment Exercise Health Service Commission Information Communication Technologr Integrated Financial Management System Integrated Personnel and Payroll System KCCA Kampa-la Capital City Authority LG LGFC MDAs Local Government Local Government Finance Commission Ministries, Departments and Agencies MAAIF Ministry of Agriculture, Animal Industry and Fisheries MATIP Markets and Agriculture Trade Improvements Programme MC Municipal Council MEMD Ministry of Energy and Minerals Development MoES Ministry of Education and Sports k-*+1 2 ss'," MoFPED Ministry of Finance, Planning and Economic Development MoLG MoPS Ministry of Local Government Ministry of Public Service MoWT Ministry of Works and Transport NBFP National Budget Framework Paper NDP NPA National Development Plan National Planning Authority PFMA Public Finance Management Act PRELNOR Programme for Restoration of Livelihood in Northern Region PSC PSPF Public Service Commission Public Service Pension Fund SDGs Sustainable Development Goals TCs tn UGX UNRA URA URF Town Councils Trillion Uganda Shillings Uganda National Roads Authority Uganda Revenue Authority Uganda Road Fund $'.
Ie"*l t SM 3 ,l|'*'il t 1.O Introduction Under section 9(71 of Public Finance and Management Act 2015 and section A3(2) of the Rules of Procedure of Parliament, the Committee on Public Service and Local Government is mandated to consider, discuss and review the indicative allocations under its jurisdiction.

Pursuant to this Act and the Rules of Procedure of Parliament, the Committee considered the National Budget Framework Paper for Financial Year 2O2ll22 for Public Service and Local Government.
2.O Methodology In considering the indicative budget estimates, the Committee reviewed the following documents: (i) (ii) (iii) (iv) (v) The National Development Plan (NDP III); The National Budget Framework Paper for FY 2021 122 - FY 2024 /2025; The Public Sector Management BFP f.or 2O2l122 - FY 2024/2025; The Committee NBFP Reports of FY 20l8l20l9-FY 2O2Ol2I.
The Performance Implementation Action Plans (PIAPs) for the various prograrnmes 3.O Mandate of the Committee on Public Senrice and Local Government Under rule 143(2) of the rules of procedure of Parliament, the Sectoral Committee on Public Service and Local Government is mandated to consider, discuss, review and oversee the following sectors and votes: (i) Vote 005 Ministry of Public Service Public Sector Transformation Programme; (ii) (ii0 (iv) (v) Vote O 1 1 Ministry of Loca-l Governments- Regional Development; Vote 146 Public Service Commission-Public Sector Transformation; Yote 147 Local Government Finance Commission- Agro-Indu Votes 501 Indu s triali zation, and Regional Develo pmen t. 85O Local Governments- Integrated Transfers, Agro- M \ i'' i{*^l-t 4 /t ,, 4.O Cross Cutting Issues 4.7 Compliance on @nder and.
Equitg requirements Section 9 (6)(a) and (b) provides that the Minister shall, in consultation with the Equal Opportunities Commission, issue a certificate; certifying that the Budget Framework Paper (BFP) is gender and equity responsive; and specifying measures taken to equalize opportunities for women, men, persons with disabilities and other marginalized groups.

This provision was met as required by law.


However, the Gender and Equity Certificate was issued on the basis of the recently created eighteen (18) programmes and the entities the Committee provides oversight to with; Votes 501 - 850 Local Governments and Yote 147 Local Government Finance Commission categorized under Agro Industrialization scoring 68 percent, Vote 005 Ministry of Public Service and Vote 146 Public Service Commission categorized under Public Sector Transformation scoring 62 percent.
Vote 01 1 Ministry of Local Government categorized under regional development was not graded due to late submission and at an appropriate time, its performance will be availed.
The Committee makes observation though that across the board, the attainment of gender and Equity compliance is still affected by the; limited awareness of Gender and Equity in Performance Management Frameworks; females, and the physically handicapped applicants have continued to face unique challenges in the job market ranging from direct discrimination, to access barriers like inability to communicate clearly; Non-observance of gender and equity issues in planning and budgeting leading to serious inequities; Low documentation of Gender and Equity and low level of compliance to the few requirements in existence; and low mainstreaming Gender and Equity issues in the training curriculums, all Prograrnmes and Projects, Work Plans and Budgets.
M These and other issues are evidence of an apparent lack of capacity by these MDAs to fully ensure compliance to gender and equity issues.

Some of these challenges, the committee observes have recurred over a period of time with no deliberate strategies by Government to address them.
For the attainment of Gender and Dquitg compliance, the Committee recommends for; ,ffi'' \ l}"'il 5 L $id' O The entities under its puntieus uorking together utith the Equal Oppordtnities Comrnission to make d.eliberate efforts to enhance their capacitg to improue gender and equitg responsiaeness.

00 Mainstreaming gend.er and equitg inthe Performance Management ?rameutorks and monitored durlng Support supertision; Reuieut grants allocation fortnula and models in light oJ policies to in-build gender and.
equitg; Prouide preferential treatment of the Females (pregnant uromen and lactating mothers) and.

PWDs at the u.tork place; Undertake Training for knder and Equltg Budgeting; and Increasing funding to specificallg address @nder and Equitg relatpd.fssues.
4.2 Compliance utiththe Sustainable Deoelopment Goals The Committee observes that the BFP reports presented are tandem with the 2030 Agenda for Sustainable Development specifically; SDG 1 which is directed towards ending poverty in all its forms eveqnwhere.

This is to be implemented under the regional development programme coordinated and by Vote 0 1 1 Ministry of Local Government and Vote 500 Local Governments (Vote 5O 1- 850).
It is aimed at reducing poverty in the sub-regions lagging behind the average poverty line of Uganda, including; Bukedi, Bugisu, Busoga, West Nile, Karamoja, Acholi, Teso and Bunyoro.
These communities will be mobilized, organized and supported to increase production through; Increased production capacity of key growth opportunities; Increased household earnings in the sub-regions by manufacturing; Improved infrastructure in the sub-regions; Increased value-added products in the sub-regions; lncreased market access and value addition; and Improved leadership capacity for transformative rural development.
SDG 2 which is directed towards ending hunger, achieving food security and improved nutrition and promote sustainable agriculture falls directly under the agro- industrialization prograrnme which will be implemented by Vote 147 Local Government Finance Commission and Vote 500 Local Governments (votes 501-850) which seeks to Enhance value addition in Key Growth Opportunities by aggressively promoting agro-industrialization especially in the Local Governments that have an enormous potential of adding value to the country's sizeable agricultural output as a means of boosting inclusive growth and creating productive employment across the country.
This move is envisioned to eliminate hunger, famine and poverty by M -, \\$(--""' I t {r restructuring traditional subsistence agriculture into modern commercialized agriculture.

SDG 8 which is directed towards promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Vote 005 Ministry of Public Service and Vote 146 Public Service Commission are clustered under the Public Sector Transformation Progrannme which is projected to strengthen the role of the state in guiding and facilitating development.

This is to be achieved through increasing the effectiveness and efficiency of the public sector in response to the needs of the citizens and the private sector with Vote 005 Ministry of Public Service taking the lead of twenty-two other entities to implement this progra-mme.
4.3 Compliance to Cotid-7g Measures The Committee observes that the COVID-l9 pandemic has awakened the world's view on many aspects of life, economy and public administration.

Inevitably, several areas of the economy, public administration and governarlce that require competent human resources have no choice but to adapt to the changes caused by the pandemic in order to ensure continuity of service delivery.
It is however worthy noting that occupation Health and safety standard in relation to COVID- 19 are not well complied too by MDAs and LGs; and that there are inadequate post Covid-l9 measures to enhance staff performance The Committee recommends for the; Prouision of Personal Protection Equipment to Members and staff; Adhering to tlrc Coaid-tg Stz,ndard Operating proceduresl Proaision of online Jacilities to encourage out of ollice usork; Support COVID 79 Intententions through sensitization and prouision of equipment's; Undeftake Systems Re-Engineering efforts to adopt post COVID and.
perforrnance Improaement; Update the inspection check to includes preventlon safetg measures on COVID 79 and conduct compliance checks uthen carrying out inspections; and.

Prouision of COVIDT9 SOP lcits and period.ic Testing of staff at the MDAs as utell as the LGs, 4.4 Compliance to Climate change and Enuironmental issues The local and global environment is being impacted by the activities of man.

This is greatly contributed to by the entities under the Committee's purview.
The Committee observes that; There is a failure to Mainstream Climate Change in Plans and Budgets by these entities; Non-observance of environmental issues d i N#i e'J-t .

!

7 lt , planning, budgeting and allocation by the entities; and Poor Hygiene in the Office which all greatly affect climate change.

The Committee recommends for; Assessing the LGs budgets (especially proJects profttes on their attention to enuironmental and social safeguards) ; Deuelop guidelines for m'alntaining good.
hggiene in the OtJices especiallg during COWD-79; and Conduct routine &,Periodic Inspection in MDAs and LGs to ens;ure m.ainstreaming of climate change in the Budgets and utork plans 4.5 Compliance uith Human Rights The Committee makes note of the observance of the rights of employees to various services at the place of work by the entities under its purview which include; timely and adequate remuneration of staff; mainstreaming workplace HIV/AIDS activities through the provision of support to HIV/AIDS infected and affected persons; facilitating and conducting physical fitness classes for staff by these entities; maintaining appropriate standards and procedures relating to staff recruitment, confirmation, promotion, and discipline; provision of occupational safety and conducive working environment; and providing timely support services and facilities to stalf.
4.6 Compliance utith Parliamentary recommendations The Committee observes that whereas Parliament made a number of recommendations that have financial implications in the previous BFP.

It is evident that much as the entities have taken effort to address these recommendations, they have not been fully realized.

It should also be noted that the Committee is not satisfactorily informed of the leve1 at which recommendations have been achieved.
The Committee recommends that the entities und.er its puntieut should prioritize the recommendations bg giaing an update of the actions taken to address these issues especiallg those factored in to the next FY 2021/22 in the medium term.

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1 r2 13 l4 15 5.O Table 1: Ovenriew of the Resource Envelope for ?Y 2O2L|2O22 (UGX.

Billionsf The total resource envelope for the FY 2O2l122 is projected at UGX.
45,493.7tlo., disaggregated as in the table below: s/N Source FA 2O2Ol2t Fv 2O2Ll22 Domestic Revenues Budget Support Domestic Financing (Borrowing) 2L,809.7 2,906.7 3,O54.2 21,693.2 3,662.r 2,483.8 Project Support (External 9,515.3 8,574.9 Financing) Domestic Refinancing Appropriation in Aid (AIA) Draw down from Government Deposits 10 BOU Recapitalization Total Resource Inflow ll+2+3+4+5+6+7) 7,486.1 2t5.6 24.4 48t.7 45,493.7 8,547.O 2r5.6 48t.7 45,658.2 {t,826.21 External Debt Repayments (L,228.91 (Amortization) Project Support (External (9,515.3) (8,574.9) Financing) Domestic Refinancing Domestic Arrears Recapitalization GOU MTEF: Resource Envelope Less External Debt Repayments, Project Support, Domestic Refinancing, Arrears and AIA 16 L7 Interest payments GOU MTEF: less interest payments Source: MFPED & PBO Computatlons h"\ ,rl l.
\rs., .)'

', (7,486.I1 (4so.0) (48t.71 26,33L.6 (4,049.5) 22,28L.t M (8,574.0) (400.0) (48r.71 25,828.4 (4,960.5) 20 ,867.9 7,<, 9 T,,L /tl 5.1 Budget Strategy FY 2O2Ll22 The FY 2O2ll22 Budget and Medium-Term Strateryis anchored on two (2) issues and these are; (i) (ii) Policy interventions required to sustain recovery from the socioeconomic setbacks caused by Covid- 19 as well as harness the opportunities that come along, and; The Third National Development Plan (NDP III).
All these are critical for maintaining progress towards achieving Uganda's Vision 2040.

While the economic strategr of the NRM Party in its Manifesto and the NDP III is centered on "Securing the Future" of citizens by creating wealth and jobs for a better quality of life.

The strategy is focused on three broad interlinked growth agenda which are central to developing and harnessing the factors of production.
These are: a) b) c) Accelerating the pace of industrialization, research and innovation to enhance value addition to agriculture and mineral commodities.

Building an integrated and self-sustaining economy by enhancing the capacity for import substitution and export markets access; and, Strengthening the private sector by improving enterprise competitiveness, partly through increased efficiency and effectiveness of public sector investments.
The strategic interventions to sustain economic recovery and spur growth will entail the following broad interventions; i) ii) iii) Expanding the economic base, through productivity enhancement in agriculture, the development of oil and gas resources and diversification of the growth corridors to ensure equitable regional development and economic opportunities, especially for the youth.

Prudent macroeconomic management, which is critical to lessen the negative impact of the current socioeconomic issues.
Enhancing competitiveness: This will require Government to address issues of low agriculture productivity, the narrow export base, high cost of capital and electricity as well as inadequate infrastructure network regional trading partners, particularly DRC and South Sudan for have reached agreements for joint development.
Nd I [u.1 .wi 10 ,/^,1 ( 5.2 DEVELOPMENT OBJECTTVES AND BUDGET PRIORITIES FOR F'T 2O2t I 22 The Budget for FY 2021122, under the theme Industrialization for Inclusive Growth, Employment and Wealth Creation, will seek to achieve the following development outcomes: i) Increased investment in the real economy in order to generate employment and increase products for import substitution and exports.
Enhanced quality of social services to build human capital, especially the youth that constitutes a majority of the population.

Enhanced efficiency of physical infrastructure to boost productivity.

Improved provision of affordable linancing to unlock entrepreneurial potential and improve competitiveness.

Enhanced efficiency of Government spending and development interventions as well as effectiveness of public service delivery.
ii) iii) iv) v) 5.3 Resource Allocations at Programme Level The Budget Strategr and resource allocations for FY 2O2L 122 have been done along the programme approach, premised on the eighteen (18) development prograrnmes identified in the third National Development Plan.

The rationale of this prograrnme approach is to improve prioritization and eliminate the silo approach to budget implementation and the associated duplication, inefficiencies and wastage.
Consistent with the budget priorities, over 80 percent of the discretionary resource for Fiscal Year 2O2ll22 has been allocated to support the budget strate5/ in the areas of agricultural production and agro-industrialization, infrastructure development, public health, sanitation and skilling as well as governance, and the rule of law.
5.4 The 18 programme MTEF allocations for FY 2O2Ll22 The allocation of the resource for the FY 2o2ll22 has been the sector priorities, taking into account budget performance and macroeconomic assumptions for FY 2O2l122 and the medium term.

WF The Ministry of Finance, Planning and Economic Development has budgeted UGX.
:: i.. - -.i Ntr ., '.. k,,*"j 1L 1., 45,658.7bn as the National Budget in the resource envelop, that is to be shared in the proportions shown in the table 2 below and this is guided by the sector priorities, taking into account budget performance and macroeconomic assumptions for FY 2O2Il22 and the medium term.
The eighteen (18) NDP III Development programmes to be implemented in the FY 2O2l/22 are consistent with the budget priorities, and has been allocated 64.7 percent and the memo items 35.3 percent of the total resource envelop receptively, whose major focus is "Increasing household incomes and improving the quality of life of Ugandans" From the analysis of the BFP the Domestic Refinancing takes the largest share of the budget 18.7 percent followed by Governance and Security prograrnme 16.9 percent, Human Capital Development at 15.4 percent, Integrated Transport Infrastructure Services 13.1 percent axd interest payments at 10.9 percent respectively.
The analytical results further show that eighteen (18) NDP III Development prograrnmes have been allocated to support the budget strate5/ in the areas of agricultural production and agro-Industrialization, infrastructure development, public health, sanitation and skilling as well as governa-nce, security and the rule of law as shown in table 2 below.

\ ry ; h"}l L2 L Jtlt , -1--- Table 2: Planned Expenditure and Resource Nlocations to the 18 NDP III Development Programmes (UGX.
Billionsf for the Fy 2O2L122.

s/N Source NDPIII Costing/Plan ned Enp.
for the IY 2021 I 22 Governance and Security 7,464 7,717.59 10,358 7,O43.86 Proposed Budget FY o/o Share of the PBO Computations 2O2Ll22 Proposed o/o Share of,the allocations Proposed allocations 26.1o/o 23.8o/o 16.9o/o 15.4o/o 8,467 5,968.80 20.2o/o 13.lo/o I Human Capital Development Integrated Transport Infrastructu re Services Sustainable Energr Development Agro- Industrialization Regional Development Development Plan Implementation Private Sector Development 1,514 1,634.70 5.5% 3,438 5,706 1,883 1,509.26 1,447.OO L,t93.24 5.1% 4.9o/o 4.Oo/o 1,306 648.36 2-2o/o 3.60/o 3.
3o/o 3.2o/o 2,60/o L.4% l.3o/o l.3o/o 0.60/o Climate Change, Natural 2,3L3 593.61 2.O% Resource Env't 10 Sustainable Urbanization 1,341 575.44 1.9o/o and Housing 11 Innovation, Technologr 978 270.86 O.9o/o t2 13 I4 15 16 Development and Transfer Public Sector Transformation 3,476 253.48 O.9o/o O.60/o Sustainable Development 1,146 235.48 O.8o/o of Petroleum Resources Tourism Development D igital Tran sformation Mineral Development M \ \ i 176.73 rot.77 80.57 1,910 2,440 904 q I !
O.60/o O.3o/" / O.3o/o (,ru O.5o/" O.4o/o O.2o/o o.20/o t t I7 18 Manufacturing Community Mobilization and Mindset Change 1,499 3,266 s2.76 35.35 O.2o/o O.Lo/o o.10h O.lo/o Sub Total 59,4O9.O 29,5,37.86 LOOo/o 64.7o/o *** Memo Items Domestic Refinancing Interest Payment External Debts Repayments (Amortization) Domestic Arrears Shortfall on Wages, Pension and Gratuity Appropriation in Aid/ Local Revenue 8,547.00 4960.47 13,651 t,826.25 400.00 170.O2 215.59 Sub Total (Memo Itemsf 16,119.33 GRAND TOTAL 73,060.O 45,657.L9 Source: MFPED & PBO Computations 18.7a/o LO.9o/o 4.Oa/o O.9o/o O.4o/o O.Sa/o 35.3% 1OO7o The overall planned expenditure for the 18 Development Programmes in the NDPIII in the FY 2o2ll22 was UGX.
59,409bn but only UGX.

29,537.86bn has been budgeted for or proposed in the resource envelop for the FY 2O2l/22 representing 50.28 percent.

e$)l-,4 The analysis in table 2 above indicates that the Resource Allocations to the 18 NDP III Development Programmes are not financially aligned to proposed budget for the FY 2o2ll22 as in the planned expenditure for the financial year as shown in the NDPIII Costing column above.
Only two programmes; Governance and Security, and sustainable ener5/ development meet their planned expenditure expectations for the FY 2O2rl22 t+"+r *$, \I i I 14 (, The Governance and security budget draws from the planned expenditure of UGX.

7,464bn in the NDPIII to UGX.

7,717.59bn in proposed budget and representing 3.39 percent more than planned.

While the proposed budget for sustainable enerry development was raised by 7.93 percent of the planned expenditure from UGX.

1,514bn to UGX.

1,634bn.


these two programmes represent 11.1 percent of the 18 NDP planned Development prograrnmes achieved in FY 2021122.

The analysis further indicates that, the 18 NDP III Development programmes shall take UGX.

29 ,537 .86bn of the proposed budget representin g 64.7 percent of the total resource envelop of UGX.

45,679.19bn.
45,679.19bn.

While the Memo Items sha-ll receive UGX.16,119bn representing 35.3 percent of which Domestic Refinancing and Interest payments shall take a share of UGX.8,547bn (I8.7%) and UGX.4,960.47bn (iO.9olo) respectively.

The External Debts Repayments (Amortization) is expected to get UGX.

I,826.25bn representing 4 percent of the total budget.

However external debt repayments are also not aligned to the planned expenditure in the NPDIII of UGX.

13, 651bn in FY 2O2l /22.


6.O Proposed Programme Plans under the Local Government Sector, Ministry of Public Service and the Public Service Commission.

This section of the analysis looks at the proposed programme areas and sub- prograrnmes under the respective sectors under the Committee on Public Service and Local Government that include; Ministry of Public Service, Ministry of Local Government, Public Service Commission, Local Government Finance Commission and the Local Governments.
The introduction of the 18 NDPIII programmes is action in the right direction to enable government and its MDAs to align resources and the outcomes as opposed to output oriented results that was difficult to use in measuring performance and the implementation of the Programme Based Budgeting To implement the above, National Planning Authority with the respective ministries have to developed Programme Implementation Action Plans (PIAPs) which have now replaced votes in the sectors.
td-rt M .N$i, 15 t, 6.1 Programme Implementation Action Plans (PIAPS) The Programme Implementation Action Plan (PIAP) outlines the key outputs together with their actions that will be delivered by participating institutions in response NDP lI[ outcomes under Programme 18 - Development Plan Implementation (DPI) over the period 2O2Ol2I to 2024125.
6.2 NDPIU Goal, Overall Strategy and Objectives The overall goal of the NDP III which is a five-year prograrnme from 2O2Ol2l to 2024125 is Increase Average Household Incomes and Improve the Quality of Life of Ugandans.

This goal is expected to be achieved through an overall strateS/ of sustainable industrialisation, for rrealth creation, employment and inclusive growth.
To achieve this goa[, five key objectives have been identified in the NDPIII and this include; (i) Enhancing value addition in key growth opportunities; (ii) Strengthening the private sector capacity to drive growth and create jobs; (iii) Consolidating and increase the stock and quality of productive infrastructure; (iv) Enhancing productivity, inclusiveness and social wellbeing of the population; and (v) Strengthening the role of the state in development Following a paradigm shift from sector-based planning to programme based planning approach, twenty (20) strategies for achieving these objectives were developed and 18 national level corresponding programmes were developed as indicated in the table 3below.
Table 3: NDPIII Objectives, Strategies and Programmes NDPIII Objective Strategies for achieving objectlves M\ National Level programme for achieving the objective (s) 1.

Enhance value addition in Key Growth 1.

Promote agro-industrialization 1 .

Agro-Industrialization 2.

Increase local manufacturing activity 3.

Promote mineral-based 2.Mineral Development 3.

Sustainable Opportunities industrialization 4.


Harness the tourism potential Development I Petroleum Resouyz( kr*q \ I w 16 t, -$u{c NDPIII Objective Strategies for achieving obJectives 5.

Promote export-oriented growth 2.

Strengthen private sector 6.


Provide a suitable fiscal, monetary and regulatory environment for the private capacity to sector to invest National Level programme for achieving the obJective (s) 4.Tourism Development 5.Natural Resources, Environment, Climate Change, Land and Water Management 6.

Private Sector Development 7.

Manufacturing drive growth 7.

Increase local content participation 8.

Digital Transformation and create jobs 3.

Consolidate & increase stock and quality of 8.


Institutionalise maintenance infrastructure 9.

Develop intermodal transport infrastructure 9.lntegrated Transport Infrastructure and Services 10.

Sustainable Energr Productive 10.

Increase access to reliable & affordable Development Infrastructure energy 1 1.

Leverage urbanization for socio- economic transformation 1 1.

Sustainable Urbanisation and Housing 4.

Increase productivity, inclusiveness and social wellbeing of Population.

12.
12.

Improve access and quality of social 12.

Human Capital services 13.

Institutionalise HR planning 14.

Enhance skills and vocational Development 15.

Increase access to social protection Promote STEI 16.

Promote development-oriented mind- set Development 13.

Community Mobilization and Mind- set Change 14.

Innovation, Technolory Development T?ansfer & 15.

Regional Development 5.

Strengthen the role of the State in development 17. lncrease govt.

participation in strategic 16.


Governalce and sectors 18.

Enhance partnerships with non-state actors for effective service delivery 19.

Re-engineer Public service to promote Security 17.

Public Sector Transformation 18.

Development NryI investment ,*; .--.'

l*Kir' h=*f \ |.

.., ; L7 1[,lL' :i NDPIII Objecttve Strategles for achieving objectives 20.
Increase Resource Mobilization Source: NDPIII FY 2O2O|2O2L-2O24125 e, (PIAPI National Level programme for achievlng the objective (s) Under the new arrangement the Committee on Public Service and Local Government has two prograrnmes that are spear headed by the Ministry of Public Service, Ministry of Local Government, Local Government Finance Commission and the Local Governments and others cross cutting in nature and this include; (i) (ii) Public Sector Transformation is spear headed by the Ministry of Public Service Regional Development is spear headed by Ministry of Local Government other agencies include; Local Government Finance Commission and Local Governments.
(iii) (iv) Agro- Industrialization cuts across and involves Local Governments.

Integrated Tralsport also cuts across to Local Governments.

The adoption of the programme approach to planning resulted into replacement of Sector Working Groups with Progratnme Working Groups.

6.3 Public Sector Transformation The Public Transformation prograrnme contributes to the NDPIII objective 5 whose aim is "to strengthen the role of the state in guiding and facilitating development".
This is to be achieved through increasing the effectiveness and efficiency of the public sector in response to the needs of the citizens and the private sector.

The Public Transformation Working group is composed of twenty-three MDAs and led by the Ministry of Public Service and other 22 member institutions.
6.3.1 Financial Analysis: Alignment of NDPIII Planned Expenditure/Costing Vs NBFP Allocations eqr Over the five-year programme under the NDP III, Government requires 20.2B1bn to accomplish the Public Transformation Programme.

!.

i.,-- NW'\'$':' K,,tli 18 ,tt l-- However, from the analysis there is no proper alignment of the programme costing in the NDPIII vis-i.-vis the National Budget Framework paper to meet the above projection.
In the FY 2O2l /22 th.e NDPIII had costed the programme at UGX.3,476bn and the proposed budget has been allocated only 253.48bn representing 7.29 percent of NDP III costing and this shows that there is no financial alignment between the proposed budget and the National Development plan in FY 2O2l /22.
Table 4a: Public Sector Transformation NDPIII Planned Expenditure Ff 2O2O/2L-2O2412s FINANCIAL 2O2O/2L 2O2L/22 2022123 2023124 2024125 Total Year 3,334 3,476 3,847 4,158 5,467 20,28L Source: Extract from NDPIII FY 2O2O|2L-2O24125.

Table 4b: Public Sector Transformatlon NBFP Nlocation Proposed Budget FY 2O2Ll22 MDA Wage Non Domestic 1[Iage Devt Ext Fin Total Excl Ext.Fin Total Incl.
Ext.Fin Y" share of the Total Programme Budget 00 1 Prime Minister's t7.8 73.14 15.00 105.94 105.94 4t.79% of office 005 Ministry Public Service 122 Kampala City Council Authority 146 Public Service Commission Total 5.23 t3.64 4.91 23.74 23.74 9.38o/o 41.85 41.85 4.06 114.24 114.24 45.O9o/o 6.O2 6.O2 0.18 9.48 9.44 3.74o/o 70.90 134.65 23.99 253.48 2s3.48 lOOo/o Source: NBFP FY 2O2l122- 2024125 The Public Sector Transformation programme contributes to the NDPIII objective 5 whose aim is "to strengthen the role of the state in guiding and facilitating development".
WH However, the analytical results show that, the Ministry of Public Service which is the lead agency in the implementation of Public Transformation Programme as in the National Development plan (NDPIII) doesn't reflect that in or x ',{*t1 '\M' t 19 r[, &f.

.

; allocations as shown in table 4b.

Kampala City Council Authority (KCCA) takes the biggest share of 45.O8 percent and the Office of the Prime Minister (OPM) 41.78 percent.
The NDPIII identified weak performance, low accountability for results and unsatisfactory work ethic in the public sector that does not adequately respond to the needs of citizens and the private sector as the major bottle neck to national development.
These bottlenecks were attributed to: (i) poor accountability systems and undue focus on processes rather than (ii) (iii) (iv) (v) results; Inefficient government systems and processes; Duplication of mandates; Inadequate talent marlagement across government; An inefficient and inadequately funded decentralized system of government; (vi) (vii) Limited computerization of government systems ; High level of corruption; and (viii) Ineffective and inadequate communication and feedback mechanisms.
The programme strategies to address the above bottlenecks include the following: l. 1l lll lv v Rationalization of agencies and comprehensive restructuring to eliminate mandate overlaps and duplications; Harmonizing the salary structure to eliminate disparities and distortions which compromise effective commitment to work and ability to attract and retain staff; Filling all critical positions and build capacity of local governments for effective implementation of decentralized government reforms ; Re-engineering, automating and integrating business processes to improve efficiency, reduce process turnaround time and hence improved client satisfaction; Leveraging on ICT to improve accountability for results on government prograrnmes to the citizens and automating all Human Management functions to improve talent management; Nry{ 'tr{.& \ I, 1 : \tilPr 20 t .LI.t _ :f"_ vi.
Supporting local governments to expand the existing tax base and increase efficiency and effectiveness of tax administration systems; vii.

Enhancing capacity of MDA&LGs in handling Ombudsman complaints and strengthening the capacity of anti-corruption agencies to prosecute and recover illicitly acquired wealth.

viii.
viii.

Transforming the public service culture from process focused and soloed to results focused, client centered, collaborative and innovative to address the challenges of Public Sector policy lags; ix.

Reviewing the Human Resource Management policy and regulatory framework to address gaps which tolerate nonperformance and compromise x. xi.
elimination of corruption; Introducing a competency-based recruitment system and strengthen collaboration with training institutions to enforce compliance to higher education institutions standards; Institutionalizing performance improvement-based approach to capacity building.

Table 5: Programme Outcomes and Target Program Goal Program Results Indicator Baseline To improve Public sector response to the needs of the citizens and the Private Sector.

1.

Increased Government elfectiveness 2.


Reduced corruption 3.
[ncrease the attractiveness of ,Year Target Government Effectiveness Index -o.52 o.o1 Corruption perception index 260/o 35o/o Uganda as an Global investment destination Competitiveness Index 48.9o/o 55o/o Source: Sector BFP 2O2l/22 6.4 RegionalDevelopmemt This program contributes to the four NDPIII objectives, which are; Enhance value addition in key growth opportunities; Consolidate and increase the stock and quality of productive infrastructure; Enhance the productivity and of the population; and Strengthen the role of the state in guiding social ting W $' 1 :,; 2t t u- *,,l.Lt" development.
The goal of the Regional Development programme is to accelerate equitable, regional economic growth and development.

The Ministry of Local Government is the technical coordinator and Ministry of Gender Labour and Social Development is the co-chair.

At the planning stage they will convene all stakeholders in the Program Working Group (PWG) including NPA to set the priorities for implementation.

The planned expenditure under the Regional Development over the five-year NDPIII is costed at UGX.
32,5o3bn and in the FY 2O2Ll22 the plan has costed the RDP at UGX.5,706bn.

However, in the NBFP for the FY 2O2ll22has been allocated L,447bn representing 25 percent of the planned expenditure.

From the tables 5a and 5b below it clearly indicates that the NPDIII planned expenditure is not aligned to the proposed/ allocated budget for the Regional Development Programme for the FY 2021122.
Table 5a: Regional Development NDPII Planned Expenditure FY 2O2O|2L- 20241 2s FINANCIAL 2O2O/2r 2O2r 122 2022123 2023/24 2024/2s Total Year 6,2r8 5,706 6,201 6,599 7,779 32,5O3 Source: Extract from NDPIII FY 2O2O|2L-2O24125 Table 5b: Regional Development NBFP Allocation/Proposed Budget Fy 2O2Ll22 W MDA Wage Non Wage Domestic- Ext Fin Total Development Exclusive Ext.Fin Total Incl.
Ent.Fin o/o share of the Total Programme Budget 006 Ministry of Foreign Affairs 01 1 Ministry of Local Government O2 1 Ministry of East African Affairs 5.72 24.O3 o.7 r 30.47 30.4?

2.lto/o 9.6r 9.62 61.06 196.O2 80.30 276.32 19.O9o/o 1.

14 29.37 o.92 3L.42 3L.42 2.17o/o \t$r:" \ : ; / t{-"1 ), l. 22 t !

147 Local Govt Finance Com.


20t-238 Missions Abroad 501-850 Local Governments Total r.62 3.54 0.16 5.31 5.31 37o/o 26.06 t47.t5 t7.87 191.O8 191.O8 13.2lo/o 286.24 474.O4 152.1 1 9L2.39 912.39 63.05% 330.39 647.76 232.44 L96.O2 1,25O.98 1,447.OO lOOo/o Source: NBFP FV 2o2ll22- 2o24125 The Key results of the Regional Development programme are to be achieved over a period of five years and are aimed reducing poverty in the sub-regions lagging behind the average poverty line of Uganda.
These sub-regions include; Bukedi, Bugisu, Busoga, West Nile, Karamoja, Acholi, Teso and Bunyoro.

However, the Ministry of Foreign Affairs, Missions abroad and Ministry of the East Africarr Affairs have been allocated UGX.30.47bn, 3l.42bn and 191.09bn respectively.
The Committee has been informed that the Composition of the votes that constitute the Regional Development programmes were composed or advised by MoFPED and National Planning Authority (NPA) and these included Foreign Affairs, East African Community, Local Government Finance Commission, Missions Abroad, Local Governments, and Ministry of Local Government.

For Budgeting Purposes, the MTEF of these entities were reflected under Regional Development Programme (RDP).
However, the inclusion of Foreign Affairs, East African Community, and Missions Abroad under the RDP was a configuration problem since Regional Development Programme is a an affirmative National programme for the poorest regions.

sM/ The Resources attached to these Agencies are their traditional previously allocated to these entities and as such these resources reallocated to RDP activities W k*u-t \ .
\ be 23 The affected MDAs have been relocated to Governance and Security Programme, but this is not reflected anywhere and the Ministry of Finance Planning and Economic Development and NPA should officially bring this amendment to Parliament.

The poverty reduction results are to be achieved through the following programme key results (Outcomes): 1.
Increased production capacity of key growth opportunities (Agri-business, Tourism, Minerals and Manufacturing) Increased household earnings in the sub-regions from ATM and manufacturing Improved infrastructure in the sub-regions Increased value-added products in the sub-regions Increased market access and value addition lmproved leadership capacity for transformative rural development 2.

3.

4.

5.

6.
3.

4.

5.

6.

Under these Sub Programs, communities shall be mobilized, organized and supported to increase production, improve productivity and develop Value Chains of the priority enterprises.

These efforts shall be reinforced with productive economic infrastructure across the regions to enable communities add value to their produce and access markets that are able to fetch them higher prices.
The program shall also invest in improving the performance of the Leadership and lnstitutiona] Structures at the Region, Local Governments and Community levels.

This is envisioned to facilitate the delivery of quality services, transparency and accountability.

The initiatives and efforts in the Program shall promote gender equity and human rights - to be free of any form of discrimination and conflict.
In so doing, the Program is poised to contribute to the goal of the Third National Development Plan - "To increase average household income and improve the quality of lives of Ugandans"; and the five Key Development Objectives.

6.4.L Implementation Reforms N$d Key implementation reforms required to fully implement the Regional Development Programme and realize expected goals include: i.
Develop and implement regional development programmes in Bukedi, and Karamoja, similar to the approach taken in Rwenzori, and Bunyoro.

\ I i i. l{"\ o, est Nile 24 ii.

Implement value chains that support production and productivity in Agriculture, Tourism, Minerals and Manufacturing which are the main endowments of the sub-regions.

iii.
iii.

Roll-out the Parish Model approach to local economic development with the parish chief taking responsibility of overseeing wealth creation, production, basic value addition and bulking for onward transportation and marketing iv.

Strengthen communication and stakeholder engagement in planning and implementation of government reforms.
v. Transfer the management of the regional prograrnme to the Ministries of Local Government and Gender, Labour and Social Development to enable OPM focus on its primary mandate of coordination.

vi.

Provide for transfer of affirmative action projects, staff and responsibilities from OPM to MoLG vii.

To establish a special fund to finance implementation of prograrnmes under this programme.

Table 6: Summary Regional Development Programme -RDP PIAP Annualized Costs by lead MDA -vrr1l- - ::-- :+ii.
'::-: & 2O2O l2r ll#ii#:iiiilM 2O2L 122 2022123 20.23124 &x;a#ir;;i!&,,* 2024l2s MOLG MAAIF MWE OPM LGFC LGs MFPED MGLSD MEMD MES MLHUD MTIC G--r 614.3 375.7 243.4 13.1 2r.o 615.5 380.3 254.7 13.4 14.3 6TT.2 380.3 254.6 t9.4 7.2 670.9 837.6 942.3 s0.2 2t.4 44.t 2t.4 45.1 2t.4 t27.O 132.3 133.7 to.2 13.7 96.7 to.2 t3.7 96.7 ro.2 13.1 101.3 1 1 i i 625.4 380.3 254.7 13.4 7.2 r42I.5 52.2 2L.4 t40.4 to.2 t3.7 96.7 2,466.5 1,5L6.7 1,007.3 59.3 49.7 3872.2 191.6 85.8 533.4 40.8 54.2 391.3 25 \ qu% MICT&NG MTII/A MUIT NARO NEMA NPA UIA UNBS TOTAL 3.1 29.O 484.6 t.7 23.O 18.0 2.5 29.8 516.5 1.8 151.8 3.8 2.8 29.8 674.8 1.8 151.8 1.8 4.3 29.8 t2.7 118.4 1043.0 27 r8.8 1.8 151.8 1.8 7.r 478.4 25.4 985.3 1,034.3 1,032.3 1,032.3 4,O84.2 4.3 4.3 4.3 4.3 t7.o 4,O59 3,889.O 4,228..O 4,486.O 5,351.O 17,954.0 Source: NDPIII 2O2 I 2L-2O24 I 25 The analysis further indicates that, the annualized summary cost of the Regional Development Programme (PIAP) as shown in table 6 above, over five years of the NDPIII is not aligned to the NDPIII planned expenditure over the period with the annualized cost being set at UGX, 3,889bn for the twenty-member programme working groups as compared to the planned expenditure cost of UGX.5,706bn in the FY 2O2I/22 6.5 IntegratedTransportlnfrastructure Integrated Transport Infrastructure and Services (ITIS) contribute to the NDPIII goal of increased household incomes and quality of life by linking growth opportunities in agriculture, tourism and minerals.
This not only facilitates national and international integration, but also supports job creation, poverty alleviation, and inclusiveness.

The programme strategr in NDP III is to Consolidate & increase stock and quatity of Productive lnfrastructure and this is one of the key objectives.
The expected outcomes of the programme include; improved accessibility to goods and services, reduced cost of transport infrastructure, improved national transport planning, longer service life if transport investments, improved safety of transport services, improved coordination, implementation and delivery of transport infrastructure and services; and increased access to regional and international markets.
W Due to the nature and the role played by transport in development the Ministry of Local Government plays a big role in the implementation of the Integrated Infrastructure programme and the PS/ Ministry of Local Government is Chair of the Programme working group.
kl*Al 6 \ s From extract of the Integrated Transport infrastructure and Services prograrnme as seen from the table 7 below the Ministry of Local Government through the Local Governments have been allocated total of UGX.463.2bn for the maintenance of road networks under Periodic DUCAR networks (UGX.146.52bn), Routine Manual DUCAR networks (81.29bn) and Routine Mechanized DUCAR networks (UGx.23s.4bn).

However, the allocated resources under Local Governments of UGX.
462.98bn is not aligned to the extract from the NBFP under the lead MDA as shown table 7.

6.6 Agro-Industrialization Agro-processing occupies a very important place in the agricultural value chain, creating backward and forward linkages between the farm and the market.
The backward and forward linkages between the agricultural, industrial and service sectors through agro-industrialization will stabilize and increase demand for raw agricultural commodities, increase prices, and stimulate increased production/productivity through increased use of improved inputs, increased agricultural research and reduced postharvest losses.
Agro- Industrialization programme it intends to organized and support farmers to increase their production/productivity, bulk and market agricultural produce and for data-collection.

This being sector that is in the rural areas it involves the role of Local Governments in - directly implementing this prograrnme.
Under the agro- Industrialization prograrnme the Ministry of Local Government and the Local Governments have been allocated a total of UGX.326.86bn of which UGX.126.86 is for Local Government Agriculture and Commercial Services; and UGX.200bn for Agri- LED under the Ministry of local Government.

6.6.1 Parish Model Under Agro-Industrialization prograrnme we have Parish Model.
This model, intends to organized and support farmers to increase their production/productivity, bulk and market agricultural produce and for data-collection.

However, only UGX.

S0Omillion has been planned and budgeted for this activity in the FY 2O2l122.

According to the Electoral Commission data we have 10,595 parishes in country and the under NDPIII, Government intends to Operationalize model in these parishes.

K-t I 1 I I S$..,, \.'


27 "d' The Committee has been informed that UGX.SOOmillion provided or indicated, is for only 4,299 Parishes falling in the Districts/Cities/Municipalities under Regional Development Programme (RDP).

The Committee was further informed that the other funds are catered for under the normal prograrnmes.
In addition, other NDP III programmes such as Public Sector Transformation Programme (Chaired by Ministry of Public Service), Community and Mindset Programme (Chaired by Ministry of Gender, Labor and Social Development) have budget lines for Parish model interventions (like wages Common user community centres which will also serve as Oflices of Parish Chiefs) \ 1.
"s; K*A1 28 t t Table 7: SUMMARY PROGRAMME IMPLEMENTATION ACTION PLAN (PIAPI Annualized Costs by lead MDA UNDER THE COMMITTEE ON PUBLIC SERVICE AND LOCAL GOVERNMENT.

(UGX.

Billionsf s/N PROGRAMME Lead MDA Proposed Proposed Budget FY 20.21122 Budget/Aanualized Cost FY 2o2tl22 1 Integrated Transport s,968.80 LGs 462.98 Infrastructure Services Periodic Maintenance.
DUCAR t46.52 Network More by 0.23 Routine Manual Maintenance 8r.29 DUCAR Routine Mechanized Maintenance 235.4 Agro-lndustrialization Sub- total DUCAR Sub-total t,509.26 MoLG Agri-LED MoLG 463.2 2 a J 4 5 6 Regional Development 1,447.OO Sub- Total L,447.OO Public Sector Transformation 253.48 Sub- Total Community Mobilization and Mindset Change Sub-total Other Programmes that LGs participate.
Human Capital Development Climate Change Total MoLG LGFC LGs MoPs PSC LGs 253.48 35.35 9,2113.35 LGs Education LGs Health LGs Water & Environment LG works &Transport Sub-total Source: Extract from the NBFP 2O2Ll22- 2o24125 & NDPIII "Y L. k*q ts-$/: 'sr- t26.86 200.0 326.86 6t4.3 2t.o 670.9 1,3O6.2 23.78 9.48 33.26 7.64 2,136.94 r,943.52 662.59 2.23 24.47 2,632.81 4,769.75 NEX 29 ).\ ' \,\r F- The analytical results from the table 7 above indicate that Prograrnme Implementation Action Plan (PIAP) annualized costs for the programmes /Sectors under the Committee on Public Service and Local Government are much higher wit}.
:- 4,769.75bn compared to the total proposed budget of UGX.

4,O49.81bn under the sector a-rrangement as seen in table 8 below.

This indicates that a lot of resources are directed to the Local Governments but gets less scrutiny by the Committee on Public Service and Local Government as compared to the other sectors by the Committee and thus there is need for reforms in these area for proper accountability of the resources appropriated by Parliament.

Table 8: Nominal Allocations in UGX.


Billions and Percentage Shares for the Sectors under the Committee on Public Senrice and Local Governments in the FY 2O2L122.

Vote/ Sector Ml Percentage Share as proportion of the Resource Envelop Proposed Budget FY 2O2L I 22 (UGX.45,657.19bnf Vote/ Sector Under LG- Sector Vote 01 1: Ministry of Local Government YoteL4T:.
Local Government Finance Commission Vote 500 501-850 Local Governments Sub-Total LG Sector Other Votes/Sector Vote 005 Ministry of Public Service Vote146: Public Service Commission Sub- Total GRAND TOTAL 276.32 5.32 3,734.91 4,O16.55 23.78 9.48 33.26 4,049.81 Source: NBFP FV 2O2tl22 &, PBO Computations (excl.

AIA & O.610/o O.Olo/o 8.18olo 8.80% 0.05% O.O2o/" o.o7, re?
"P '.\61; 30 \L T,li 7.O OVERVIEW OF SECTORS / MDAS PAST PERFORn{ANCE AND BUDGET ALLOCATION FOR THE FY 2O2OI2L This section of the report looks at the detailed individual MDA's past performance and budget allocations for the FY 2O2L 122 Table 9a: Ovenriew of Vote OOS Budget in the FY 2O2Ll22 and the Medium-Term Projection 2O2Ol2r MTEF Budget Projection 7o shares Appro Spent o/o Proposod',' 20.2212 20231 Budget Budget 3 24 spent by Sept Allocation 2O2tl22 by End sept ved Budge t ucx.
billion) o/o change o/o share of the proposed Budget Recurrent Wage Non- Wage GOU 5.23 t9.77 o.67 L2.81o/o 2.26 LL.43o/o 4.9r 0.30, 6.L5o/o Development Ext.Fin o o Oo/o GoU Total Total Gou+Donor (MTEFI 29.91 29.97 3.23 3.23 LO.79o/o LO.79o/o 5.23 13.64 4.9 0.000 23.74 23.
5.23 13.64 4.91 o s.23 21.99o/o Oo/o 13.64 57.360/o -3L.Oo/o 4.91 20.61o/o 0 Oo/o Oo/o Oo/o 23.79 23.79 23.79 23.79 LOOo/o '2O.49o/" LOO/o 20.49"/" Arrears Grand Total o.t22 o o o o Oo/o Oo/o 29.9t 3.23 LO.79o/o 23.78 23.79 23.79 100% '2O.49"/" Source: NBFP 2O2l122.

* Figures excluding Taxes and Arrears & AIA By the end of quarter one the Ministry of Public Service had spent only UGX.3.23bn representing 10.79 percent of the allocated budget of UGX.
29.9lbn in the FY 2O2Ol2l In the FY 2O2l/22 tl:'e budget of the Ministry of Public Service is expected to reduce by 20.49 percent from UGX.29.91bn to UGX.

23.78bn this is due to 1n non- wage recurrent budget by 31 percent.

k*+l \ \ ii.

\tr.- Nq^ 31 t 7.o VOTE 005: MINISTRY OF PUBLIC SERVICE.

7,L Mandate The Ministry of Public Service is mandated to: Develop, marlage and supervise implementation of human resource policies, mar.agement systems, procedures and structures for Public Service.
7.2 Vision "A Public Service that is affordable, efficient and accountable in steering rapid economic growth and social transformation."

7.3 Mission "To provide human resource policies, management systems and structures for an effective and efficient Public Service that facilitates national development."

7.4 Objectives (i) To enhance performance and accountability in the Public Service.

(ii) To establish and strengthen marlagement structures and systems for effective and efficient service delivery.
(iii)To facilitate attraction and retention of qualified, competent and motivated workforce in the Public Service.

(iv)To improve operational efficiency and effectiveness of the Ministry of Public Service.

7.5 Medium Term Plans i.

Rationalization of Government Agencies to eliminate duplication and mandate overlap for improved efficiency in public resource utilization ii.
Harmonization of salaries in the Public Service to eliminate the prevailing salary disparity and distortions in the public service iii.

Upgrading the performance management framework from output to results based.

iv.

Implementing the integrated service delivery model (Enables access to all services v under one roof).

Institutionalizrng Performance Building in the Public Service.

improvement-based ap to Capacity l+-q s$, 32 \- WW^ vi.

Implementing a mind-set change programme for the public service vii.
Reforming the public service pension scheme from non-contributory to contributory viii.

Roll out of Human Capital Management System to automate all human resource management functions, automate transition from active payroll to pension payroll thereby eliminating delays in payment of pension ix.

Construction of Hostels at the civil service college to improve affordability of training prograrns by local governments x.
Roll out of balance scorecard to enable the Public Service Performance management system measure results/ improvements in the welfare of the citizens in addition to the outputs.

xi.

Develop and implement gender and equity sensitive Sector Service Delivery Standards; 8.O OBSERVATIONSAND RECOMMENDATIONS This Section of the report looks at identified issues and recommendations made to them.
8.1 Implementing Pho"se IV of the approaed pag Policg Government has been implementing the pay enhancement policy in a phased manner since 2OI4 as a mode of administering pay reform and welfare system in the Public Service.

However, only 15 percent of the Public Officers are earning salary as per the approved pay target.

The Ministry therefore, intends to enhance salary for Staff who have never been enhanced since 2OI4 up to 35 percent of the long term Pay Target.
Phase IV of the approved pay policy was scheduled for FY 2O2O/21 and the Ministry of Public Service requires UGX.286bn to achieve this pay policy.

The MoPS had been engaging the MoFPED throughout the budgeting process with a view of obtaining budget allocation for financing pay enhancement.

Despite the above efforts, pay enhancement has remained unfinanced even in the budget allocation for 2O2L122.

The Committee recommends that Goaernment must honor its original commitment to impletnent the enhanced.
Salary sttttctures czs ouer a period of .fiae gears to aaold.

unnecessary disrttption of sernlce The w ,t t N6 33 \W' Committee calls on the Minister of FPED and the Minister of htblic Sertice to priorttize and.

provide for tinanclng the implementation of pha-se lll of the pag enhancement to avoid.

rampant industrial action.


8.2 Operationallzing the hftlic Sector Transformation Programme Secretariat The Committee observes that the Ministry of Public Service is the lead Ministry for the Public Sector Transformation Programme and as such it is required to establish and operationalize aPrograrnme Secretariat effective FY 2O2O121.

However, due to lack of resources, the Ministry has not been able to establish a fully-fledged secretariat.
In the meantime, the Ministry's Planning Unit is performing the functions of the Programme Secretariat which compromises the commitment towards coordination of programme initiatives.

The Ministry budgeted for UGX.2.724bn to fully operationalize for the Public Sector Transformation Programme Secretariat which unfortunately has no allocated budget within the MTEF.

The Committee recommend.s that Gouernment allocates UGX.
2.724bn for the operationo"lization of the Public Sector Transfortnation Programfite Secretariat inthe FY2O21/22.

8.3 Est&lish and operationalize a National Satartes Reuieut Commission It is apparent that there are gross discrepancies in the pay levels across traditional public service MDAs.
This is a serious de-motivator for the staff in the traditional public service institutions in line with their counterparts in the latter established and operationalized authorities and agencies including; KCCA, URA, UNRA, and URF.

The argument advanced for this discrepancy is that selective pay is necessary for certain categories of staff in particular institutions and yet it is critical that the Public Service remuneration structure is administered on the principle of Equal pay for work of Equal Value.
It should be noted that these institutions are interlinked and the efficiency of one of these is dependent on the entire civil service infrastructure.
It should be observed that the delay in the adoption of the rationalization report by Cabinet on entities to merge, abolish in the due to tions w \ i \ 34 w# petitions by affected agencies against the recommendations of the report with the subsequent referral to the Sub-Committee of Cabinet for a hearing before a final decision is reached has not helped matters.
The Committee recomntend.s Jor the fa,st track of these petltions o;nd the subsequent impletnento;tion of the recontmendatlons of the rationalization report, anrnlong which, the establishment of o.

National Satartes Reuieut Commission (IISRC/ uthich utill address the issues of distottions dn pag among all public institutions, persistent salary o;,rears and eaer delaged penslons Jor traditional public setttants resulting from poor planning projection:i, poor record.s and data management and.
incotect Jigures on the number of staff.

The .IVSRC urill reuieut term.s of seruice, salaries and.

urages across the sentice and ensure that the set guidetines are complled uith.

8.4 Establishment of the Public Sentice Pension htnd (PSPF) The quality of life and life expectancy of Ugandans has improved.

As a result, pensioners are living longer than the approved lS-year term current pension payment which has made the non-contributory pension scheme unsustainable.
Because of this reason, the MoPS embarked on reforming the pension scheme from non-contributory to contributory which is expected to start in the FY2O21l2022.

The Ministry officials stated that the PSPF 8i11, 2019 has been finalized, with certificates of Legal, Financial and HR implications issued awaiting approval by Cabinet; The Committee recommends that Cabinet expedites the process o/ regularizing and.

legalizing the fund, haae it gazetted and submitted.
to Parliament for enactmentto laut since this matterls of utmostimportanceto thehhtic Seruants as it secures the qualltg of llfe afier the Civil Sendce.

ftM 8.5 Performance managetnent frameutorks integrated utith Perfortnance Budgeting ?rameuork The Government of Uganda transited from output based budgeting budgeting.

However, the performance management framework is lts based t based.

lr!=-\ ',.1 -tw;.

3s ') .


[\ Therefore, the Ministry is in the process of integrating performarce budgeting with the performance ma-nagement framework to improve accountability for results.

The reform is being implemented in a phased manner due to inadequate resources.

At the current funding level, the Ministry requires over 5 years to cover all votes hence the need for additional funding.
The Ministry requested for UGX.3.7SObn to rollout the Performance management frameworks integrated with Performance Budgeting Framework in MDAs and LGs to improve accountability for results which unfortunately has no allocated budget in the MTEF.

The Committee recomntends that @uernment allocates UGX.3.7iObn toutards rolling out of the Perfonnance Management Frameutorks integrated.

utlth P e rfo nnance Budg eting.


8.6 Customizing Sttttcfi.tres for Neut cities (17) Government approved creation of 15 cities and the Ministry of Public Service has come up with a generic management structure which requires customization based on the specific needs of the different cities.
The Committee however observes that the Ministry budgeted for UGX.2.Obn to cover the cost of this customization, however an allocation of only UGX.100mi11ion has been allocated for this in the MTEF and is grossly inadequate.

The Committee recommends that Gouentment allocates an od.ditional tIGX,7.9bn to cater for the qtstomization of sttttctttres for the neut cities.

8.7 Automation and.
8.7 Automation and.

modernlzation of management systems of goaernment to enhance administratlae processes to more efficient friendlg senld,ce M/ The Government of Uganda still lags in Information and Communication Technologr applications.

The Government under the National Development Plan (NDP II), undertook to automate government processes as enshrined under the e-government initiative.
This has however not been implemented fully because there is still an acute shortage of Information Technologr equipment including; computers, , photocopiers, and ( skilled manpower Ll".itl W I !

i 1:r. 36 \ Public Service delivery remains largely under the grip of cumbersome systems that increase the cost of Public Services which greatly diverges from the MPS for FY 20 L8l 19, where the Government targeted to reduce the cumbersome systems by 2Oo/o and a further 4Oo/o in the subsequent Financial Year.
The failure to achieve this has greatly affected LGs since they lack internet connectivity and reliable networks with some of these officials having to travel to the Center or in some instances Regional offices to input data into the IPPS at the MoPS.

This has created gaps and delays in submission and processing of salary and pension.

The Committee recommends that the Gouerrtment ensures estoblishment of adequate ICT infrastntcture ccross the country to interconnectthe hfilic Serttice operating systems.
Auailahilitg of broadband netutork across the country is a critical component to achieae greater adoption of onllne multimedia and Internet-ba"sed applications for better sentice delfuery and uill reduce red tape, the cost of dolng business in Public Sentice and.

also corntption.

8.8 Vacant and partiallg ftlled.


posltlons in the htbltc Seruice hurl The Public Service in Uganda is characterized by acute under stafling levels in MDAs and LGs which is currently at one hundred fifty-seven thousand (157,000) positions, yet the significance of sufficient labour force to satisfactory perform the set-out task cannot be over emphasized.

As at MoFPED ministerial statement of 2Ol9l2O2O, filling the current staffing gaps in MDAs requires UGX.

1.8tn.
1.8tn.

this figure has to date not been availed by the MoFPED.

This is further affected by the numerous portfolios occupied by staff in acting positions with some of them having occupied these positions for over 5 years.

This number currently stands at over nine hundred sixty one (961) which not only has a financial implication but also derails career growth and development.
This huge staffing gap creates heavy work overload on the few existing staff, limits the ability of the public entities to effectively deliver and achieve also a risk that optimum output is not achieved, which may mandate.

There is quality of service delivery l,Ml \ !

I 1 37 .ut The Commlttee recomrrtends tho:t the Gouernment ensures that these aacant posittons and.

those occupied in acting capacitg are ftlled.

up.


Being mindful of the cost lmplication, the Committee suggests that this be done in a pha,sed manner beginning uith the most critical positions and an allocation for this be included utithin the FY 2021/2022.

8,9 Enhancement and.


improuement of staff productiuitg in the Public Senld.ce In FY 2Ol9l2O, the MoPS reported that it offered technical support to MDAs on implementation of performance management initiatives, supported HR managers in human resource planning and offered technical support on implementation of capacity building and training interventions so as to improve capacity to enable the ministry deliver its mandate.
Despite these efforts, it is worth noting that only L7 189 MDA were given this support; a representation of l9o/o performance due to low funding to the Ministry which presently stands at less ttran lo/o.

The ministry has also delayed to operationalize tl:,e pension fund; develop performance management initiatives such as performance appraisal and performance improvement plans.
It also goes with say that Uganda's human capital is still characterized by very low productivity with public officers notorious for absenteeism and lethargr, and the offices having limited tools due to poor funding which has led to low motivation, poor work culture, poor performance practices and corruption which continue to affect the Public service sector in Uganda.

This has derailed the Country's target of achieving middle income by 2O2O and is envisioned to affect the achievement of Vision 2O4O.
The Committee recommend.s that Goaerttment should enhance efforts to lmprooe the uelfare and competence leuels of the publlc senla;nts bg lunstlng more moneg in thts sector to settle its unfunded prlorittes as set out ln the MPS 2027/22 as well as improuing utork initiatiaes like; tmplementatlon of mandatory tralning courses, enhancement of e-learning and utork capacltles and increased research and innoaation ln producttttttg enhancement.
( ,' \ ry sN% 38 )t 9.O Vote O11: Ministry of Local Government 9.1 Mandate The Ministry of Local government is mandated to guide, harmonize, mentor and advocate for all local governments in support of government's vision to bring about economic transformation for the country.

9.2 Vision "An effective and eflicient Local Government system that provides quality, equitable and sustainable services to the population of Uganda."
9.3 Mission The Local Government Sector Mission is "To co-ordinate and support all local governments in a bid to provide efficient and sustainable services, improve the welfare of all the people and eradicate poverty in Uganda".
9.4 Strategic Objectives for Ministry of Local Government The Ministry's strategic objectives are: (i) To improve the decentralization system so as to promote democratic governance, transparency and accountability in LGs (ii) To improve the functionality of the LGs for effective service delivery.

(iii)To increase local investments and expand local revenue base to facilitate rea\zation of Government poverty reduction initiatives.
(iv) tmprove environmental and ecological management in LGs (v) Improve planned urban development.

(vi)To provide mechanisms for more equitable financing for LGS (vii) To improve coordination and harmonization of policy and planning, budgeting and M&E at national and local governments f-i I Wk-14 39 Table 9b: Overview of Vote O11 Budget in the FY 2O2Ll22 and the Medium-Term Projection 2O2Ol2r MTEF Budget Projection o/o shares Approve Spent o/o Proposed 2O2Ll2 202212 d Budget by UGX.
billion) End Sept Budget Spent by Budget Allocatio n Sept. 2O2Ll22 2 3 o/o change o/o share of the proposed Budget 9.615 13.3 1.931 20.O8o/o 1.69 t2.7 to/o 9.62 9.62 9.62 9.62 9.62 9.62 3.48o/o Oo/o 3.48o/o -27.6?0/o to2.463 o.687 O.66Vo 61.06 61.06 61.06 22.O9"/o -4O.4Lo/" Recurrent Wage Non- Wage GOU Developme nt Ext.Fi 246.Ot9 n GoU r25.378 Total Total Gou+Donor (MTEF) 37 r.397 196.O2 196.O2 7O.94o/o -2O.32o/" 4.308 4.308 3.44o/o p0.eo l.160/" 276.32 80.30 t22.49 80.30 80.30 29.060/o -35.95% LOOo/o -25,60/o Grand 37L.397 4.308 L.160/o 276.32 t22.49 80.30 100% -25,60v" Total Source: NBFP 2O2L 122.
* Figures excluding Taxes and Arrears & AIA In the period under review the Ministry of Local Governments' past expenditure performance stood at UGX.4.3O8bn representing 1.16 percent of the allocated budget of UGX.371.397bn in the FY 2O2Ol21 and; In FY 2O2ll22 The overall budget of the Ministry of Local Government is expected to reduce by 25.6 percent from UGX.37I.397bn to UGX.276.32bn this is as a result of reduction in GOU allocation by 40 percent, and External financing by 20.32 percent respectively.

.
.

.

i tj q$,$i (- e*\ Nry{ 40 !

\" 9.5 Medium Term Plans 1.

Operationalization of all New Sub counties and Town councils ensuring that the ones gazetted first are given first priority.

2.

Operationalization of all the new Cities.

3.

Roll out of the Parish model and its structures throughout the entire Country.

4.

Implement the LED strate5/ ensuring that all Local Governments benefit 5.

Develop and ro11 out the Digital system for Data collection, reporting and Monitoring across the Country.

6.
6.

Induction of newly elected Local Government Leaders ensuring that both Women, Men, youth and People with disabilities participate 7.

Build Capacity of LG Technical staff prioritizing the newly created Local Governments 8.

Coordination of the Implementation of the Regional Development Programme to ensure that eight priority regions poverty numbers reduce to an average of 32.4 percent.

9. Review the LG Act to provide for the new Cities and any other new developments aimed at benefiting all Ugandans.
10. Review the LC Courts Act to rationalize the cost of administration ofjustice to men, women, older persons, the disabled and other marginalized persons arnong others.

11.

Develop and implement the Domestic Revenue Mobilization strategy for all Local Governments to enhance their Local revenue contribution to budget financing.

12.

Advocate for increment in stafling levels in the LGs ensuring that the ones at 52 percent are given priority to at least reach 75 percent.
13. Review of the LG regulatory framework in line with the PFM Act 2015 to help improve service delivery to all citizens; 14.

Construction of MoLG Headquarter Offices 1O.O OBSERVATIONS AND RECOMMENDATIONS NV 1O,1 Fvnding of Neut Toun Counclls and Sub Counties Newly created administrative units, including sub-counties and town councils have remained non-functional due to lack of funds for their opera {his state hinders s LL-q 4L ,I l- .

'r.

.\ meaningful service delivery.


Currently 377 Sub-Counties and 355 Town Councils have not been fully operationalized and Government to-date has not provided the required funds to operationalize them as the MTEF allocation for the FY 2O2l l22has not catered required funding for the new Sub- counties which presently stands at UGX.

41.513bn and UGX.

94.394bn for the Town Councils.


It is also worth noting that some of these newly created administrative units have been frustrated by their mother administrative units that have not planned for them in their budgets thus sidelining them in development matters.

The Committee also observed that some of the administrative units for example town councils had received startup funds but these funds are reported to have been misused since there are no accounting officers in place.
It should further be observed that most of these administrative units have elected political leaders who will not have their technical counterparts.

The Committee recomtrtends that i. Goaentment prouides the UGX.

135,9o7bn toutards funding of the Toutn coancils and Sub counties.

ii.

Goaentment enhances supentision tn the neulg created Toutn councils and Sub counties to ensure that the funds receiaed bg these administratiae units are spent for the purpose planned for.
MA 1O.2 Critical staffing posts in Local Gouernments To date, a number of critical positions in most local governments are still vacant with marly still grappling with huge staffing and capacity gaps as severally reported by the Auditor General.

These positions include heads of department like the; heads of procurement unit, internal auditors, sub-county chiefs, town clerks for town councils and parish chiefs.
Tlae 2O2OI2I MoFPED ministerial policy statement indicated that it required UGX 7.942bn to finance the unfilled HoDs, UGX.17.62bn for sub-county chiefs/TCs, and t staff yet they UGX 26.69bn for parish chiefs.

To date, some LGs have failed to $ @ 42 It have wage bill provisions.

Districts affected include; Nabilatuk, Kapelebyong, Kwania, Mbale and Oyam.

The number of positions in the LGs occupied by staff in acting capacity is equally appalling.
This has a financial implication since allowances have to be paid out to these staff for acting in these positions, but also affecting productivity and stretching the thin human resource.

The Committee recommends that i. Goaernment prouides UGX.52.25bn for the recntitment of these critical positions in the Local Goaernments.

ii.
ii.

The Ministry of h.tblic Sentice, the htblic Sentice Commission and the Distrlct Sentice Commissions ensure that the positions being occupied by staff in actlng capacitg be substantitrclg ftlled as this ts enuistoned to proaide job securitg and thus increase motiaation and staff productiuitg.

10.3 Domestic Arrears M The Committee observed that the Ministry of Local Government had accumulated a huge bill arising from the payment of domestic arrears which are aggregated at UGX.45.15Obn.
These are mainly arrears on VAT, counterpart for projects and outstanding palxment for contractors.

The Committee notes that the continued accumulation of domestic arrears is contrary to the existing commitment control system and the provisions of the PFMA 2Ol5 (amended).

This accumulation of a-rrears also portrays Government as a bad service consumer The Comrnlttee recomtnends that the Ministry of Local Goaernment desists from acqtmulation of o;rreo;rs going forutard.
and prioritize settlement of all aeriJied anrears to a tune of UGX,45.75Obn outed to the priaate sector cr,s a means of promoting priuate sector grouth, 1O.5 Acqulsition of Vehicles and motorcgcles to the louer letnl leaders The Committee observes that whereas the Ministry of Local budgeted to avail means of transportation to the political has previously at the; parish, sub $s:' q 43 ),I L, county, municipality and district levels, this has not been realized to date.
The Committee notes that presently there is a need to avail; motorcycles to parish chiefs at UGX.3,108bn, Motorcycles for sub- county chiefs at UGX.16,800bn,31 vehicles for municipal mayors at UGX.5,580bn, and 7 Vehicles for District Chairpersons at UGX.

1,600bn.

The Committee notes that availability of transport to these political leaders will facilitate supervision and monitoring of service delivery in these administrative units and directly relates to productivity.
The Committee recommends that the @aentment aao;ils UGX.27.7OObI to facllitate the procrtretnent of transport carriers for these polltical leaders at the different administratiae unlts tt ttlr.

ln the Local Gouerttrnents.

10.6 Consttttction of Local Goaernment offi.ce Btocks (15O ?Cs and SCs) The Committee observed that most of the newly created TCs and SCs are faced with a challenge of office space to accommodate their staff.
At the time of separation from the mother units, most of these recently created units do not receive these facilities and as such some are forced to resort to the use of dilapidated Government buildings while in other instances forced to rent office space which is quite costly and affects budgeting and service delivery.

The Ministry of Local Government quoted UGX.3O.OObn to construct office blocks for these TCs and SCs.
The Committee recommends that the Goaernment aao;lls UGX.SO.OObn for the constntction of office blocks for the neulg created ?Cs and SCs.

?his ds enuisioned to itnproae productivitg of staff as uell as lncrea"slng aalue for moneg.

1O.7 Parish Model Operationalization The Committee observed that one of the greatest challenges the Local Governments face in service delivery is the capabilities and competencies to implement these projects.
The Ministry of Local Government developed the parish model which is envisioned to strengthen capacity for development planning, facilitate training and l .1 c*, ,(S*- I kt-\ 44 t t retraining in planning competencies, and strengthen human resource planning to inform skills projections from the Parish level to the district levels as well as MDAs.
The Ministry has budgeted for funds to; improve capacity for integrated development planning in LGs; PDCs training in participatory planning and Monitoring of projects; Parish frontline extension staff training and equipping in data collection and reporting; Development and rolling out data tools for community information system; and Coordination and harmonization of implementation of the parish model which activities are budgeted at UGX.3O.09Obn.
These funds have unfortunately not been allocated in the FY MTEF.

The Committee recommends that the Gouernment aaails UGX.

?O.O9Obn for the parish Model operationalization in the FY2O21/22.
1O,8 Operationalization of citles The Committee notes that the newly created cities do not have a legal provision for their operations and existence and are currently being run under the Local Government Act, the Committee therefore urges the Minister of Local Government to work towards bringing an amendment to cater for these cities.

Secondly, ten (10) of the approved Fifteen (15) cities commenced operations on the l"t July, 2O2O.
These include; Mbarara, Fort portal, Masaka, Jinja, Mbale, Soroti, Lira, Gulu, Arua and Hoima.

These cities have to date not achieved full operational potential due to financial constraints and are running on the budget allocation initially appropriated for the Municipalities.
The Ministry of Local Government indicated a dire need for additional funding to these cities, in the areas of; UGX.66.132bn to cater for non-wage and development components; UGX.lO.OObn for renovation of new city offices; UGX.lO.OObn for startup funds; UGX.I4.671 as additional funding for the cities; UGX.2.00bn for vehicles for city mayors; and UGX.2O.O0bn for construction of offices of districts whose offices were taken over by cities.
The Committee recommend.s that @aernment; (i) (ii) brings amendment on the existing lauts being used under the local gouernntent act to cater for the neulg created.

cities.

allocates a. sltm of UGX.122.8O3bn for the functionalizatlon of the ten (7O) recentlg operationalized.

cittes in the MTDF rr2o21/22.


,.. v \ 1 1 1 st ll**p $riMA 1O.9 Induction of Counctlors in 777 Districts/MCs/Cities The Committee observes that one of the greatest detriments to service delivery and productivity in the Local Governments has been the failure by the political leaders in performing their duties especially supervision of staff and monitoring of Government programmes and projects at these lower LGs.
The Ministry of Local Government has presented a cure to this in the form of sufficient induction of these LG leaders at the Districts, Municipalities and Cities, budgeting for UGX.lS,OObn to cater for this exercise.

This has however not been given an allocation in the MTEF for the FY2O2|122.

The Committee recommends that fuaernment allocates UGX.IS.OObn to the Minlstry of Local Goaer"nment to cater for the inductlon of Councitors in 777 Districts / Municip alitie s /Cltie s. 11.O.
Vote 146: Rrblic Senrice Commission 11.1 Mandate The PSC derives its mandate from sections 195 and 196 of the Constitution, The PSC is tasked and empowered to, amongst others, investigate, monitor, and evaluate the organization and administration of the Public Service.

This mandate also entails the evaluation of achievements, or lack thereof of Government programmes.
LL.2 Vote Mission Statement To provide Government with competent human resources, for effective and efficient Public Service delivery 11.3 Strategic Objective A competent, motivated and highly performing Public Service for effective service delivery The PSC also has an obligation to promote measures that would ensure effective and efficient performance within the Public Service and to promote values and principles of public administration as set out in the Constitution, throughout the Public Service.
These values and principles are (i) A high standard of professional ethics t{*/ M t}ffi: 46 t (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Efficient, economic and effective use of resources A development-orientated public administration Provision of services in an impartial, fair and equitable way, without bias Responding to people's needs and encouraging the public to participate in policy- making Accountable Public Administration Fostering transparency The cultivation of good human resource management and career-development practices A representative public administration with employment and personnel marlagement practices based on ability, objectivity, fairness and the need to redress the imbalances of the past.
Table 9c: Overview of Vote 146 Public Senrice Commission Budget for the FY 2o2ll22 and the Medium-Term Projection o/o Proposed 2022123 202312 2O2Ol2L Approve d Budget UGX.
billion) Spen tby End sept Budget Spent by Sept 3.27 1.00 30.s8% 19.44o/o t.t7 Budget Allocatio n 2O2L122 3.27 6,02 0 Oo/o 0.18 MTEF Budget Projection 7o shares 4 Yo change o/o share of the proposed Budget 3.27 6.O2 0.18 3.27 6.O2 0.18 34.49o/o 63.50% Oo/o Oo/o 1,89"/o Oo/o Recurrent Developmen t Wage Non- Wage GOU Ext.Fi n GoU Total Total Gou+Donor (MTErl 6.O2 0.18 9.48 9.48 2.t7 2.t7 22.89yo 22.89o/o 9.48 9 .48 9.48 9.44 9.48 9.48 100% LOOo/o Oo/o Oo/o Grand Total 2.t7 9.48 Source: NBFP 2O2I /22.
* Figures excluding Taxes and Arrears 22.89o/o 9.48 9.4a l{.

* '-.

a ' : "WEl't" 9.48 / lOOo/o Oo/o WJltkK 47 ,[.

,1 At the end of quarter one the Public Service Commission had spent only UGX.2.l7bn representing22.Sg percent of the allocated budget of UGX.

9.48bn in the FY 2O2Ol2l and; In the FY 2O2I/22 t}:.e overall budget of Public Service Commission is expected to remain the same as was in the FY 2019l20 at ugx.9.48 bn.
11.4 PLANNED OUTPUTS FOR F"r 2o2tl22 a) Review Constitution, Public Service Act, Public Service Commission Act, Public Service Commission Regulations, Guidelines and Checklists and submissions to PSC.

b) Review Performance Assessment tool for Permanent Secretaries and other officers across government.

c) Handle complete submissions on disciplinary cases.

d) Review salaries across government.


e) Restructure Public Service Commission to incorporate all its mandated functions as enshrined in the Constitution of the Republic of Uganda.

0 Fill declared vacancies at the Central Government and Chief Executive positions in Local Governments (CAOs, DCAOs, Town Clerks of Cities and municipalities) g) Conduct graduate recruitment exercises.

h) Review the Local Government Act on establishment of service commissions for local governments.
i) Fully operationalize e-recruitment system across government.

j) Enforce implementation of Performance k) Management Systems l) Capacity building of DSC members and secretariat staff.
m) Review of PSC interview assessment/methods tools n) Review the performarrce standards and minimum conditions for DSCs o) Monitor and assess performance of DSC members p) Issue guidelines to DSCs q) Mentor Secretaries of DSCs r) Conduct Performance Audits of DSCs l+-q Nke \u$n- 48 t1_ \t s) Handle appeals arising out of the decisions of the DSCs.
T2.O OBSERVATIONS AND RECOMMENDATIONS 12.1 Recntittnents into the Publtc Sentice It should be noted that the recruitments by the PSC was below the earlier recruitment projections.

This is attributed to the reduced submissions from the MDAs, due to limitations in the wage bill and the general freeze on new recruitments.
The Committee also makes a number of observations related to recruitment which include; a number of staff in the public service are in acting capacity, delays in clearance of the recruitment processes by the MoPS, some staff are appointed on contract basis, all of which have continued to undermine the effective delivery of services in the public service.

The Committee recommends that; t. 11.

The Goaernment should.


conslder increasing the utage blll and ln effect cancelthefreeze on neu, recrttitments as this utillincrease sentice deliaery.

?he PSC should engage the MoPS to ensure that all the positions held in acting capacitg or on contractual basis are substantiallg and pertnanentlg Jilled, uthich will promote Job securitg and result into lncreased productiaitg.
12.2 @ttiding and coordlnation of Dtstrict Sentice Commdssions The Committee observed issues affecting the performance of the DSCs including; human resource challenges, facilitation and equipment which have led to weak policies and incompetencies in the DSCs, including; inadequate office space; establishment structures are rigid and uncoordinated; unfilled vacancies due to inadequate wage; lack of official transport; political influence/ interference; failure to attract competent critical staff in LGs; poor facilitation of DSC members; lack of functional DSC registries; contradictory guidance by MDAs to districts; DSCs failing to meet the costs for aptitude tests; irregular appointments; unethica-I conduct by members of the DSCs; conflicts arnong the district organs; inadequate office materials for use DSCs; and poor performance management system.
K*tll \ 1 I \+,& 49 NK The Committee recommends th;a:t the Local Goaernment Act and Article 798 of the Constitrttion, the @aernlng policies in the rectttitment and management of the DSCs be amended to lnclude the follouing; i.

The PSC should consider centralizing and.

managing the recntitm.ent process of the DSCs.

This, the Committee enudsions uill address the challenges presentlg faced.
uhere rectttitment into the DSCs ls conducted bg the district leaderships and is based on political logaltg resulting in to manipulation of the recntited memhers.

ii.

The PSC should enable conststent and streamlined supentision of the DSCs in conducting their mandates to ensure th.oJ theg operate aborre manipulation and threats from the political leaders and comprontise and thus complging uith the ntles.

itt.PSC should.
itt.PSC should.

pursue the issue of streamlining and standardizlng pagment of retainer fees and other alloutances uith the MoLG, MoFPED, and MoPS so as to ensure that the emoluments and other Jinancial benetits of the members of the DSCs utith ftxed amounts are set across the board and centrallg managed, under the superuiston o.,i[ the MoFPED, ia.

The PSC shoutd consistentlg proulde continuous refresher trainings to members of the DSCs.

a.
a.

The PSC should engage the MoLG to preuail oaer the CAOs to prouide peftnanent and adequate ofJice space and.

equipment to the DSCs.

ui.

The PSC should qdaocate for increment ln the urage blll bg engaging the MoFPED and MoPS so cs to Jill existing aacancies in the LG Structures up to 65% operational leuel.

Theg should fanther engage the MoPS and MoLG to revieut the LG sttttctures to ta,ke care of the existing gaps.

uit.
uit.

The PSC should urgentlg engage the MoLG, MoPS, MoJCA, a.s uell as the other sentice commisstons including; the ESC and.

HSC on the streamlining of the currentlg conflicting guidelines and lrregular appointments in the Local Gouernments.

13.O Vote L47z Local Government Finance Commission !

lrt-t!
lrt-t!

., .\ #-' q{:' 13.1 Mandate The Local Government Finance Commission is mandated under the Constitution of Uganda (1995) and the Local Government Finance Commission Act (2003) to advise the President on all matters regarding transfer of resources from the central government to local governments (and allocation to each local government) and to advise local governments on matters relating to revenue from sources devolved to them (local governments).
L3.2 Vote Mission Statement To offer credible and evidence based advice to government on linancing of all Local Governments.

13.3 Strategic Objective To promote adequate Iinancial resources for service delivery by Local Governments Table 9d: Overview of Vote L47 Local Government Finance Commission Budget for the FY 2O2Ll22 and the Medium-Term Projection 2O2Ol2t Spent by End Sept MTEF Budget Projection 7o shares Approve d Budget UGX.
billionl r.62 3.55 o/o Proposed 2022123 2023124 Budget Spent by Sept Budget Allocatioa 2O2tl22 o.40 0.93 24.7Oo/o 26.19o/n 1.62 3.54 r.62 3.s5 3.42 6.85 o/o share of the proposed Budget 3O.45olo 66.54Yo o/o change Oo/o OY" o.16 0.014 8.750/, 0.16 o.66 1.56 3.O1o/o Oo/o Wage Non- Wage GOU Ext.Fin Recurrent Developmen t GoU Total 5.33 1.35 25.330h Total (MTEF) Gou+Donor s.33 1.3s 25.33o/o 5.32 5.32 Grand Total s.33 1.35 25.33Yo 5.32 5.83 s.83 s.83 11.84 100% 11.84 100% OYo Oo/o 11.84 lOOo/o Oo/" Source: NBFP 2O2l122.
* Figures excluding Taxes and Arrears & AIA By the end of quarter one the Local Government Finance Commission had spent w)vt UGX.1.35bn representing 25.33 percent of the allocated FY 2O2Ol21 and; UGX.5.33bn in the \ k1*,t1 51 1., t $' In the FY 2O2l /22 the budget of Local Government Finance Commission is expected to remain the same as was in the FY 2O2Ol21 with budget of UGX.S.32bn.
13.4 Planned Outputs for FY 2O2Ll22 1 Advise the President on all matters concerning the distribution between government and LGs and the allocation to each LG of monies out of Consolidated fund.

11 Recommend to the President through the Minister, the percentage of the national 111 1V.

v. budget to be transferred to Local Governments every financial year.
In consultation with the National Planning Authority consider and recommend to the President the amount to be allocated as equalization and conditional grant and their allocation to each local government.

Support LGs improve their local revenue performance Identify and recommend measures for realization of revenues from natural resources vi.

Consider and recommend to the president potential sources of revenue for Local Governments vii.
Analyze the annual budgets of Local Governments to establish compliance with the legal requirements and notify the councils concerned and the President through the Minister for appropriate action v111.

Perform any other functions as prescribed by the law 13.5 Medium Term Plans The major focus of the Commission in the medium term include i. ii.

Improve service delivery, efficiency and value for money through LGFC and LG capacity.
Increase local revenues (LR) through continued support to all local governments by rolling out computerization of revenue register (establishing LR databases) in all LGs across the country and other measures.

iii.

Contribute to increase and equity of all Local Government funding from the national budget and Evaluate LG funding on Climate Change.

li t w $$M w4 52 rrr{' lV.

v. vi.

vii.

viii.


Improve revenues from Natural resources from the various regions and streamline to inform planning and budgeting in Local governments.

Regularly Assess Allocation formula & models in light of sector policies reviewed to observe equity and in-build crosscutting issues-poverty, HIV/AIDS, climate change, gender and environment.
Widen Partnerships with other stakeholders to promote and advocate for equity, transparency and fairness in the resource allocations for local governments.

Research on the alternative Iinancing using Public Private Partnerships Establish a framework for collection of data to facilitate the realization for revenue from natural resources.
T4.O OBSERVATIONS AND RECOMMENDATIONS 14.1 LGs Fino;ncing and the Equalization Grant It should be noted that the Discretionary Development Equalization Grant (DDEG) which is a result of the merging of the Equalization Grant, Local Government Management and Service Delivery (LGMSD), Peace Recovery Development Plan (PRDP), Uganda Support to Municipal Infrastructure Development (USMID) and Luwero- Rwenzori Development Programme (LRDP) has failed to observe the objectives of the Equalisation grant of taking care of those LGs whose services are lagging behind at national average standard, as stated in Article 193 (4) of the Constitution.
The LGFC indicated in its FY2OI9|2O past vote performance under the program outcome indicators, the ratio between the highly funded and the least funded LGs which stood at l:23 implying that the highly funded local government for FY 2Ol9-2O was 23 times funded more than the least funded local government.

It is therefore evident that in the allocation of DDEG, the identification of beneficiaries lagging behind is carried out, however allocation to them of the funds is not addressed.
It is therefore clear that in the contents of DDEG, there is no window that provide for equalization grant as envisaged in Article 193 (4) of the Constitution of the Republic of Uganda to date.

The Committee thereJore recommends a re-instatement of the under the follouting frameutork; $}B I 1 i.r w-tq Gra;nt ( 53 )r, ttli i. ii.

Introduce the Equalisation Grant windout utith a grant budget prouision of a mlnlmum UGX.TObn to ad.dress the Constitutional objectiaes envisaged under Attlcle 193 (4).
.Focus the @ant on sectors that haae clear frameutorks for assessingt performance of all ttral and urban .LGs to identifg those lagging behind the No;tional Auerage Sertlce Delfuery per a;nnum or regular periods.

dii.
dii.

The grant should coaer both recurrent and deaelopmcnt expenditttre area:, to address gaps in sentice delioery for respectioe LGs as identiJied in sector p erfo rmonce (uisess me nt s. 14.2 Funding l*aels to Local Goaernments The Committee observed that funds retained within the MDAs, which if were directly channeled to LGs, would increase the LGs Budget greatly.

These funds are spent at the central government level through direct implementation of programmes and projects by MDA(s).
A report by the LGFC indicated that over 2.264tn are retained at the center for implementation of decentraJized services in the MAAIF, MoH, MoWE, MoWT, MoTTI, MoGLSD and the URF with no exhaustive consultation done with the LGs as planning is guided by Indicative Planning Figures (lPFs) received from the MoFPED based on the previous financial year allocation which may not cater for individual LG needs.

These include a variety of, non-wage recurrent, development, and in particular, donor funded activities.
It was also learnt that most of these projects were implemented at higher costs compared to costs quoted by the LGs for similar projects.

It was further observed that the projects implemented by the centre face challenges of supervision, owrlership and maintenance for example some of the roads opened under CAIIP have been abandoned and unmaintained by either parties.
The Committee recommends that; i. LGFC comprehensiaelg identifi.es these fza,nds in the nert fl['s budget such that theg are directlg channeled.

to LGs.

(.

ry til-Y .

'.,\w 54 rrL /, tt.

For efficiencg and.

elfectiueness in implementing @aentment programs and attainment of aalue for moneg and equitg, identiJied funds should.

be directlg channeled through local gouernment Votes for FY 2021/2022 onutard.
This utill also ensrtre ownership of the projects uthere bg the LGs can be able to mo;into;in them uhich ensures sustainabilitg of the proJects, 15.O Vote 5OO 5O1-85O Local Governments 15.1 Mandate Local Government is responsible for constitutional mandates related to promoting the developmental agenda.

Section 152 of the Constitution states that local government must aim to meet 5 mandates that improve democratic developmental outcomes.
These mandates aim to; (i) (ii) (iii) (iv) (v) Provide democratic and accountable government for local communities promote sustainable service delivery, Promote economic and social development promote safe and healthy environments and Encourage the involvement of communities and community-based organization in local government affairs.

In order to fulfil this mandate cluster, local government requires information to identify and plan the delivery of its mandates.

i WA w .r,- ,'''.
i WA w .r,- ,'''.

t'' U*t1 55 '-t Table 9e: Ovenriew of Vote 5OO 5O1-85O Budget in the FY 2O2Ll22 and the Medium-Term Projection 2O2Ol2L Spent by End sept Approve d Budget UGX.

billion) t,420.5 334.62 r88.42 Recurrent Wage Non- Wage GOU Development Ext.Fin 0.o0 GoU Total 1,755.

1 Total (MTEFI Gou+Donor 1,755.


1 Grand Total 1,755.1 MTEF Budget Projection 7o shares o/o Propose 2022123 2023124 Budget Spent by Sept d Budget Allocatio n 2O2tl22 2,236.2 953.72 54s.02 3,734.9 3,734.9 3,734.9 share Yo of proposed the o/o change Budget 59.87o/o 57.42o/o 25.54o/o 185.O% L4.59Yo 189.26Yo 100% lOOo/o Lt2.8OYo LL2.8OYo lOOo/o tt2.800h Source: NBFP 202 1 /22.
* Frgures excluding Taxes and Arrears & AIA By the end of quarter one the was no available information on the expenditures of the Local Governments and; In the FY 2O2I/22the proposed budget for the Local Governments vote 500-850 has increased by 112.8 percent from UGX.

1,755bn in the previous year to UGX.3,734.9bn in FY 2O2t 122.

The expenditure levels for the Local Governments for the available due to the nature and structure of reporting on the review are not e.specially in quarter one.
\ $$$,u* .i sw &4 L k 56 16.0 OBSERVATIONS AND RECOMMENDATION 16.1 Limited.

consideration and.

Scttfilng of Vote 5OO: 5Ol - 85O bg Parllo;m'ent Over the years, the Committee has not got the opportunity to scrutinize t!l,e budget of Vote 500: 501- 850 as is the case with other votes and this has led to a number of complaints including the misuse of Public funds in some Local Governments.
The current structure only allows Ministry of Local Government to present an overview of all the Local Governments without the details that could help in the scrutiny of the individual votes.
The only time for interactions with the LGs in the budget process is during the regional consultative meetings which is done by the Executive arm of Government through the MoFPED while Parliament only engages these LGs through PAC- LG and this is when Parliament is acting on the AGs reports which in essence is too late to cure the problems that could have arisen in the past financial years.
The Committee recommends that; (i) the stnr.cture of reporAing on the bud.get perfortnance of all the Local Governments (aotes 5O1-85O) be reuieuted to accommodate Parliament's abilitg to lnteract utiththese LGs directlg durlng the scnfilng of the M.EP and.

the Budget.

(ii) Suggests that room be created.

for the Comtnittee on hftlic Sentice and.


Local Goaentment to interact utith these local gooernments at the regional leoel just afier the regional bud.get consultatiue meetings hanre been held and before the National Budget ?rameutork Paper is presented to e'rs' Pclrliament to help identifg the needs of the local @vernments.

tW -t 16.2 Perpetual decline of Natlonal Budget allocated.
to Loco'l @twnmcnts: The Committee noted that despite an increase in the percentage share of the Local Government grants transfer from the National Budget frorn 12 percent in FY 2OI7lL8 to 14.8 percent in FY 2OL8119, the budget is dominated wages constituting 60.

14 percent.

Only 36.2 percent is left for service delivery.


36.26 percent is under \\{y W-"t 57 ,iL' unconditional grant which is basically for Administrative expenses and despite the fact that the population and number of local Governments have increased steadily.

Besides, LGs are deemed the engines of service delivery, thus a mismatch that needs urgent Parliamentary attention.

The committee recommends that: i) ii) The future increases should foctts more on seruice deliaery and.
also address the issue of achieaing the increa.sed.

budget allocation of at least 25% of the national budget to LGs sentice delivery.

Parliatnent enacts a legal provision to establdsh a minimum share of National Budget to be allocated to the Local Goaentments tn order to shield.

the Local @aernments' share from deductions.


iii) The Minlstry of Local @uentment should propose an amendment to the Local Gouernment Act, Cap 243 to establish a minimum share of national budget that must be allocated to Local Gorrcntments.

16.3 Reuieut and amend the reutard and pagment sgstem at Local Goaernment The current emoluments payment system at the Local Governments does not sufficiently engender service delivery.
The district and sub-county chairpersons a-re given a salary while the councilors are paid an allowance as and when they sit.

The same applies to the DSCs where the Chairperson is paid a monthly salary while the members are not.

Other bodies such as District Land Board and the District Public Accounts committee are paid an allowance as and when they sit, with meager retainers where provided.
This affects parish and village levels as well where parish and village chairpersons are given an allowance while the committee members are not, rendering most of these entities dysfunctional and ineffective.

These disparities continue to breed discontent and fuel corruption tendencies, negatively impacting on service delivery.
The Committee recommend.s that Goaernment reuieuts the current emolumcnts auarded to these Local @aernment leaders and balance this across the board u.tith eoery public seraant autarded an entitlement including those lios that presentlg earn onlg an alloutance to increase motiuation among officials \$F (UMz{.

I !

'"/ .

'.'

@ 58 L#' a and.

rrlso deal rluith the breeding of corntption bg these local goaernfircnt officials.
Hartnonized pag system for all political and administratloe leaders at the LGs utill motiaate these leaders to perfonn effectiwlg in their functions 16,4 Challenges in Budget Bxeattion at the local gouernm.ents The following are some of the issues reported as matters to note in budget execution; a) Delays in clearance from MoPS and Solicitor General in the procurement process thereby affecting budget performance especially development budget.
b) The insuflicient and late releases of funds with some activities not concluded at the end of the financial y€ff, with these funds reverting to the consolidated account.

c) During the implementation of activities, workshops are delayed in facilitating the participants using E-cash pa5ment, where some participants are paid after a month.

This inconvenience has been noticed with all the E-Cash payment for the LG activities.
d) There is a reduction in budget for LGs which reduction has affected the Non-wage and Development Items The Committee recommends tha:t; i.

Ministry of htblic Sentice and.

the Soltcdtor @nero,l should ensure timelg approaal of the procurement processes and contracts to ensure tlmelg execrtion of projects.

ii.

Budget for LGs be reinstated.

to at least fY 2018/19 funding leuels to couer tii.

some of the unfunded priorltles.

Instead of D-cash pagments, cash should.


be prouided to the participants so as to aaoid inconaeniences uhere mem.hers mag fail to attend.

due to lack of facilttation or fallure to meet transport costs back to their destinations.

\ t. .l i ';' tll rgfo:'"' 59 {r CONCLUSION Rt.

Hon Speaker and Hon.


Members, the Committee recommends that Parliament adopts this report and approves the budgetary estimate for the Local Government Sector and the Public Service that comprise of; Ministry of Local Government, Local Government Finance Commission, Local Governments, the Ministry of Public Service and the Public Service Commission Rt.Hon.

Speaker, I beg to move I \$'!N l'lrrtti 60 t II Lt--t,' \" COMMITTEE ON PUBLIC SERVICE & LOCAL GOVERNMENT NAME CONSTITUENCY SIGNATURE N o W ( I !
{#M'" i 1 Hon.

Onzima Godfrey Aringa North (Chairpersonf County 2 Hon.

Karungi Elizabeth DWR Kanungu (Vice Chairperson) 3 Hon.

Muyanja Mukono South - Ssenyonga Johnson 4 Hon.

Byibesho Sam Kisoro Municipality 5 Hon.

Chelimo Reuben Kongasis County Paul 6 7 8 9 Hon.

Gafabusa Richard Bwamba County Muhumuza Hon.

Amero Susan DWR Amuria Hon.

Awor Betty Engola DWR Apac Hon.

Taaka Agnes Wejuli DWR Bugiri 10 Hon.

Kaliisa Jovrine DWR lbanda 11 Hon.

Akello Slyvia DWR Otuke t2 Hon.


Ssemuli Anthony Mubende Municipality 13 Hon.

Peter Okot Tochi County t4 Hon Oyet Simon Nwoya County 15 Hon.

Bamukwatsa Betty Rukungiri District Muzanira 15 Hon.

Zaitlun Driwaru Yumbe District :ttLt4 i1,", h*-l