Barely a month to the end of the FY 2017/18, Parliament reports have named the best, worst performing ministries in terms of funds absorption of their budgetary allocations.
Various reports for different parliamentary committees on ministerial policy statements for FY 2018/19, several sectors and Votes failed to absorb 50% of the approved budget for the FY 2017/18.
According to a report from the committee of Public Service and Local Government, the ministry of Local Government has been named as the worst ministry in terms of funds absorption, having spent only 6.3% of its 2017/18 FY budget allocation as of December 2017.
“This gross underperformance was mainly attributed to the external donor financing where Shs235.974 billion was approved but only Shs1.614billion had been spent by the end of December 20l7. This was as a result of delays in signing of contracts but this had been solved,” the committee noted.
Under section 95-99 of local governments’ act, the Ministry of Local Government’s key function is to guide, coordinate and support local governments to efficiently and sustainably deliver decentralized services to the people.
The same committee also noted that among other votes in the sector that had a poor funds absorption include; Ministry of Public Service, Public Service Commission and Local Government Finance Commission. Public Service spent 30% of its budget, while Public Service Commission spent 45% and Local Government Finance Commission spent 44%.
Agriculture
A report from the committee on Agriculture, Animal Industry and Fisheries indicated that the overall performance of the agricultural sector for FY 2017/18 stood at 86.5%. The sector covers other votes that include; Dairy Development Authority (DDA), National Animal Genetic Resource Centre & Data Bank (NAGRC&DB), National Agricultural Research Organization (NARO), National Agricultural Advisory Services (NAADS), Uganda Cotton Development Organisation (CDO), Uganda Coffee Development Authority (UCDA), Local Government Agriculture and commercial services and KCCA Agriculture Grant.
Defence & Veteran Affairs
Committee on Defence and Internal Affairs’ report shows that the ministry of Defence & Veteran Affairs spent 97% of its budget that amounted to Shs1.4trillion.
Internal Affairs
The mandate of the Ministry of Internal Affairs is to provide a secure and peaceful environment for all Ugandans by keeping law and order, regulating movement of persons in and out of the country among others. The Ministry supervises 6 other votes including; Ministry of Internal Affairs Headquarters, Uganda Police Force, Uganda Prisons Service, National Citizenship and Immigration Control, Government Analytical Laboratory (DGAL) and National Identification and Registration Authority.
Parliamentary report shows that out of Shs19.3bn that was approved for ministry of Internal Affairs, Shs.10.966Bn (56.9%) was released and Shs9.311Bn (48.3%) was actually spent by the end of half year.
Education
According to the report from the committee on Education and Sports, the ministry of Education and Sports is one of the best performing ministries. The ministry headed by First Lady Janet Kataaha Museveni had an overall approved budget for FY 20l7l18 amounting to Shs2,501.123Bn (Excluding arrears and A.l.A) of which Shs.l,163.161Bn was released and overall release spent performance was Shs 1091.418Bn (93.7%) and all the release spent performance was above 90% except development that performed at 81.4% and 69.3% for Gou and donor respectively. Despite registering a good overall performance, the report noted that the sector continues to have low absorption of funds under the donor development component.
Finance
Ministry of Finance Planning and Economic Development (MFPED) is mandated to formulate sound economic policies, regulate financial management and ensure efficiency in public expenditure, mobilize local and external financial resources, and oversee national planning and strategic development initiatives for economic growth. Report on the committee of Finance revealed that the sector that supervises over 10 Votes registered an overall performance of 71%.
Health
A report from the sectoral committee on Health observed that out of Shs1,878.96bn allocated for the entire Health sector for FY 20l7/18, by the end of December 2017, the overall sector budget release stood at Shs878.32bn (46.7%) and Shs575.73bn was actually spent (65.5%) leaving a total of Shs302.59bn of the released budget unspent.
Parliament
According to the report from the committee on Legal, the Parliamentary Commission had a total approved budget of Shs483.76 Billion in FY 20l7/18, of which Shs318.45 Billion was released, registering a release performance of 65.8% at half period of the FY. Shs 270.05Billion was spent, implying an absorption rate of 84.8%.
Justice
The Ministry of Justice and Constitutional Affairs had a total approved budget of shs80.97 Billion in Financial Year 20l7/18 of which Shs 7 .28 Billion had been released to them by December 2017. On a Prorata basis, the ministry had received 58.4% of its approved budget and spent Shs34.08 Billion which is 72.1% of the released funds.
Energy
A committee on Natural Resources states that as at 31st December 2017, the Energy and Mineral Sector performed at36.6% in regard to releases from Central Government. A total of UGX 726.961bn was released to Ministry of Energy and Mineral Development including a supplementary of Shs105.875 to support the Thermal Generators.
Water
On the overall, the Water and Environment Sector performed at 67.7% in regard to releases from
Central Government. A total of Shs352.82bn was released to Ministry of Water and Environment, out of this 41.1bn (99. %) was released to National Water and Sewerage Corporation as the Government counterpart funding to the corporation.
State House
According to a report from the committee on Presidential Affairs, State House was allocated Shs245.5bn and as of end of the third quarter (March, 2018), total releases amounted to shs 277.045 billion and actual expenditure amounted to shs 267.963bn. This means that the released funds performed at 1l3% against the prorata target of 75% while actual expenditure registered a performance of 97% absorption rate.
OPM
The Office of the Prime Minister (OPM) was allocated Shs309.7bn in FY 2017/18 and as of the end of the second half (December, 20l7), total releases amounted to shs128.902 billion while expenditure outturn was shs123.18 billion.
KCCA
Kampala Capital City Authority (KCCA) was allocated Shs479.32bn and as of end of the first half (December, 20l7), total releases amounted to shs241.98 billion and actual expenditure amounted to shs. 144.95 bn. The released funds performed at 50.5% against the approved budget while actual expenditure registered a performance of 60% absorption rate.
Ethics
The ministry of Ethics and Integrity performed at 5l% of the released funds against the approved budget while actual expenditure registered a performance of 78.7% absorption rate.
Trade
According to a report from Committee on Tourism, Trade and Industry, the ministry of Trade, Industry and Cooperatives performed less than programmed at 39%. Out of the approved budget of Shs.64.593Bn, Shs.16.1Bn was spent by the First Half of FY 2017/18. The underperformance was mainly attributed to the poor performance of the Government and External finance Development budget.
Tourism
Parliament approved a budget of Shs99.2 billion to the Ministry of Tourism, Wildlife and Antiquities and at the close of the first half of the FY the sector was able to access Shs72.334 bn representing 72.9% of the approved budget mainly on account of appropriation in aid as the period under review is the peak time for tourists based revenues. The sector was able to absorb 70.4% of the funds availed and overall 51.3% of the approved budget was actualized during the period.
