Kotido to Return Billions in Unspent Funds

1566 Views Kotido, Uganda

In short
Kotido district has declined in its expected budget performance plan having managed to spend 38 percent this financial year. As of May 29th, according a report on the budget performance, Kotido district has 3. 4 billion shillings as unspent balance. The report further indicates that more 2.8 billion shillings is yet to be released as government grants.

Kotido district has declined in its expected budget performance plan having managed to spend 38 percent this financial year.
 
Last year, Kotido district local government approved a budget of 14. 7 billion shillings to implement various activities such as construction, revenue enhancement and service delivery.
  
Top among the priorities in the 2016/ 17 financial budget were construction of a multi-billion administration block, drilling of 17 boreholes and road construction works all of which are incomplete with a lot of project funds still unspent before close of the fiscal year.
 
The slow absorption rate now worries elected leaders who express fears that the funds could be returned to the consolidated account.
 
Ignatius Nangiro, the district Vice Chairperson who doubles as Secretary for Finance and Administration, is concerned that many departments are likely to return public funds to the treasury after failing to spend it within this financial year. He said most of the unspent funds are for physical infrastructure projects.
 
//Cue in "Am not...
Cue out...started."//
 
Joshua Mabiya, the Kotido District Chief Administrative Officer, has acknowledged that the absorption rate has been 'considerably very low'. He attributes the poor budget performance to Integrated Financial Management System (IFMS) which causes delays in remitting funds from the Ministry of Finance.
 
//Cue in "There are at times...
Cue out...we have."//
 
Mabiya revealed that he has written to the ministry asking for technical support as far as IFMS is concerned.
 
As of May 29th, according a report on the budget performance, Kotido district has 3. 4 billion shillings as unspent balance.  The report further indicates that more 2.8 billion shillings is yet to be released as government grants.
 
In the last three quarters, government has released 11.9 billion shillings. Of this only 7 billion has been spent.
 
The summary report shows that water department has spent only 12% of the releases amounting to 584.2 million shillings. Engineering and roads spent 27 % of the releases while production and marketing spent 4 %. Other departments scored over 43%.
  
The report was presented on Tuesday to the district council during the passing of the 2017/2018 financial year budget.
  
Over 17 billion shillings has been approved for the next financial year.