Parliament Questions Excess Budget Releases to Districts, Citing Impact on Service Delivery

The Public Accounts Committee (Local Government) has raised concerns over the Ministry of Finance’s release of funds exceeding district requests, which it argues contributes to low fund absorption and disrupts service delivery.

Presenting the committee’s report on the Auditor General’s findings for the 2022/2023 financial year, Committee Chair Hon. Gilbert Olanya highlighted instances where districts, such as Butambala, received Shs5.5 billion for wages despite requesting only Shs1 billion. Similarly, Kitgum District was allocated Shs2 billion in supplementary funds that it had not requested.

Olanya called for an investigation into the motives behind these excess allocations, noting that while some districts are receiving surplus funds, others experience delayed disbursements, affecting essential services. “Several entities reported receiving funds only in the last quarter of the financial year,” he said.

Hon. Sarah Opendi, Tororo District Woman Representative, criticized the ministry for over-allocating to some districts while leaving others underfunded. “The ministry is starving some entities while releasing unutilizable funds elsewhere,” she remarked.

Arua Central Division’s Hon. Jackson Atima stressed the need for timely releases, revealing that Arua City returned Shs17.6 billion due to delays. “Timely release is crucial to avoid unspent funds being returned to the treasury,” he said.

Meanwhile, Kumi District Woman Representative, Hon. Christine Apolot, stated that the Finance Ministry’s trend of excess funding is problematic, as districts often cannot utilize unexpected amounts.

On a positive note, the committee reported successful fund utilization under the Parish Development Model, with Shs42.6 billion allocated to improve household incomes effectively disbursed and managed across savings groups.