(Kampala) – Members of Parliament on the Committee on Public Accounts (Local Government) have raised concerns over the excess release of funds to districts, suggesting that this has contributed to poor absorption and inefficient use of government budgets. This issue was highlighted in the committee’s report on the Auditor General’s findings for the 2022/2023 financial year, covering 37 district local governments, three cities, six divisions, and ten municipal councils.
Presenting the report on October 23, 2024, the committee’s chairperson, Hon. Gilbert Olanya, called for an investigation into why the Ministry of Finance is releasing more funds than what districts request. He cited Butambala District, which asked for UGX 1 billion for wages but ended up receiving UGX 5.5 billion. Similarly, Kitgum District received an unrequested supplementary release of UGX 2 billion.
Olanya noted that while some districts received excess funds, others struggled with delayed releases, affecting their ability to provide essential services. Many entities reported to the committee that funds were released in the last quarter of the financial year, leaving them with insufficient time to utilize the funds effectively.
Tororo District Woman Representative, Hon. Sarah Opendi, criticized the Ministry of Finance for over-allocating funds to some districts while others face financial shortages. She emphasized the need for fairness, saying, “The ministry is starving other entities and at the same time releasing funds that cannot be utilized. This needs to be corrected.”
Hon. Jackson Atima, representing Arua Central Division, urged the Ministry of Finance to adopt mechanisms that ensure the timely release of funds. He revealed that Arua City returned UGX 17.6 billion to the treasury, citing delays in fund disbursement as the reason for unspent money. “We have service delivery gaps, and these late releases by Finance are part of the problem,” Atima said.
Kumi District Woman Representative, Hon. Christine Apolot, echoed these concerns, stating that the release of excess funds has become common practice and requires explanation from the Ministry of Finance. “Districts cannot spend all the funds because they were not included in their budgets,” Apolot explained.
Despite the challenges highlighted, the committee observed that funds allocated under the Parish Development Model, totaling UGX 42.6 billion, were used appropriately. The program, aimed at improving household income, saw most savings groups receive their funds as planned, with groups adhering to registration requirements and maintaining updated member registers. “Most savings groups received their funds as budgeted, enabling the program’s objectives to be met,” Olanya added.
