World Bank Group has asked the central government to stop delays in releasing funds to local for development programmes saying delays affect project implementation and the money gets returned to treasury without being used.
Similarly, the World Bank has also advised the central government and local government to have a proper budgeting cycle in place to guide the implementation of progammes such that all activities are funded without falling into revenue shortfalls.
Speaking during the Uganda Intergovernmental Fiscal Transfer for Results workshop on January 24, 2023 at Serena Hotel Kigo, the World Bank country manager Ms R. Mukami Kariuki, said the central government should ensure that all infrastructure that has been established under the Uganda Intergovernmental Fiscal Transfer is functioning.
This means not only capital investment in building the facilities, but also ensuring that the staffing, non-wage recurrent cost, equipment, and other critical items that will ensure functionality of these facilities are properly budgeted for and provided,” she said.
As part of the reform programme, the government established a financing framework between FY2018/19 to FY 2023/24, for uplifting financing to decentralised service delivery while focusing on investments that would stimulate improvement in the quality and quantity of service across the country.
The World Bank committed to contribute a total of $500 million through the Uganda Intergovernmental Fiscal Transfer (UgiFT) programme for results for financing investments in Education, Health, Agriculture, (micro-scale irrigation) sub programmes. The European Union is also contributing 10 million euros.
Ms Mukami said ensuring sustainability of the reform’s achievement, pointing out that this requires the government’s commitment in maintaining the financing to local governments as agreed in the Mid Term Plan and subsequently the Mid Term Expenditure Frame .
On procurement and management: Ms Mukami said: “We have noted a number of infrastructure completion delays caused by inefficiencies in contract management and contractor capacity due to over commitment. It is key that the government strengthens the capacity of local governments as well as PPDA supervision to ensure contracts are completed.
FUNDS Sectors The World Bank committed to contribute a total of $500 million through the Uganda Intergovernmental Fiscal Transfer programme for results for financing investments in Education, Health, Agriculture, (micro-scale irrigation) sub programmes. The European Union is also contributing 10 million.