Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel “Public Finance Management in Local Government (Use of Public Funds in Councils)?”

Public Discussion, 24th of Public Discussion, 24th of June, 2010 in Ndola, Savoy June, 2010 in Ndola, Savoy

Hotel Hotel

“Public Finance Management in Local Government (Use of Public Funds in Councils)?”.

Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel

Presentation by German Development Cooperation 24.06.2010

SDI Capacity Development

Alignment with National Aims: This involves identifying development problems, designing solutions and successfully testing and implementing these. The stakeholders combine and coordinate political will, interests, knowledge, values and financial resources in order to achieve their own development goals.

DIP

Component

National

Level

Institutional and

Human Resource

CD

Legal and

Regulatory

Framework

LocalDevelopme

ntPlanning

andBudgeting

FinancialManagem

entand

Accounting

SensitisationAnd Civic

Education

Service Provision and

Sector Devoluti

on

FiscalDecentralis

ationand

RevenueMobilisation

Sub-

National

Level

DS to conduct

Sensitisation and Civic

Education

Planning and

Budgeting Act

Amendment of

the Rating

Act

GVD and DS in

MLGH and Budget Office in MoFNP develop

necessary HR CD

Assistance to Training Institutes

Implementation at District Level

Guidelinesfor

MTEF/ABB and Rolling

Out

Integrated Developme

nt Plans

Implementation of

MTEF/ABB at District

Level

Finance and Audit Manual

Software LAMIS

Implementation at District Level

Formula Based Grant

System

Amendment of the

Rating Act

Revenue Enhancem

ent Strategy

DS develops

Sector Devolution Plans

Service DeliveryManagement of Service Delivery

Coordination thru Sector

Advisory Group,JTWGsTWGs

Programme

ManagementE&M



SDI Capacity Development: Up scaling

Sub-sector goal: The Zambian government uses harmonized strategies and tested concepts for improved service delivery at sub-national level for the successful implementation of the National Decentralization Policy

Needs assessment together with Councils, Province Administration, MLGH and MoFNP



Challenges•Debt situation in councils serious •Indirect and untimely grant transfers to councils•Accountability and transparency – lack of downward accountability•Lack of transparency has its impact on the revenue generation

e.g. Budget of Ndola City Council of 2009 around 38 billion Kwacha,Collection 2009 29 billion Kwacha Service Provision around 8.5 billion Kwacha in 2009Main revenue source for Ndola are Rates (22 billion Budget, 14.5 billion

Actual)•Overall funding system is not in balance•Poor linkage between expenditure and revenue assignments•Major tax assignments and revenues withdrawn from local councils (over past 20 years) •Persistent lack of autonomy of councils to improve on the own source revenues•Decisions impacting on LG expenditure without sufficient compensation



How can we improve the Use of Public Funds in Councils?

Important Requirements(a) empower local communities by devolving decision making, function and resources from the Centre to the lowest level with matching resources in order to improve efficiency and effectiveness in the delivery of services; (b) design and implement a mechanism to ensure a "bottom up" flow of integrated development planning and budgeting from the District to the Central Government; (c) enhance local political and administrative authority in order to effectively and efficiently deliver services; (d) promote accountability and transparency in the management and utilisation of resources; (e) develop the capacity of Local Authorities and communities in development planning, financing, co-ordinating and managing the delivery of services in their areas; (f) build capacity for development and maintenance of infrastructure at local level; (g) introduce an integrated budget for district development and management; and (h) provide a legal and institutional framework to promote autonomy in decision making at local level.

Documents

Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel “Public Finance Management in Local Government (Use of Public Funds in Councils)?”