Maravi

'Govt hasn't approved budget proposals for most councils'

'Govt hasn't approved budget proposals for most councils'
By Namakau Nalumango
Friday June 06, 2008 [04:00]

LoCAL government minister Sylvia Masebo yesterday said the government has not approved most of this year’s budgets for the councils countrywide because their proposals were unrealistic and unattainable. Announcing the 2008 councils’ annual estimates of income and expenditure, Masebo said budgets for Lusaka, Ndola and Kitwe city councils were not approved, among others.

However, Masebo said budgets of all the municipal councils were approved but with amendments. These included Mongu, Mufulira, Chililabombwe, Chingola, Mansa, Mbala, Chipata, Solwezi, Kabwe, Kasama, Luanshya, Choma, Mazabuka and Kalulushi.
She said of the 54 rural councils, only 51 councils’ budgets had been approved across the country but with some amendments.

“We have, however, rejected the 2008 budgets for three councils in North-Western Province, namely; Mwinilunga, Mufumbwe and Kasempa district councils because the budgets were not prepared according to the local government standards. The budgets were also found to be unrealistic and unattainable,” she said.

Masebo said the councils whose budgets were approved with amendments or not approved had made proposals for improved salaries and conditions of service without taking into account their capacity to pay the proposed salaries and allowances. She said in certain cases, the proposed increments were meant to benefit senior officers than the ordinary workers. She said there would be no salary increment and any improvement of conditions of service this year because councils have to first clear the backlog of salary arrears and other outstanding statutory obligations and suppliers of goods and services. Masebo said it was not government’s responsibility to clear such debts.

She said, however, it was important to note that in the approved budgets, the issue of proposed salary increments and improved conditions of service had been considered on council-by-council basis based on last year’s budget performance. She said negotiations for improved salaries and conditions of service for unionised and non-unionised staff should be within the council’s capacity to pay and also provide services to communities where the revenue comes from.

Masebo also said most councils had proposed sharp increases in fees and charges without taking into account the local communities’ ability to pay. She said that property tax was the major source of revenue for the councils. However, Masebo said it had since been observed that some councils were basing their budgets in anticipation of a valuation roll which had not yet been approved.

“For these councils, we removed this component as it was not within the provisions of the law. Until the roll is approved, it must not be effected,” Masebo said. “This will also apply to personal levy. As councils, they need to know how many people are in their districts and are eligible to pay personal levy and have a register in place for follow ups.”

She urged all councils to strengthen their revenue collection capacity because at the moment, the collection efficiency of revenue was very low almost in all councils.
“They seem to be good only at overcharging their communities without corresponding service delivery,” she said.

Masebo said in preparing their budgets, councils were directed to adhere to guidelines which included realistic sources of revenue, payments of statutory obligations such as ZRA income taxes and LASF/NAPSA pension contributions. The councils were also expected to ensure that 40 per cent of their total budgets went towards provision of services.

Masebo said the budgets were delayed because it was in national interest that they were scrutinised to ensure legal compliance and that only budgets with a vision to carry out service delivery were approved because it is only such budgets that the government can use to foster development and service provision to the local communities.

Masebo said a careful scrutiny of all budgets revealed that Southern Province met all the budget guidelines with Mazabuka Municipal Council’s budget being approved without any amendments while North-Western, Luapula and Northern provinces ranked lowest in terms of meeting the guidelines.

Masebo said the government through her ministry had produced a standard template for fees and charges to be applied by all 72 councils although in some cases sources of revenue based on levies, fees and charges would be council-based and would be approved as such. She said any revenue outside this template must be in consultation with her ministry in order to rationalise or standardise revenue sources and also to protect the community from paying various license fees and charges which are exorbitant or a nuisance.

Masebo said the government has noted with satisfaction that most councils were now generating more revenue from rates. She said for this reason, the government would financially support selected councils to update their valuation rolls this year and funding for selected services such as water and sanitation and markets constructions. Masebo said four city councils would also be assisted to pay off outstanding retirees benefits.

She also warned councils against failure to produce monthly receipts and payments saying that was an offence which could result in forfeiture of grants by the offending councils. Masebo further warned provincial local government officers against underperforming. She said even some budgets which were poorly done could have been detected if officers involved were more effective in their duties.

Labels: 2008 BUDGET, COUNCILS, LOCAL GOVERNMENT, SYLVIA MASEBO

posted by MrK @ 3:23 AM