LAs to generate K7.4bn in 2012/13 budget
Locally-generated revenue for local authorities (LAs) is estimated at K7.4 billion (about $24 million), representing an increase of 26 percent over the 2011/2012 approved budget.
The revenue forecasts have taken into account forecast optimal revenue performance of LAs.
The major sources of locally-generated revenue for LAs include property rates, market fees, fees and service charges, licences and permits and collections from commercial undertakings.
City councils contribute significantly to the overall revenue budget of LAs specifically arising from property rates collections.
In the 2012/2013 budget estimates, their contribution is 82 percent of the overall local revenue projection.
Mzuzu and Blantyre city councils will use revised QVRs for property billing in the 2012/2013 financial year.
Blantyre and Zomba city councils have made provisions for the review of their QVRs in the financial year.
Other than property rates, LAs have mainly used updated customer database to forecast revenue collections in the year.
On commercial ventures management, LAs have been urged to partner the private sector in management of the ventures.
A significant case at hand is Mzuzu City Council, which has made provisions for the design of a multi-purpose shopping mall and has already approached the private sector, specifically commercial banks to invest in the project with the council providing valued land as its equity contribution.
Donor funds
K624 million (about $2.08m) has set aside for in the 2012/2013 budget estimates, representing committed funds from the National Aids Commission (NAC) to LAs for implementation of multi-sector district HIV-Aids implementation plans.
LAs will also access development financing under the Local Development Fund (LDF) financing mechanism in the financial year.
Expenditure priorities
LAs have prioritised expenditures that promote service delivery. Specifically, expenditures have been aligned to sectoral specific outputs and programmes in such sectors as education, agriculture, health, water, gender, labour, forestry, environment, housing, irrigation, immigration, trade and fisheries.
Specific details of outputs to be attained by respective councils are outlined in the output-based budget document.
LAs shall again implement several development projects in the 2012/2013 financial year. These are outlined in the capital budget document.
Conclusion
The National Local Government Finance Committee (NLGFC) would like to appeal for more support from all sectors and other stakeholders to the fiscal decentralisation process so that coordinated and effective guidance is provided to the LAs to enhance accountability and improved service delivery to the communities in the budget implementation process.
