Thursday April 3 2014

Inconsistencies cited in Budget execution



The Ministry of Finance yesterday expressed dismay over the gross inconsistencies in budget execution in all ministries, agencies and departments, which is leading to poor performance of the 2013/14 National Budget.

During the release of Shs2.2 trillion quarter budget funds for this financial year yesterday, Secretary to the Treasury Keith Muhakanizi said the gross inconsistencies are very clear.

“Analysis of the half year budget performance reports by ministries, departments and agencies has revealed gross inconsistence between the planned and achieved outputs,” said Mr Muhakanizi.

Mr Muhakanizi also noted that huge unspent balances at the end of the financial year and poor service delivery at the both central and local governments is partly attributed to poor procurement planning.
Mr Muhakanizi said accounting officers have been reminded to ensure that they initiate timely procurement and operationalise the mandate of finance committees as a means of ensuring implementation of budgets.
Mr Muhakanizi announced that to facilitate the disbursement of funds by April 10, accounting officers are required to provide the breakdown of development cash limits by project and non-wage by programme not later than April 8.

new changes
Unlike in the past, in this financial year, the Ministry of Finance, passed a rule that requires ministries to submit their quarterly budget expenditure with a view to tracking how budgets are performing to ensure value for money.