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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
Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel
Presentation by German Development Cooperation 24.06.2010
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
Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel
Presentation by German Development Cooperation 24.06.2010
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
Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel
Presentation by German Development Cooperation 24.06.2010
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.