The Municipal Budget Analyst took stakeholders through a PowerPoint presentation on the 2019 Mid-year Budget Performance.
The 2019 Composite Budget had its implementation running from 1st January, 2019 which also marks the beginning of the 2019 financial year. The various funding sources as approved by the General Assembly had a total budgeted estimate for the year as GH₵10,258,246.56
Under revenue, Internally Generated Fund (IGF) constituted GH₵1,030,100.00. The District Assemblies Common Fund (DACF) had an allocation of GH₵4,073,540.42 whereas the District Development Facility (DDF) also had a budgeted figure of GH₵986,748.00. Government of Ghana (GoG) releases which comprises Compensation of Employees and also GoG Goods and Services to Decentralized Departments had a budgeted figure of GH₵3,646,533.54 whilst Donor Funds constitute GH₵521,324.60.
As at the third quarter of 2019, the assembly had expended an amount of GH₵5,986,935.59 representing 58.36% as against the total budget estimate for the year. Cumulative Internally Generated Fund (IGF) recorded a figure of GH₵757,723.00 representing 12.7% of expenditure incurred in the period under review.
The District Assemblies Common Fund (DACF) which also includes the MP’s share of the Common Fund and also grants to Persons with Disability (PWD) recorded a cumulative amount of GH₵1,384,495.79 as expenditure incurred in the third quarter while the District Development Facility (DDF) had a cumulative expenditure value of GH₵878,529.88. Government of Ghana (GoG) expenditure recorded a cumulative figure of GH₵3,137,282.74 comprising of both Compensation of Employees and GoG Goods and Services to Decentralized Departments.
The decentralized departments also had support from the releases from IGF. With respect to DACF, the departments which had activities to undertake in the third quarter had their part of monies released for that specific purpose. Some were made to submit their work plan and budget covering their activities for the year and as and when the time is due to embark on an activity then the monies are released.
IGF Variance / Trend Analysis
The total IGF for the year 2019 is GH₵1,030,100.00 with its approved third quarter cumulative estimate as GH₵772,575.00 in which the assembly was able to raise an amount of GH₵757,723.00 indicating a variance of GH₵14,852.00. The cumulative amount raised represents 98.1% of the budgeted amount GH₵772,575.00.
Collections in revenue headings for Fees, Licences and Rates all exceeded their budgeted amount for the quarter while revenue accumulated under Lands & Royalties, Rates and Fines & Penalties fell short of the budgeted amounts.
Draft Fee-Fixing Resolution 2020
The MBA informed stakeholders present that the F&A sub-committee has recommended to the Executive Committee for the roll-over of the 2019 Fee-Fixing Resolution to 2020. Everyone present agreed that it should be done that way because the 2019 was just revised in 2018 and the economic condition seem to be the same generally in the municipality.
Draft 2020 Composite Budget
The MBA explained to stakeholders the meaning of the various funding sources which is the Internally Generated Fund (IGF), District Assemblies Common Fund (DACF), District Development Facility (DDF), Urban Development Grant (UDG), Government of Ghana (GoG) and Donor. In clarifying it to the simplest form, he classified the funding sources into two namely; Conditional and Unconditional sources of fund. According to him, the conditional sources of fund include DDF and UDG which is a performance based source of fund. Performance based in the sense that, there are indicators attached to them and their release is solely on how you qualify or meet the national average.
He took members present through the various ceilings and budgeted figures for the various funding sources including DDF, GOG, DACF and IGF.
Hon. Kwame Aidoo, Chairman of the F & A Sub- committee of the Assembly was of the view that management should take pragmatic steps in addressing the issue of inadequate logistic support as the main drawbacks to revenue mobilization in the district.
The Municipal Budget Analyst also took stakeholders through projects and programmes that were completed within the year 2018 and also the on-going projects.
QUESTIONS & ANSWER SECTION
The DCD and his team of Technocrats address the concerns of the stakeholders which went a long way to enlighten stakeholders on the operations of the Assembly and the Local Government Service.