Councils want control of development budget
District councils have decried delays by some line ministries to devolve the development budget to councils, saying it is hampering progress of projects at local level.
Malawi Local Government Association (Malga) Managers Network (Magnet) chairperson Rodney Simwaka, who is also Mzimba district commissioner, said although a number of government functions including other recurrent expenditures (ORT) were devolved to local authorities, ministries are still holding on to the development budget.
He was speaking in Lilongwe on Tuesday evening during a meeting with parliamentary clusters of Health and Local Authorities on the proposed 2024/25 National Budget which was organised by Malga.
Government adopted the Decentralisation Policy in 1998 and the subsequent enactment of the Local Government Act of 1998 provided a legal framework to make the policy operational.
However, Simwaka said apart from some ministries that have partially devolved like the Ministry of Health in the area of health facilities rehabilitation, and the Ministry of Education in the construction of low cost classes the rest are yet to devolve.
He said: “Decentralisation was conceived to enable the government better serve its citizens because of the proximity of local governments to people. Therefore, they deserve to be empowered to deliver. While there has been progress, challenges persist, particularly in fiscal devolution.”
Commenting on concerns of lack of capacity in councils, Simwaka said, the councils are able to handle the development budget after recruiting accounts personnel who are headed by qualified directors of finance.
He added that even the directorate of Public Works has qualified engineers and their numbers have been beefed up.
In an interview, National Local Government Finance Committee (NLGFC) executive director Kondwani Santhe said issues of devolution fall under the Ministry of Local Government, Unity and Culture.
He did not also respond on the ratio of the devolved funds so far.
In an interview yesterday, a former public officer familiar with the subject faulted the ministry for slowing down in championing the decentralisation policy which has led to line ministries holding on to powers against the spirit of devolution.
The Public Sector Reforms Department indicated earlier that reforms prioritised the review of the Local Government Act (2010) which, among other issues, will ensure that the central government meets the requirement to transfer five percent of national revenue to councils.
The department was expected to engage the Ministry of Finance and Accountant General’s Department to allow for ceding of funds that Government has been collecting to the councils. Some of the funds to be ceded are the motor vehicle registration fees, casino fees, gambling fees, mining fees, toll fees and energy levy”.
The reforms programme, led by Vice-President Saulos Chilima, made some policy pronouncements that raised hope that the decentralisation would be implemented.
Commenting on the developments, Malga executive director Hadrod Mkandawire said that it is worrisome that in the proposed 2024/25 national budget, the construction of teacher’s houses has been removed from local government authorities.
He said budgets have to follow functions and now that 19 sectors have been devolved to local authorities.
