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Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel

Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel. “Public Finance Management in Local Government (Use of Public Funds in Councils) ?”. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel. Sub- National Level. DIP Component. National Level. Fiscal Decentralisation

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Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel

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  1. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel “Public Finance Management in Local Government (Use of Public Funds in Councils)?”.

  2. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel Sub- National Level DIP Component National Level • Fiscal • Decentralisation • and Revenue • Mobilisation • Financial • Management • and • Accounting • Local • Development • Planning and • Budgeting • Service Provision and Sector • Devolution • Legal and • Regulatory • Framework • Sensitisation • And Civic • Education • Programme Management • E&M • Institutional and • Human Resource • CD 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. 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 Guidelines for MTEF/ABB and Rolling Out Integrated Development 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 Enhancement Strategy DS develops Sector Devolution Plans Service Delivery Management of Service Delivery Coordination thru Sector Advisory Group, JTWGs TWGs Presentation by German Development Cooperation 24.06.2010

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

  4. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel • 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 2009 • Main 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 Presentation by German Development Cooperation 24.06.2010

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

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