THE 2021/22 Local Authorities’ budget is estimated at MK 282.52 billion. The reflect a 6% decrease when compared to the approved budget of 2020/21 financial year mainly due to the revised government financial year from 12 months in 2020-2021 (July – June) to a transition of 9months (July – March for the April – March thereafter).

In the budget statement presented by Minister of finance Felix Mlusu in the National Assembly, Personal Emoluments (PE) comprise a major part of the budget estimated at MK214.96 billion (76% of budget).

 The budget for Other Recurrent Transactions (ORT) is estimated at MK 37.54 billion (13% of budget) and includes the Constituency Development Fund (CDF) estimated at MK 7.72 billion, the General Resource Fund estimated at MK 2.53 billion (1%) and the budget for all devolved sectors estimated at MK 27.29 billion (10%).

The Development Budget is estimated at MK 30.08 billion and comprises of resources for Construction of City roads estimated at MK 23.30 billion, the Borehole and Water Structures fund estimated at MK 2.32 billion, the District Development Fund (DDF) estimated at MK 2.80 billion, Dualization of Chileka –Blantyre Road estimated at MK1.0 billion and the Infrastructure Development Fund estimated at MK 0.61 billion.

In his statement, Mlusu further said on CDF each constituency is allocated MK40 million per year.

According to NLGFC Budget Analyst Jonathan Banda, CDF is used for implementing small projects and other emergencies that occur within the constituencies including rehabilitation of existing infrastructures.

On his part, the Executive Director of National Local Government Finance Committee (NLGFC), Alifeyo Banda appeals for 'more support from all stakeholders to the Fiscal Decentralisation process so that coordinated and effective guidance is provided to Local Authorities to enhance accountability and improved service delivery to the communities in the budget implementation process'

Composition of the Central Government Transfers