Final Summary for 2022-23 Council Budget 5th April 2022
SUMMARY OF THE 2022-2023 LOCAL AUTHORITY BUDGET
1.0 INTRODUCTION
Section 149(2) (a)&(d) of the Republican Constitution of Malawi provides mandate to the National Local Government Finance Committee (NLGFC) to receive all estimates of revenue and expenditure from all Local Government Authorities and to prepare a consolidated budget. In fulfillment of this constitutional mandate, the National Local Government Finance Committee has consolidated the 2022-2023 budget estimates for all the thirty-five (35) Local Government Authorities in Malawi. The consolidated Local Government Authorities approved budget estimates are presented in two budget documents as follows:
- Consolidated Program Based Budget Estimates
This contains information presented at Program level for each Local Government Authority. It specifies the key results (outputs) to be achieved in the 2022-2023 financial year, what was achieved in the previous financial year(s) and the resources that have been earmarked for implementing functions that will produce those results. Each Local Government Authority uses standardized indicators for reporting results (outputs) to be achieved under each program. The standardization was done to ensure uniformity but also for easy tracking and reporting.
- Consolidated Detailed Budget Estimates
This presents detailed financial budget estimates for all Local Government Authorities (LGA) at Vote, Cost Centre, Programme, Sub Programme and Item level. It includes a consolidated summary of all Local Government Authority votes, summaries by type of LGA and detailed estimates for each LGA.
2.0 The 2022-2023 Local Authority Budget Outlook
The consolidated budget for Local Government Authorities comprises of financial resources from central government transfers and own source revenues. The following is the summary of the budget estimates presented according to the category of the revenue source:
2.1 Central Government Transfers
These comprise of resources from Other Recurrent Transactions (ORT), Development/Capital Budget and Personnel Emoluments. The 2022/2023 LGA budget is estimated at MK 411.01 billion representing a 31% favorable variance over the approved budget of 2021/2022 financial year which was estimated at K282.52 billion. Personal Emoluments comprise a major part of the budget estimated at MK324.86 billion as indicated in figure 1 below:
Figure 1: Composition of the 2022-2023 Central Government Transfers
2.1.1 Other Recurrent Transactions (ORT)
This comprises of devolved sector grants and the General Resource Fund. Currently the following 18 sectors have devolved their functions to Local Governments: Agriculture, Education, Health, Gender, Community Development, Youth, Sports, Housing, Trade, Water, Environment, Forestry, Fisheries, National Registration Bureau, Labour, Immigration, Irrigation and Disaster.
The General Resource Fund is an unconditional grant that is used for implementation of the following:
- Other Recurrent Transaction (ORT) funded activities for Council Secretariat Directorates (e.g. Planning, Finance, Public Works, Administration etc.);
- Councilors’ functions (including payment of honoraria and holding of council meetings); and
- Chief’s expenses.
The overall ORT budget estimates variance is 34% when compared to the 2021/2022 approved nine (9) months budget as indicated in table 1 below. The favorable variance is for the General Resource Fund which has gone up by 60%. The budgets for devolved sectors have a variance of 33% because of the change of government 12month FY from 9months the previous FY while the budget for Education and Health Sector Covid response has not changed.
Table 1: Sector Other Recurrent Transactions (ORT) and General Resource Fund (GRF) (MK)
|
Name of Sector/Fund |
2022-2023 Budget Estimate |
2021-2022 Approved Budget |
Percentage Variance |
|
Agriculture |
1,891,513,963 |
1,418,990,220 |
33% |
|
Education |
11,750,384,800 |
8,814,992,348 |
33% |
|
Education Covid |
3,200,000,000 |
3,200,000,000 |
0% |
|
Health |
10,381,881,573 |
7,788,358,269 |
33% |
|
Health- Covid |
2,720,000,000 |
2,720,000,000 |
0% |
|
Health – Devolved Drug |
1,565,973,000- |
|
- |
|
Gender |
271,731,288 |
203,849,428 |
33% |
|
Community Development |
271,731,288 |
203,849,428 |
33% |
|
Youth |
203,798,465 |
152,887,071 |
33% |
|
Sports |
194,093,776 |
145,606,734 |
33% |
|
Housing |
203,798,466 |
152,887,071 |
33% |
|
Trade |
203,798,466 |
152,887,701 |
33% |
|
Water |
242,617,221 |
182,008,418 |
33% |
|
Environment |
205,720,115 |
154,328,669 |
33% |
|
Forestry |
203,798,465 |
152,887,071 |
33% |
|
Fisheries |
203,798,465 |
152,887,071 |
33% |
|
National Registration Bureau |
268,496,391 |
201,422,649 |
33% |
|
Labour |
271,731,288 |
203,849,428 |
33% |
|
Immigration |
271,731,288 |
203,849,428 |
33% |
|
Irrigation |
271,731,288 |
203,849,428 |
33% |
|
Disaster |
1173658512 |
880,464,000 |
33% |
|
All Devolved Sectors |
35,971,988,118 |
27,289,854,432 |
38% |
|
General Resource Fund |
4,040,121,236 |
2,526,497,593 |
60% |
|
Total ORT |
40,012,109,354 |
29,816,352,025 |
34% |
2.1.2 Development Budget
The budget for locally funded projects consists of the District Development Fund (DDF), Constituency Development Fund, Infrastructure Development Fund (IDF), Water Structures Fund and funds for Construction of City Roads (see Table 2 below). As indicated in table 3 below, the total 2022-2023 capital budget has gone up to MK46.13 billion representing a 20% increase from the previous year’s budget of MK37.75 billion. The only fund that has substantially increased is the Constituency Development Fund, which was previously being categorized as ORT.
Table 2: Development Budget
|
Name of Fund |
2022-2023 Budget Estimate |
2021-2022 Approved Budget |
% Increase (decrease) |
|
Constituency Development Fund |
19,300,000,000 |
7,720,000,000 |
150% |
|
District Development Fund |
4,067,813,695 |
2,803,397,376 |
45% |
|
Infrastructure Development Fund |
810,509,438 |
607,882,079 |
33% |
|
Water Structures Fund |
2,316,000,000 |
2,316,000,000 |
0% |
|
Dualization of Chileka –Blantyre Road |
1,000,000,000 |
1,000,000,000 |
0% |
|
Construction of City Roads |
18,640,000,000 |
23,300,000,000 |
-20% |
|
Total |
46,134,323,133 |
37,747,279,455 |
22% |
The resources for construction of city roads have been allocated as indicated in Table 3 below:
Table 3: City Roads Construction Fund Approved Projects
|
Name of Council |
Name of Project |
Amount (MK) |
|
Blantyre City |
Rehabilitation of Chipatala Avenue-Kamba (1.2Km) |
584,000,000 |
|
|
Rehabilitation of Lali Lubani Road across Masauko Chipembere Highway via Malawi Polytechnic Village-Kenyatta Drive (1.7Km) |
648,000,000 |
|
|
Rehabilitation of Namiwawa-Sunnyside (Bankroad and Smythe Road) – 2Km |
768,000,000 |
|
|
Upgrading to asphalt surface of Michiru Road – Likhubula (Black box) – 1.5 Km |
600,000,000 |
|
|
Upgrading to asphalt surface of Nkolokoti Road (Makhetha) – 5 Km |
1,420,000,000 |
|
|
Upgrading to asphalt surface of Newlands-Manje via Chiwembe Road – 2 Km |
720,000,000 |
|
|
Upgrading to asphalt surface of Old Zomba Road – Mapanga (4.2 Km) |
1,380,000,000 |
|
|
Total |
6,120,000,000 |
|
Lilongwe City |
Rehabilitation of Area 49 Old Gulliver – Kaunda Road (2.5 Km) |
720,000,000 |
|
|
Rehabilitation of Mchesi-Area 23 (5Km) |
1,400,000,000 |
|
|
Upgrading to asphalt surface of Area 25– Dzenza (3.3Km) |
800,000,000 |
|
|
Upgrading to asphalt surface of Biwi-Penyenye-Area 38 (6 Km) |
1,600,000,000 |
|
|
Upgrading to asphalt surface of Mtandire – Old Airport Airwing (6 Km) |
1,600,000,000 |
|
|
Total |
6,120,000,000 |
|
Mzuzu City |
Upgrading to asphalt surface of Dunduzu – Mzuzu Academy (7Km) |
1,200,000,000 |
|
|
Upgrading to asphalt surface of Dunduzu – NOCMA fuel reserves (6 Km) |
1,400,000,000 |
|
|
Upgrading to asphalt surface of Mzuzu Government– Luwinga (6.5 Km) |
600,000,000 |
|
|
Total |
3,200,000,000 |
|
Zomba City |
Rehabilitation and upgrading of Kalimbuka Road (2.5Km) |
800,000,000 |
|
|
Rehabilitation and upgrading of Namiwawa Road Dual Carriage Way-800m |
560,000,000 |
|
|
Rehabilitation and upgrading of Sadzi Road (1.2Km) |
400,000,000 |
|
|
Thundu Road (2Km) |
760,000,000 |
|
|
Upgrading and Rehabilitation of Namiwawa Road Extension (SRWB Junction to Mpunga Market) – 2.5 Km |
680,000,000 |
|
|
Total |
3,200,000,000 |
2.1.3 Personnel Emoluments
The Personnel Emoluments budget is made up of funds for salaries, leave grants and other allowances for Local Government Authority for central government paid staff and sector staff of Health, Education and Agriculture.
The Personal Emoluments budget for 2022-2023 is K339.3billion against a total ceiling of K324.9billion. The MK14billion difference is as a result of the inclusion of additional personnel that Councils anticipate to recruit following an authority to fill some of the vacancies by DHRMD.
Table 4: Comparison of Personal Emoluments Estimates (MK)
|
Budget Category
|
2022-23 Budget Estimate |
2021-22 Approved Budget |
Percentage Change |
|
Total Personal Emoluments |
339,299,488,196 |
214,958,198,195 |
58% |
2.2 Locally Generated Revenues
Locally generated revenues are one of the main sources of financing for Local Government Authorities as provided in section 44(1) of the Local Government Act, 1998. The 2022-23 budget for locally generated revenue has slightly gone up by 23% (27.5 billion) when compared to MK22.31 billion for the 2021-2022 financial year. Table 5 presents a summary of the local revenue budget:
Table 5: Summary of 2022-2023 Budget Estimates for Local Revenue
|
Type of LGR |
2022-23 Budget Estimate |
2021-22 Approved Budget |
% Increase |
|
Central Government Property Rates |
580,850,270 |
435,637,704 |
33% |
|
Other Property Rates |
11,347,059,962 |
9,322,499,094 |
22% |
|
Income from Market Establishments |
4,101,797,852 |
3,110,495,311 |
32% |
|
Fees and Service Charges |
6,500,638,447 |
5,709,521,098 |
14% |
|
Licenses and Permits |
4,099,186,033 |
3,229,208,132 |
27% |
|
Income from Commercial Undertakings |
868,583,182 |
497,315,960 |
75% |
|
Total Locally Generated Revenues |
27,498,116,015 |
22,304,799,299 |
23% |
City Councils contribute the biggest share (75%) to the Local Revenue Budget as indicated in figure 2 below:
Figure 2: 2022-23 Local Revenue Budget by Council Type
3.0 Summary of 2022-23 Budget Estimate for Local Authorities
The following is the summary of 2022/23 budget estimates for Local Government Authorities for the resources that will be spent at Council level. This excludes the estimates for Personal Emoluments which are still spent at central government level.
Table 6: Summary of Council Budget Estimates for 2022/23 Financial Year (MK)
|
TOTAL ORT |
TOTAL CAPITAL |
TOTAL LOCALLY GENERATED REVENUE |
TOTAL BUDGET FOR THE COUNCIL |
|
|
City Councils |
||||
|
Blantyre |
530,685,375 |
8,187,234,388 |
10,012,640,111 |
18,730,559,874 |
|
Lilongwe |
552,497,669 |
6,739,234,388 |
7,276,442,569 |
14,568,174,626 |
|
Mzuzu |
282,497,672 |
3,483,234,388 |
2,497,300,000 |
6,263,032,060 |
|
Zomba |
155,796,100 |
3,483,234,388 |
950,982,883 |
4,590,013,371 |
|
Sub-total |
1,521,476,815 |
21,892,937,553 |
20,737,365,563 |
44,151,779,931 |
|
Municipal Councils |
||||
|
Kasungu |
44,463,438 |
22,831,252 |
282,757,015 |
350,051,705 |
|
Luchenza |
43,275,744 |
22,831,252 |
103,248,641 |
169,355,637 |
|
Mangochi |
48,061,009 |
22,831,252 |
372,984,641 |
443,876,902 |
|
Sub-total |
135,800,190 |
68,493,755 |
758,990,297 |
963,284,244 |
|
District Councils |
||||
|
Balaka |
1,141,291,557 |
598,966,550 |
256,455,952 |
1,996,714,059 |
|
Blantyre |
1,785,005,445 |
671,781,175 |
335,000,000 |
2,791,786,620 |
|
Chikwawa |
1,347,465,327 |
847,000,227 |
141,800,000 |
2,336,265,554 |
|
Chiradzulu |
995,461,124 |
671,945,305 |
113,920,500 |
1,781,326,929 |
|
Chitipa |
964,650,957 |
669,050,965 |
85,244,372 |
1,718,326,929 |
|
Dedza |
1,693,110,507 |
1,095,370,092 |
291,320,387 |
3,079,800,986 |
|
Dowa |
1,529,036,867 |
950,986,174 |
316,856,000 |
2,796,879,041 |
|
Karonga |
1,086,493,931 |
688,291,049 |
289,756,458 |
2,064,541,438 |
|
Kasungu |
1,859,526,136 |
1,175,687,494 |
90,616,882 |
3,125,830,512 |
|
Likoma |
261,154,100 |
166,382,383 |
10,057,000 |
437,593,483 |
|
Lilongwe |
3,276,498,101 |
2,294,705,218 |
751,949,300 |
6,323,152,619 |
|
Machinga |
1,366,519,747 |
966,912,635 |
239,830,154 |
2,573,262,536 |
|
Mangochi |
1,996,178,675 |
1,577,331,985 |
236,605,000 |
3,810,115,660 |
|
Mchinji |
1,354,780,812 |
828,752,764 |
141,435,197 |
2,324,968,773 |
|
M'mbelwa |
2,538,500,710 |
1,429,512,447 |
368,000,000 |
4,336,013,157 |
|
Mulanje |
1,491,274,037 |
1,182,333,156 |
566,031,200 |
3,239,638,393 |
|
Mwanza |
661,345,581 |
327,350,175 |
84,645,500 |
1,073,341,256 |
|
Neno |
727,690,448 |
354,834,500 |
76,800,000 |
1,159,324,948 |
|
Nkhatabay |
1,192,979,191 |
767,886,220 |
114,534,000 |
2,075,399,411 |
|
Nkhotakota |
1,231,437,244 |
669,023,283 |
231,864,200 |
2,132,324,727 |
|
Nsanje |
999,344,255 |
708,444,520 |
103,635,000 |
1,811,423,775 |
|
Ntcheu |
1,506,164,994 |
925,031,931 |
400,000,000 |
2,831,196,925 |
|
Ntchisi |
956,188,527 |
549,967,641 |
52,460,000 |
1,558,616,168 |
|
Phalombe |
1,040,501,914 |
700,974,306 |
63,399,200 |
1,804,875,420 |
|
Rumphi |
983,873,376 |
542,051,101 |
118,074,000 |
1,643,998,477 |
|
Salima |
1,185,862,937 |
693,466,128 |
223,040,075 |
2,102,369,140 |
|
Thyolo |
1,555,287,076 |
943,186,577 |
161,264,608 |
2,659,738,261 |
|
Zomba |
1,627,208,771 |
1,175,665,824 |
137,165,250 |
2,940,039,845 |
|
Sub-total |
38,354,832,350 |
24,172,891,824 |
6,001,760,235 |
68,529,484,407 |
|
Total |
40,012,109,355 |
46,134,323,133 |
27,498,116,015 |
113,644,548,582 |
4.0 Other Resources
Local Government Authorities have been allocated other resources that are in the vote of the National Local Government Finance Committee as follows:
4.1 Drug Budget
The drug budget resources are used by the District Hospitals but they are appropriated under the NLGFC Vote. The details in terms of the allocation of the drug budget per district council is presented in table 7 below:
Table 7: 2022-2023 DISTRICT COUNCILS DRUG BUDGET (MK)
4.2 Budget for GESD Performance Based Grant
District Councils will receive an estimated MK11.9 billion for implementation of development projects under the World Bank funded Governance to Enable Service Delivery (GESD) project. The allocation of resources under this project considers performance of councils and the final allocation will be done after finalizing results of the Local Authority Performance Assessment and Triggers. See table 8
Table 8: GESD LAs PGB Ceiling for 2022-2023 Financial Year
|
No. |
Name of Council |
Amount |
|
1 |
Balaka |
379,088,801.45 |
|
2 |
Blantyre |
278,305,551.86 |
|
3 |
Chikwawa |
476,126,872.52 |
|
4 |
Chiradzulu |
284,453,276.51 |
|
5 |
Chitipa |
251,093,000.31 |
|
6 |
Dedza |
622,619.914.63 |
|
7 |
Dowa |
529,700,358.54 |
|
8 |
Karonga |
289,683,623.01 |
|
9 |
Kasungu |
649,591,965.54 |
|
10 |
Likoma |
42,909,699.85 |
|
11 |
Lilongwe |
1,080,078,217.80 |
|
12 |
Machinga |
603,577,166.37 |
|
13 |
Mangochi |
802,834,107.88 |
|
14 |
Mchinji |
400,845,132.43 |
|
15 |
M'mbelwa |
659,719,692.84 |
|
16 |
Mulanje |
623,973,060.94 |
|
17 |
Mwanza |
116,461,784.71 |
|
18 |
Neno |
134,865,355.90 |
|
19 |
Nkhatabay |
274,927,580.95 |
|
20 |
Nkhotakota |
337,449,491.09 |
|
21 |
Nsanje |
240,708,759.06 |
|
22 |
Ntcheu |
464,880,707.77 |
|
23 |
Ntchisi |
227,052,410.72 |
|
24 |
Phalombe |
458,291,317.46 |
|
25 |
Rumphi |
216,328,296.64 |
|
26 |
Salima |
371,095,354.84 |
|
27 |
Thyolo |
569,849,540.08 |
|
28 |
Zomba |
495,760,618.30 |
|
TOTAL |
11,882,271,660.00 |
|
5.0 C ONCLUSION
The National Local Government Finance Committee (NLGFC) would like to appeal 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.
Kondwani Santhe, PhD FCCA
ACTING EXECUTIVE DIRECTOR
Annex 1: Local Authority Development Budget For 2022-23 Financial Year (MK)
|
NAME OF COUNCIL |
Constituency Development Fund |
Water Structures Fund |
District Development Fund |
Infrastructure Development Fund |
Construction of City Roads |
GESD – PBG |
Total 2022-23 Budget |
|
City Councils |
|||||||
|
Blantyre |
800,000,000 |
96,000,000 |
- |
171,234,388 |
6,120,000,000 |
- |
7,659,234,388 |
|
Lilongwe |
400,000,000 |
48,000,000 |
- |
171,234,388 |
6,120,000,000 |
- |
6,211,234,388 |
|
Mzuzu |
100,000,000 |
12,000,000 |
- |
171,234,388 |
3,200,000,000 |
- |
4,943,234,388 |
|
Zomba |
100,000,000 |
12,000,000 |
- |
171,234,388 |
3,200,000,000 |
- |
3,079,234,388 |
|
Sub-total |
1,400,000,000 |
168,000,000 |
- |
684,937,553 |
18,640,000,000 |
- |
21,892,937,552 |
|
Municipal Councils |
|||||||
|
Kasungu |
- |
- |
- |
22,831,252 |
- |
- |
22,831,252 |
|
Luchenza |
- |
- |
- |
22,831,252 |
- |
- |
22,831,252 |
|
Mangochi |
- |
- |
- |
22,831,252 |
- |
- |
22,831,252 |
|
Sub-total |
- |
- |
- |
68,493,755 |
- |
- |
68,493,756 |
|
District Councils |
|||||||
|
Balaka |
400,000,000 |
48,000,000 |
139,550,924 |
11,415,626 |
- |
377,028,313 |
941,369,446 |
|
Blantyre |
500,000,000 |
60,000,000 |
111,781,175 |
- |
- |
278,305,551.86- |
922,351,548 |
|
Chikwawa |
600,000,000 |
72,000,000 |
175,000,227 |
- |
- |
472,693,730 |
1,276,272,848 |
|
Chiradzulu |
500,000,000 |
60,000,000 |
111,945,305 |
- |
- |
284,499,590 |
928,668,993 |
|
Chitipa |
500,000,000 |
60,000,000 |
109,050,965 |
- |
- |
255,639,225 |
827,632,432 |
|
Dedza |
800,000,000 |
96,000,000 |
187,954,466 |
11,415,626 |
- |
622,238,952 |
1,670,973,726 |
|
Dowa |
700,000,000 |
84,000,000 |
166,986,174 |
- |
- |
527,853,121 |
1,437,406,636 |
|
Karonga |
500,000,000 |
60,000,000 |
116,875,423 |
11,415,626 |
- |
287,996,779 |
947,288,663 |
|
Kasungu |
900,000,000 |
108,000,000 |
167,687,494 |
- |
- |
633,992,985 |
1,768,073,808 |
|
Likoma |
100,000,000 |
12,000,000 |
54,382,383 |
- |
- |
42,808,835 |
195,697,845 |
|
Lilongwe |
1,800,000,000 |
216,000,000 |
278,705,218 |
- |
- |
1,081,679,032 |
3,307,231,827 |
|
Machinga |
700,000,000 |
84,000,000 |
171,497,009 |
11,415,626 |
- |
599,225,036 |
1,523,585,782 |
|
Mangochi |
1,200,000,000 |
144,000,000 |
233,331,985 |
- |
- |
822,596,632 |
2,342,034,214 |
|
Mchinji |
600,000,000 |
72,000,000 |
156,752,764 |
- |
- |
398,228,514 |
1,118,087,735 |
|
M'mbelwa |
1,100,000,000 |
132,000,000 |
197,512,447 |
- |
- |
654,102,532 |
2,034,608,132 |
|
Mulanje |
900,000,000 |
108,000,000 |
174,333,156 |
- |
- |
616,161,879 |
1,755,239,440 |
|
Mwanza |
200,000,000 |
24,000,000 |
103,350,175 |
- |
- |
120,533,902 |
422,240,800 |
|
Neno |
200,000,000 |
24,000,000 |
130,834,500 |
- |
- |
136,741,246 |
459,113,050 |
|
Nkhatabay |
600,000,000 |
72,000,000 |
95,886,220 |
- |
- |
268,325,606 |
1,012,420,508 |
|
Nkhotakota |
500,000,000 |
60,000,000 |
109,023,283 |
- |
- |
339,120,830 |
981,093,223 |
|
Nsanje |
500,000,000 |
60,000,000 |
148,444,520 |
- |
- |
238,787,501 |
910,399,922 |
|
Ntcheu |
700,000,000 |
84,000,000 |
141,031,931 |
- |
- |
464,880,707.77- |
1,354,919,754 |
|
Ntchisi |
400,000,000 |
48,000,000 |
101,967,641 |
- |
- |
226,242,612 |
750,910,011 |
|
Phalombe |
500,000,000 |
60,000,000 |
140,974,306 |
- |
- |
459,828,763 |
1,125,824,482 |
|
Rumphi |
400,000,000 |
48,000,000 |
94,051,101 |
- |
- |
215,146,675 |
733,861,788 |
|
Salima |
500,000,000 |
60,000,000 |
122,050,502 |
11,415,626 |
- |
373,401,757 |
1,036,584,678 |
|
Thyolo |
700,000,000 |
84,000,000 |
159,186,577 |
- |
- |
572,439,220 |
1,476,128,376 |
|
Zomba |
900,000,000 |
108,000,000 |
167,665,824 |
- |
- |
492,353,836 |
1,626,418,366 |
|
Sub-total |
17,900,000,000 |
2,148,000,000 |
4,067,813,695 |
57,078,130 |
- |
11,882,271,660.00 |
35,045,856,330 |
|
Total |
19,300,000,000 |
2,316,000,000 |
4,067,813,695 |
810,509,438 |
19,640,000,000 |
11,882,271,660.00 |
57,007,287,638 |
