The Minister of Urban and Rural Development, James Sankwasa, says the ministry is yet to establish a formula on how funds are distributed to local authorities, which will be done by the next financial year.
This was in response to MP Ambrosius Kumbwa, who questioned how the ministry allocation formula promotes equitable distribution of funds across urban and rural areas.
The minister says that the criteria used to allocate funds is not done based on a formula but on various priority projects.
"First are ongoing projects that span over a period of two or more financial years. If the particular project has not reached its completion, it becomes a priority. Our lives are treated with unforeseen immediate projects and then preventive measures-related projects, which are the personal mentors of bank infrastructure, pumps, particularly local authorities, sewer treatment plants, water treatment plants, and oxidation points."
He says available funds are annually planned to cater for cash flow needs for urban centres across all the country's 14 regions.
Sankwasa acknowledges there are often delays in the transfer of funds to local authorities, as the financial year of the ministry does not coincide with the financial year of local authorities.
He says Parliament is the main cause of delays in the transfer of funds to local authorities.
"The first culprit in delaying the budget is this Parliament. What time do we have to debate the budget? What time does this August House approve the budget? Then it goes to the National Council, and from the recent Council, it must be approved as an appropriation bill. By the time we approve the budget, it is already two months lost in the financial aid. So the first delay in this Parliament, we need to come up with a proper timetable as to when to approve the budget."
Sankwasa further urged all local authorities to submit their invoices and submit monthly reports of commitments and actual expenditure of every regional council and local authority.