The Treasury will lose over K4.8 million to pay Councillors their new revised allowances.
Local Government Minister Vincent Mwale recently told Parliament that Government has approved the proposal to increase monthly allowances for Councillors from K700 to K3,000.
An analysis has shown that the Treasury will cough up a whooping K4.872,000 million monthly to pay all the 1,624 Councillors across the country.
In one financial year, the Treasury will spend over 58 million to pay the Councillor’s allowances.
That is more than the K35.6 million allocated to the rolling out of the School Feeding Programme in the 2017 national budget.
Finance Minister Felix Mutati in an interview clarified that the new increment has been catered for in the 2017 national budget under the Local Government Equalisation Fund.
But a further analysis shows that only K887.9 million has been allocated for Local Government Equalisation Fund in the 2017 national budget.
Set up in 2014, the Local Government Equalisation Fund is a formula based funding mechanism where the Ministry of Finance sets aside 5 percent of revenue from Income Taxes to be channelled to funding Councils.
With this break down, it shows that the Fund will now be chewed up in Councillor’s allowances leaving nothing for local government service provision.
But Mr Mutati insisted there will be no funding shortfalls as the Councillor’s allowances had been budgeted for.
He said he is just waiting for the Ministry of Local Government to return to the Ministry of Finance with finalised paper work to start disbursing the funds.