Members of the Local Government Finance Commission, under the Ministry of Local Government, recently wrapped up a three-day series of consultation meetings across Alebtong, Oyam, and Lira City districts.
This initiative is part of a nationwide tour aimed at enhancing local governance and fiscal decentralization.
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The consultations focused on crucial themes such as fiscal decentralization, local economic development through revenue enhancement, and the importance of monitoring and evaluation in the local government framework.
Martine Unzia, a Commissioner with the Local Government Finance Commission, emphasized the need for educating both local leaders and taxpayers before implementing any new tax measures.
She stated, “Before we introduce anything related to taxes, we should be able to mobilize and educate first of all the leaders and also the taxpayers. We may think the politicians are interfering, but they also have pressure from the local person who pays taxes.”
During the discussions, leaders raised concerns about the current fiscal allocations, with many arguing that the 15% of the national budget designated for local governments is insufficient to meet their growing demands.
David Kennedy Odongo, LC V Chairperson of Alebtong, highlighted the necessity of addressing fiscal allocations to improve service delivery at the grassroots level.
He noted, “This is another area that we need to address. Money should be brought to the service delivery point. The key question of decentralization is twofold: to improve service delivery and allow people at the grassroots level to access services timely. If we keep money far away from them, those at the district level, who understand the real challenges of the people, will be kept without work.”
James Ogwang, the Principal Financial Analyst- Local Revenue at the Local Government Finance Commission, pointed out existing challenges and untapped revenue opportunities in Uganda’s fiscal relationship with local governments.
He mentioned that significant revenue could be generated through improved management of property rates and market operations. “There’s a lot of revenue which is not tapped under property rates. The second area is the issue of markets; if this revenue is fully utilized, it can be substantial,” he explained.
Additionally, Ogwang revealed the commission’s ambitious target of generating one trillion shillings from local governments by the 2025-2026 financial year.
This goal involves digitalizing revenue collection through the Integrated Revenue Administration System, which is now operational in nearly 166 local governments.
The commission believes that embracing technology in revenue collection will significantly enhance financial efficiency and accountability at the local level.
ENDS
