The Entebbe Municipal Mayor, Vincent Kayanja, says the misallocation of local revenue funds has affected their operations. Local revenue is expected to finance priorities that are not funded by the central government and donors.
More than 100 Districts and lower local
government authorities are crying foul following the misallocation of local
revenue funds by the Finance Planning and Economic Development Ministry this
financial year, Uganda Radio Network has learnt.
The Entebbe Municipal Mayor,
Vincent Kayanja, says the misallocation of local revenue funds has affected
their operations. Local revenue is expected to finance priorities that are not
funded by the central government and donors. Such activities include garbage
collection, rehabilitation of several feeder roads, Local government
expenditures including Administration and the financing of Local government
According to Kayanja, as a result of the
misallocation, the affected Districts and lower local government authorities
received less money in the first quarter of 2019/2020 financial year, which
runs to September. He says the Finance ministry is struggling to
settle the Shillings 182 billion anomaly while the local government units are
still stuck on how to finance their priority projects.
These include among
others Arua Municipality, Gulu, Jinja, Kabaale, Lira, Masaka, Mbale, Mbarara,
Moroto, Soroti, Tororo, Kasese, Hoima, Kabarole and Mukono districts. For instance, Iganga municipality with a budget of Shillings
190M was allocated Shillings 4.5 billion, which affected Entebbe,
Kabaale, Kasese and Mbale municipalities whose expenditure budget was cut.
Entebbe that projected to collect up to Shillings 7.9 billion in local revenue was
only allocated Shillings 417 million affecting most of the institutions the
municipal council runs. Kayanja notes that government hasn’t labored to
rectify the anomaly raising fear in different municipalities on how they will
deliver services without funding.
Kayanja says local revenue shouldn’t be allocated
to different local governments as an equalization grant, adding each local
government should be allocated funds based on its development expenditure
budget submitted to the Ministry. He warns that unless the Ministry rectifies the
anomalies, they may be forced to mobilise their electorate not to pay taxes.
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In 2013, government introduced an integrated
financial management system, an IT-based budgeting and accounting system to
control spending, process payments, budgeting and reporting for government entities. The idea was to incorporate all local government
budgets into the essential financial management system to among others stop
corruption and embezzlement of funds at lower local government units.
All local government units are expected to
submit their budgets and financial requests to the central bank for disbursement
by through the Finance, Planning and Economic Development Ministry. This,
according to Innocent Ssewankambo, a member of the Uganda Local Government
Association has centralized the powers of local governments to decide on how
and when to allocate resources.
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Margaret Masembe, a local leader in Jinja, one
of the affected municipalities, says government needs to quickly intervene
since there are limited alternative sources of local revenue.
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Jim Mugunga, the Spokesperson Ministry of
Finance Planning and Economic, said the ministry is trying to rectify the
anomalies, saying all local governments will be able to recieve what they are