TRANSPARENCY: Matia Kasaija Asked to Justify Why Local governments’ Fees, Fines are Centralized

Finance Minister Matia Kasaija

Members of Parliament in partnership with the shadow minister for local government Ethel Naluyima have tasked the minister of finance Matia Kasaija to rectify the law under which the central government is authorized to use local governments’ revenue.

For decades, the central government has consistently had direct control over levies, taxes and fees from the local government even after claiming that decentralization has been put on board. However, this is not unconstitutional according to the Local Government Act.

Member of parliament representing Nyendo-Mukungwe division, Mathias Mpuuga has attributed poor service delivery at the district level to centralization of local governments’ revenue.” Under the law, these levies are supposed to remain with local government but since the Centre takes away the revenue, service delivery in the districts has collapsed,” said Mpuuga.

 Mpuuga added that this further more accounts for the “rotting” of urban authorities in garbage.

The National Unity platform diehard has advised the finance minister to make a “pronouncement” that will completely hinder small local collections from being taken up from authorities.

He recommended that local governments should be addressed about their right to retain their local collections, “An instruction be sent to the local governments to retain this money because the allows them,” said Mpuuga.

According to the Local Government Act 85(1), conditions for revenue distribution are set that is,” In the city and municipal councils, revenue shall be collected and the division councils shall retain 50% of all the revenue it collects in its area of jurisdiction and remit 50% to the city or municipal council.” No percentage of revenue is directed to the centre as per for this provision.

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