Invest in high-potential areas to raise revenue, Musasizi tells local leaders
Musasizi emphasised strategic investments and digital revenue systems as key measures to improve local revenue collection, reduce reliance on funding from the central Government and strengthen the financial independence of local governments.
Hannington Ashaba, Acting Director of Budget at the Ministry of Finance, Planning and Economic Development, represents Minister of Finance Henry Musasizi at the two-day Local Government Regional Budget Consultative Workshop for the Western Region, held at Lake View Hotel in Mbarara City. (Credit: Abdulkarim Ssengendo)
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Finance minister Henry Musasizi has urged local governments in the western region to invest directly in high-potential areas that can boost revenue collection and strengthen their financial independence.
Musasizi emphasised strategic investments and digital revenue systems as key measures to improve local revenue collection, reduce reliance on funding from the central Government and strengthen the financial independence of local governments.
He said such investments would streamline revenue collection processes and maximise internally generated revenue.
Musasizi’s message was delivered by Hannington Ashaba, the acting director of budget at the Ministry of Finance, Planning and Economic Development, during the opening of a two-day Local Government Regional Budget Consultative Workshop for the western region.
The multi-district consultative meeting began on September 21, 2026, at Lake View Hotel in Mbarara city, bringing together participants from districts across the region.
Musasizi emphasised the critical role of local governments in implementing the Tenfold Growth Strategy.
The budget consultative meeting follows the National Budget Conference held at Speke Resort and Convention Centre, Munyonyo, Kampala, on September 10, 2026.
Musasizi told participants that the outcomes of the budget consultations, together with consultations with lower local governments and key stakeholders, should inform their budget framework papers for the 2027/28 financial year.
He said the 2027/28 budget would be guided by seven strategic shifts: revenue-led fiscal consolidation, prudent management of oil revenue, mobilisation of private capital, accelerating the Tenfold Growth Strategy, job creation, export growth, and household income and wealth creation programmes.
District chairpersons decry sabotage of revenue collection
The workshop was held under the theme, “Full monetisation of Uganda’s Economy through commercial agriculture, industrialisation, expanding and broadening services, digital transformation and market access”.
Alone Turahi, chairman of Isingiro district, and Rev. Jackson Tumuhirwe, vice-chairman of Rwampara district, raised concerns over the suspension of loading fees on agricultural produce, including matoke.
The two districts largely depend on matoke as a major source of revenue, and the chairpersons asked the Government to reconsider its decision, warning that the suspension of local levies on matoke would have a severe economic impact on the districts.
“All local governments we have in Uganda under decentralisation policy survive on local revenue; when the district doesn’t collect local revenue, that district cannot survive," he stated.
However, Dr Arthur Bainomugisha, executive director of the Advocates Coalition for Development and Environment, supported the suspension of taxes on agricultural products, noting that agriculture is a security-sensitive sector that needs to be supported to feed the nation.
Other chairpersons also raised concerns. Peter Musinguzi, chairman of Bunyangabu district, asked the Government to increase salaries for district political leaders.
He also complained about what he described as a contradiction in government policy on parental contributions in schools, saying the Government was not yet ready to stop parents from contributing financially to public education.
Dan Mukago, chairman of Kiruhura district, appealed to the government to increase funding to districts, emphasising that some districts cover vast geographical areas.