District chiefs need more from budget
Jun 25, 2008
ON June 12, the finance minister, Dr Ezra Suruma, presented the 2008/09 financial year budget to Parliament. Of the sh6.1 trillion total budget, sh1.23 trillion was allocated to local governments. This will be disbursed as conditional, unconditional and equalisation grants. However, local leaders ex
ON June 12, the finance minister, Dr Ezra Suruma, presented the 2008/09 financial year budget to Parliament. Of the sh6.1 trillion total budget, sh1.23 trillion was allocated to local governments. This will be disbursed as conditional, unconditional and equalisation grants.
Another sh45b was allocated to local governments to supplement the local service and hotel taxes. Of this, sh12b is direct graduated tax compensation, while sh33b is equalisation grant to help disadvantaged districts recruit staff.
However, local leaders expected a bigger allocation than what they got. Joshua Kato talked to some of them and below are their views.
Norbert Mao, chairman Gulu district
“This year’s budget had both positive and negative effects to local governments. The good news is that the new taxes; the local service tax and the hotels tax will be implemented this year. Perhaps this will help improve the remuneration of local leaders. I also applaud the Government’s move to promote education in northern Uganda.
The north is hosting a major education workshop to draft a blue print which will be used to promote education in the region. The budget allocated sh1.1 trillion to road works, and this is a welcome move. However, the Government should also invest in the railways sector to reduce pressure on the roads. In developed countries, heavy cargo is carried by railway so that roads are not damaged.â€
John Wycliffe Karazarwe, chairman Ntungamo district
and president of the Uganda Local Government Association
“The budget is not so promising for local governments. Although the new taxes are going to start, not all districts will benefit from them. Districts still need more graduated tax compensation. Only sh12b was given to districts for this purpose, but how do you expect 81 districts to share that money? We needed more money.
Julius Ochen, chairman Amuria district
“The budget had nothing new for local governments. Local governments handle over 70% of development work in the country, but are given only 30% of the national budget. This means there are bigger gaps that go unfilled. We expected to get more G/T compensation, but the sh12b that was allocated is peanuts. Lack of compensation has crippled many local governments. They no longer have finances to hold regular meetings and yet council meetings are mandatory. The situation is worse in the war ravaged areas of Teso, Acholi and West Nile. Last year’s floods led to the collapse of many markets in northern Uganda, where local leaders used to collect dues. They should have been given special consideration in the budget.â€
Joseph Musoke, chairman Mityana district
“If the allocation for roads is used properly, districts will benefit a lot, especially in as far as road units are concerned. At the moment, we spend millions to hire private companies to carry out road works. Getting our own equipment will ease our work.â€
Johnson Muyanja Ssenyonga, Mayor Mukono Town Council
“There are several aspects in the budget from which local governments can benefit if they are well-implemented. For example, the allocation on road maintenance is promising. However, for us to benefit, the Government should change the tendering system so that local governments are given the supervisory role. Currently, the central government is in charge of tenders for road works.
Because local governments do not play any role in the tender awards, they cannot do anything in case the contractors carry out shoddy work. The Government should also give more funds to the urban road sector. In the agriculture sector, the 500 hand tractors in the budget speech should be stationed at sub-counties for effective management.â€
Adson Kakuru, chairman Kabale district
“If all the sh45b was for graduated tax compensation, we would be very happy. However, if only sh12b has been given to us as compensation, then we can as well declare districts dead. We have suffered for over two years because of inadequate funding. Something has to be done immediately to save the districts.
As for the new taxes, most of the rural districts will not benefit from them. For example, here in my district, none of the 17 sub-counties has a hotel. The sub-counties do not also have farmers with the required acreage of land and number of cattle to meet the local service tax requirements.â€
Another sh45b was allocated to local governments to supplement the local service and hotel taxes. Of this, sh12b is direct graduated tax compensation, while sh33b is equalisation grant to help disadvantaged districts recruit staff.
However, local leaders expected a bigger allocation than what they got. Joshua Kato talked to some of them and below are their views.
Norbert Mao, chairman Gulu district
“This year’s budget had both positive and negative effects to local governments. The good news is that the new taxes; the local service tax and the hotels tax will be implemented this year. Perhaps this will help improve the remuneration of local leaders. I also applaud the Government’s move to promote education in northern Uganda.
The north is hosting a major education workshop to draft a blue print which will be used to promote education in the region. The budget allocated sh1.1 trillion to road works, and this is a welcome move. However, the Government should also invest in the railways sector to reduce pressure on the roads. In developed countries, heavy cargo is carried by railway so that roads are not damaged.â€
John Wycliffe Karazarwe, chairman Ntungamo district
and president of the Uganda Local Government Association
“The budget is not so promising for local governments. Although the new taxes are going to start, not all districts will benefit from them. Districts still need more graduated tax compensation. Only sh12b was given to districts for this purpose, but how do you expect 81 districts to share that money? We needed more money.
Julius Ochen, chairman Amuria district
“The budget had nothing new for local governments. Local governments handle over 70% of development work in the country, but are given only 30% of the national budget. This means there are bigger gaps that go unfilled. We expected to get more G/T compensation, but the sh12b that was allocated is peanuts. Lack of compensation has crippled many local governments. They no longer have finances to hold regular meetings and yet council meetings are mandatory. The situation is worse in the war ravaged areas of Teso, Acholi and West Nile. Last year’s floods led to the collapse of many markets in northern Uganda, where local leaders used to collect dues. They should have been given special consideration in the budget.â€
Joseph Musoke, chairman Mityana district
“If the allocation for roads is used properly, districts will benefit a lot, especially in as far as road units are concerned. At the moment, we spend millions to hire private companies to carry out road works. Getting our own equipment will ease our work.â€
Johnson Muyanja Ssenyonga, Mayor Mukono Town Council
“There are several aspects in the budget from which local governments can benefit if they are well-implemented. For example, the allocation on road maintenance is promising. However, for us to benefit, the Government should change the tendering system so that local governments are given the supervisory role. Currently, the central government is in charge of tenders for road works.
Because local governments do not play any role in the tender awards, they cannot do anything in case the contractors carry out shoddy work. The Government should also give more funds to the urban road sector. In the agriculture sector, the 500 hand tractors in the budget speech should be stationed at sub-counties for effective management.â€
Adson Kakuru, chairman Kabale district
“If all the sh45b was for graduated tax compensation, we would be very happy. However, if only sh12b has been given to us as compensation, then we can as well declare districts dead. We have suffered for over two years because of inadequate funding. Something has to be done immediately to save the districts.
As for the new taxes, most of the rural districts will not benefit from them. For example, here in my district, none of the 17 sub-counties has a hotel. The sub-counties do not also have farmers with the required acreage of land and number of cattle to meet the local service tax requirements.â€