Kasese District In Financial Crisis

May 01, 2003

KASESE district local government is reported to be in a financial crisis.

By John Nzinjah
KASESE district local government is reported to be in a financial crisis.
A source at the district headquarters in Rukoki recently said the district had outstanding debts amounting to over sh400m.
“Only services funded on grants from the central government and non-governmental organisations are operating.
“But those being serviced on local revenue collections are at the verge of collapsing,” the source, who spoke on condition of anonymity said.
During a budget conference in March, the district chairman, Yokasi Bihande, lamented over the poor local revenue collection, saying, the district had collected over sh150m in Graduated Taxes during the financial year.
Before the Allied Democratic Rebels (ADF) rebellion, the district was collecting about sh1.2b but currently it is collecting below sh300m.
Bihande challenged the sub-county chiefs and LC3 chairpersons to sensitise the public about the importance of paying taxes.
“Now the ADF war is over and people have resettled.
“You cannot give that as reason any more for failing to mobilise local revenue,” Bihande said.
The district had budgeted for over sh16b for the 2002/03 financial year, but more than 80% was to be raised from the central government and donors.
The chief administrative officer, Eseri Ngene, said the local revenue base of the district was poor.

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