Luwero district suffered a shortfall in local revenue collection in the
first two quarters of the financial year 2021/22 resulting from the lockdown of
key sectors and leakages.
According to Luwero District Budget Performance
report for 2021/22, the district has only so far collected Shillings 478
million out of the Shillings 1.2 billion shillings they expected to collect in
the two quarters of the financial year.
This represents a shortfall of Shillings 722 million, which they
expected to collect in the two quarters ending December 2021. The l collections
represent only 12.8% of the Shillings 3.7 billion the district expected to
collect in the entire financial year.
The report also shows that only Shillings 42,000 out of Shillings 13
million expected from issuing licenses to liquor dealers has been collect and
zero out of the Shillings 35 million they expected to collect from education
The report indicates that the district has also registered low
revenue collection from the issuance of licenses to new businesses, inspection
fees, market gate collections and none from royalties.
Isaac Wampamba, the Luwero District Finance and
Planning Secretary, says that the low revenue collections are due to the
continued lockdown of bars and schools as well as curfew restrictions.
that there are also corruption tendencies where officers under-declare
collections and embezzle the taxes.
//Cue in: “Tuli mu quarter….
Cue out;…ye gundi,”//
Godfrey Walakira, the Luwero District Senior
Finance Officer, says that with support from the Ministry of Local Government
they intend to digitalize local revenue collection to allow the residents to
pay directly to the bank to minimize leakages.
Erastus Kibirango , the LC 5 Chairman of Luwero
district, says that he is hopeful the district could still meet the target if all sectors are
reopened in January 2022 and the leakages are blocked.
Kibirango says that the district has also
identified more sources of revenue, which include fees on land leases and billboards
among others to boost their local revenue collections.
Robert Ssekitoleko, the Bamunanika County Member
of Parliament has also asked the district to ensure the little money collected
is properly accounted for and used for key services if residents are to embrace tax payment.
//Cue in: “It is not only…
Cue out;…properly used,”//
//Cue in: “Nga Omubaka ….
Cue out;…bana Uganda Omusolo,”//
The district intends to resort to fundraising to
implement projects like the completion of its headquarters and hospital among
others. They also intend to lobby development partners, Departments and
Ministries for funding of other projects.
In the 2020/21 financial year, the district only
collected Shillings 2.065 out of 3.123billion, which they budgeted. The
shortfall was largely attributed to the lockdown announced by the government to
contain the COVID-19 pandemic.
The Central Government disbursed Shillings 55.725
billion and development partners donated Shillings 241 .7 million in the financial year 2020/21.
The largest portion of the budget went to pay salaries, pensioners and fight